Home -> Law Blog Directory -> Legal News Blogs -> JURIST - The Paper Chase

Legal News

: JURIST - The Paper Chase

SEC charges former NASDAQ chairman with securities fraud

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] Former NASDAQ stock market chairman Bernard Madoff was arrested Thursday by federal agents on charges of securities fraud. The US Securities and Exchange Commission (SEC) charged Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, on Thursday with engaging in a multi-billion dollar Ponzi scheme. He has been charged with violating the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. Madoff allegedly told two employees of his firm Wednesday that his investment advisory business was a fraud. According to the complaint, Madoff "stated that he was 'finished,' that he had 'absolutely nothing,' that 'it's all just one big lie,' and that it was 'basically, a giant Ponzi scheme.'" Madoff was released on bail later Thursday. A preliminary hearing is scheduled for January 12. Madoff, 70, founded his investment firm in 1960. He has served as chairman of the board of directors of the NASDAQ stock market and was a member of the board of governors of the National Association of Securities Dealers (NASD). According to his firm's website, it ranks among the top 1 percent of US securities firms.

Full post as published by JURIST - The Paper Chase on December 12, 2008 (boomark / email).