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Details of Madoff Ponzi Scheme from Madoff

By Mark H. Astarita, Esq.

According to Madoff's allocution (where the defendant details his crime in connection with his guilty plea) provides some of the details that have been missing from the story thus far.According to Madoff, the fraud started in the early 1990s, when the markets were not doing well. He began the fraud as most Ponzi schemes start - continuing to pay dividends to existing investors, thinking that the markets would turn, and all would eventually be alright.Well, that didn't happen. He kept the money at Chase Manhattan Bank, and despite the passage of years, and the delivery of account statements to clients, he did not make any trades, but rather spent his time moving money around to give the appearance of activity, lying to the SEC (that should make Chairman Cox happy) and fabricating account statements...continue to full post

Full post as published by SECLaw.com on March 12, 2009 (boomark / email).