Madoff story smells funny...

Quote from TSGannGalt:

Well, RIEF and RIFF are seperate from Medallion or Nova, needless to say RIEF and RIFF are relatively new.

But yes... you're right (But... but... I did write... "Medallion"), RenTech manages OPM for 2 of their funds.
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Yes, I am aware you did explicitly state "Medallion", however, RC's question was whether people would start questioning Rentech, and your reply either conveniently or completely unintentionally neglected to include Rentec's funds that manage OPM and appear to be down YTD BTW.
 
Quote from Equalizer:

Yes, I am aware you did explicitly state "Medallion", however, RC's question was whether people would start questioning Rentech, and your reply either conveniently or completely unintentionally neglected to include Rentec's funds that manage OPM and appear to be down YTD BTW.
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Do Rentec funds -> Medallion returns?
What is Medallion ytd?
 
Quote from Equalizer:

Yes, I am aware you did explicitly state "Medallion", however, RC's question was whether people would start questioning Rentech, and your reply either conveniently or completely unintentionally neglected to include Rentec's funds that manage OPM and appear to be down YTD BTW.
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You're correct. My bad.
 
I think the Madoff story sounds funny as well. I suspect:

* His exit strategy was planned years in advance with lawyers.

* The lock and key secrecy that has been reported was planned years in advance to give the sons plausible deniability.

* Having the sons turn him in was designed to inoculate them.

* He was probably making a pretty good return on the money that was invested with him for most of the time. Some principal may have been used to pay returns, but billions survived and has been diverted elsewhere.

* He had help, probably from the sons but also probably from others.
 
Quote from W4rl0ck:

http://www.ritholtz.com/blog/2008/12/madoff-story-smells-funny/

I have no special insight into the Madoff story.

However, my spidey sense is tingling.
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Listen, there is nothing new under the sun and because this type of behavior is human it has happened in the past, is happening as we speak, and will continue to happen in the future.

Getting caught hasn't prevented, nor will prevent, future greed based scams.

They (not all) will be exposed and it will be a case of 'rinse and repeat'.

Your spidey sense is just common sense.
 
you that these are bad ass people when they rip off charitable foundations and university trust funds. that is bad ass. really bad




Quote from W4rl0ck:

http://www.ritholtz.com/blog/2008/12/madoff-story-smells-funny/

I have no special insight into the Madoff story.

However, my spidey sense is tingling.

Consider this: Running a billion dollar Ponzi scheme has to be very time consuming. Running a $50 billion Ponzi scheme by yourself, at age 70?

I don’t think it can be done.

Just generating the phony transaction receipts is a full time job. How did this son-of-a-bitch do it all by himself? Madoff HAD TO HAVE HELP.

I simply cannot believe he did it himself, all alone. His entire scheme was predicated upon finding another 1% of assets every month to payout to the prior investors. Between raising moeny and running operations, it was more than a 1 man job.

And when the market hit the skids and topped out so fast — it fell much quicker in 2008 than in 2000 — he ran out of manuevering room. Madoff had to know he was going down, and everyone who was working with him — everyone who knew of the scheme — they were going down, too.

So he confessed — TO HIS SONS. AND THEY TURNED HIM IN.

And Bloomberg reports they are already represented by Martin Flumenbaum, a lawyer.

~~~

Maybe I’ve read one too many detective novels, but consider this strictly hypothetical, based on-no-facts whatsoever, wildly imaginative hypothesis: If I were running a $50 billion Ponzi scheme, I would have to bring in someone close to help me with it.

Who is closer than my family?

When it became clear there was no where else to turn, instead of bringing down the entire dynasty, I would have them turn me in, to protect the family and what left of the legacy.

I would take the fall so they wouldn’t have to.

~~~

As I noted, I have no special facts, no insight into this what-so-ever. Other than the story we have been fed so far doesn’t make any sense.

Who was Madoff’s accomplices? I have no idea, but there has to be some! If I were the SEC, I would be looking over close friends and family closely. Very, very closely.
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Thank God the regulators were there to catch this! Imagine if he had been able to carry this out for a long period? 100's maybe even 1000's of people could have been affected. I know that I will sleep much more soundly now.

PS. Special kudos to Chris Cox and that ever vigilant, hardworking crew at the SEC. :D
 
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