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Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC (“BMIS”) Injunction

December 22, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20834 / December 19, 2008

Securities and Exchange Commission v. Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC (S.D.N.Y. Civ. 08 CV 10791 (LLS))

SEC Obtains Preliminary Injunction, Asset Freeze, and Other Relief Against Defendants

The United States Securities and Exchange Commission announced that on December 18, 2008, the Honorable Judge Louis L. Stanton, a federal judge in the Southern District of New York, entered a preliminary injunction order, by consent, against Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC (“BMIS”). The preliminary injunction continues to restrain Madoff and BMIS from violating certain antifraud provisions of the federal securities laws. Also, by consent, Judge Stanton ordered that assets remain frozen until further notice, continued the appointment of a receiver for two entities owned or controlled by Madoff in the United Kingdom (while defendant BMIS remains subject to oversight by a SIPC trustee), and granted other relief. The preliminary injunction order continues the relief originally obtained on December 12, 2008, in response to the Commission’s application for emergency preliminary relief that sought a temporary restraining order, an order freezing assets, and other relief against Madoff and BMIS based on his alleged violations of the federal securities laws.

The SEC’s complaint, filed on December 11, 2008, in federal court in Manhattan, alleges that the defendants have committed a $50 billion fraud and violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act of 1940. The complaint alleges that Madoff last week informed two senior employees that his investment advisory business was a fraud. Madoff told these employees 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.” The senior employees understood him to be saying that he had for years been paying returns to certain investors out of the principal received from other, different investors. Madoff admitted in this conversation that the firm was insolvent and had been for years, and that he estimated the losses from this fraud were at least $50 billion.

The Commission continues to seek, among other things, a permanent injunction, disgorgement of ill-gotten gains plus pre-judgment interest, and civil money penalties.

http://www.sec.gov/litigation/litreleases/2008/lr20834.htm

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ASDCashGenerator – Sit Down and Shut Up!

December 12, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

Wow, with all the attention ASDCashGenerator got recently, here’s a scheme that makes it look like Amateur Night…

Check out this release today (December 11, 2008) from the Security and Exchange Commission:

“SEC Charges Bernard L. Madoff for Multi-Billion Dollar Ponzi Scheme

FOR IMMEDIATE RELEASE 2008-293

Washington, D.C., Dec. 11, 2008 — The Securities and Exchange Commission today charged Bernard L. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The SEC is seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for the firm.

The SEC’s complaint, filed in federal court in Manhattan, alleges that Madoff yesterday informed two senior employees that his investment advisory business was a fraud. Madoff told these employees 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.” The senior employees understood him to be saying that he had for years been paying returns to certain investors out of the principal received from other, different investors. Madoff admitted in this conversation that the firm was insolvent and had been for years, and that he estimated the losses from this fraud were at least $50 billion.

“We are alleging a massive fraud — both in terms of scope and duration,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement. “We are moving quickly and decisively to stop the fraud and protect remaining assets for investors, and we are working closely with the criminal authorities to hold Mr. Madoff accountable.”

Andrew M. Calamari, Associate Director of Enforcement in the SEC’s New York Regional Office, added, “Our complaint alleges a stunning fraud that appears to be of epic proportions.”

According to regulatory filings, the Madoff firm had more than $17 billion in assets under management as of the beginning of 2008. It appears that virtually all assets of the advisory business are missing.

Madoff founded the firm in 1960 and has been a prominent member of the securities industry throughout his career. Madoff served as vice chairman of the NASD, a member of its board of governors, and chairman of its New York region. He was also a member of NASDAQ Stock Market’s board of governors and its executive committee and served as chairman of its trading committee.

The complaint charges the defendants with violations of the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. In addition to emergency and interim relief, the SEC seeks a final judgment permanently enjoining the defendants from future violations of the antifraud provisions of the federal securities laws and ordering them to pay financial penalties and disgorgement of ill-gotten gains with prejudgment interest.

The SEC’s investigation is continuing.

The SEC acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York.

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For more information, contact:

Andrew M. Calamari
Associate Director, Enforcement
SEC’s New York Regional Office
(212) 336-0042

Alexander Vasilescu
Chief, Trial Unit
SEC’s New York Regional Office
(212) 336-0178″

Take THAT ASDCashGenerator! Now, Site Down and Shut Up!

P.S., ASDCashGenerator indictments may be coming soon.

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SEC Conducts Regional Securities Market Enforcement Program To Address Pyramid Schemes

November 4, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

FOR IMMEDIATE RELEASE
2008-261

Washington, D.C., Nov. 3, 2008 — The Securities and Exchange Commission announced today that it conducted an Understanding and Combating Unregulated Investment Schemes seminar in Jamaica from October 29 to 31. The three-day program included intensive training on methods for investigating and prosecuting pyramid and Ponzi-type investment schemes.

The regional program featured 65 delegates from 20 countries throughout Latin America and the Caribbean. The program was conducted primarily by SEC, Commodity Futures Trading Commission (CFTC), and International Monetary Fund (IMF) staff, and was hosted and co-sponsored by the IMF, Financial Services Commission of Jamaica, U.S. Agency for International Development, and the Caribbean Regional Technical Assistance Centre.

Ethiopis Tafara, Director of SEC’s Office of International Affairs, said, “Pyramid schemes have been with us since at least 1920 when Charles Ponzi first swindled nearly 17,000 investors out of millions before his scheme’s inevitable collapse. Pyramid schemes spread like viruses in financial markets, and continue to plague our markets today. The SEC is pleased to share its experience and techniques in investigating and prosecuting these pernicious frauds with our partners in the Caribbean and Latin America.”

Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement said, “Securities authorities must remain constantly vigilant for pyramid and Ponzi schemes and stamp them out as quickly as possible before they run their course. Since the beginning of 2008, the SEC has worked on over 24 Ponzi-type cases that raised over $1 billion from over 15,000 defrauded investors. The SEC appreciates the opportunity to collaborate with our international colleagues, particularly since these schemes are increasingly becoming global in scale.”

George Roper, Acting Executive Director, Financial Services Commission of Jamaica, added, “Given the current state of markets around the world, it is crucial that regulators remain committed to the task of protecting investors from predatory organizers who employ Ponzi-type schemes to deprive the public of their hard-earned money. It was our pleasure to collaborate with our Latin American and Caribbean counterparts, and we thank the SEC, CFTC, and IMF, as well as the other conference speakers, hosts, and sponsors, for conducting this valuable training program.”

The SEC’s technical assistance training program consists of bilateral and regional training programs, assessments, consultations, and review and comment on statutory and regulatory initiatives. The SEC has provided training for more than 1,900 foreign capital market officials from 117 foreign jurisdictions in fiscal year 2008 alone.

For more information on SEC’s technical assistance program contact Dr. Robert M. Fisher or Z. Scott Birdwell at the Office of International Affairs at 202-551-6690, or by email at OIA@SEC.gov.

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