04-14-2021, 10:28 PM
Madoff $65 billion fraud is misleading
<!-- SC_OFF --><div class="md"><p>First this isn’t in any way trying to minimize what Madoff did. Absolutely horrible what he did. He ruined so many lives and non-profits. Makes me sick. The purpose of this post is to show how the media exaggerates financial information and as investors we need to be careful.</p> <p>News says Madoff fraud is the biggest ever at $65 billion. This is very misleading. His client never had the $65 billion to start with. The $65 billion on their quarterly statements were never real. Madoff just made it up. The amount of principal lost is closer to $10 billion.</p> <p>If we are going to run with the $65 billion number than someone could break this record tomorrow. A guy in an investment fund could send a fake statement to one of his clients that says his account is worth $2.1 trillion even though its actually worth only $100 million. Using the same calculation as the Madoff fraud means this fraud was $2 trillion.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Shoddy_Ad7511"> /u/Shoddy_Ad7511 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mqs807/madoff_65_billion_fraud_is_misleading/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mqs807/madoff_65_billion_fraud_is_misleading/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>First this isn’t in any way trying to minimize what Madoff did. Absolutely horrible what he did. He ruined so many lives and non-profits. Makes me sick. The purpose of this post is to show how the media exaggerates financial information and as investors we need to be careful.</p> <p>News says Madoff fraud is the biggest ever at $65 billion. This is very misleading. His client never had the $65 billion to start with. The $65 billion on their quarterly statements were never real. Madoff just made it up. The amount of principal lost is closer to $10 billion.</p> <p>If we are going to run with the $65 billion number than someone could break this record tomorrow. A guy in an investment fund could send a fake statement to one of his clients that says his account is worth $2.1 trillion even though its actually worth only $100 million. Using the same calculation as the Madoff fraud means this fraud was $2 trillion.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Shoddy_Ad7511"> /u/Shoddy_Ad7511 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mqs807/madoff_65_billion_fraud_is_misleading/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mqs807/madoff_65_billion_fraud_is_misleading/">[comments]</a></span>Kind Regards R