In prison in North Carolina (USA) at the 83rd year of life died Bernard Meidoff, the organizer of one of the largest in the history of pyramid schemes. It was reported on Wednesday, April 14, writes The Associated Press.
According to a source of the agency, death came from natural causes.
Meidoff was arrested in December 2008. Three months later, the entrepreneur admitted to defrauding investors and regulators for nearly two decades. As a result of the activities of his fund Bernard L. Madoff Investment Securities, which in fact turned out to be a financial pyramid, more than 3 million depositors suffered around the world. The damage is estimated at $64.8 billion.
In the 1960s, Madoff founded Madoff Investment Securities, an investment hedge fund on $5 thousand. The company promised its clients high returns – a minimum of 10-12% per annum. Investors relied on Madoff’s reputation and believed that he was making money on the stock exchange thanks to access to insider information. However, the scammer paid old clients money from new deposits.
The fraud was exposed in 2008, when during the global crisis some big depositors asked for their money back. As Madoff had no money, his pyramid scheme collapsed.
The swindler was arrested in December 2008. Three months later, the entrepreneur admitted that he had been deceiving investors and regulators for almost two decades. As a result of activities of his fund around the world suffered more than 3 million depositors. The damage is estimated at $64.8.
Maidoff himself was sentenced to 150 years in prison.