When people commonly think of a criminal, a certain image pops in their minds. Normally a scuffy, dressed in all black, carry a fire arm screaming “nice watch mothafucka! run yo shit bitch!” then proceeds to smack you in the face and take your shit. Dont get me wrong, these guys are scum. Probably some of the worst people you will encounter. But no one ever thinks about the guy who has the nice job. The guy with the nice house and “nuclear family” with a darling trophy wife and two kids doing great in school and a nice car. The guy who goes to work every morning at 6 am. The guy who drinks those stupid mocha lattes at starbucks. While he gives off this image of a perfect guy, he is busy stealing BILLIONS of dollars from innocent people.
Here is the story of one Bernard Madoff , a once famed and brilliant mind on Wall Street. His practices in business have been cloned, duplicated and taught in some of the best business schools in the country. He was the chairman of the NASDAQ on Wall Street. He has thousands of people investing into his firm which was suspose to have over 17 billion in assets. ALL A BIG LIE. In December, Madoff was arrested after this chump snitched on himself to his sons and they went and snitch on him to the feds after they discovered the business that Madoff had been running since the 1960s was a big giant Ponzi scheme. Now you ask me, well geee Franklin, the fuck is a Ponzi scheme? Allow me to explain:
Lets say I came to you with an offer. My offer is that you give me $100,000 bucks and will “invest” your money and promise you 10% increase in your investment. You say, coooool and give it to me. I get a couple of more investors and take all your money and spend it on booze and bitches. I keep enough just incase you wish to cash out on your “interest” of 10% and fool you into thinking im actually investing your money when im buying mansions out by the cape. The more investors I get to cover the money my initial investors gave, I keep the scheme going. But the more investors I get, the more attention I give to myself and the more I have to pay back. Thus eventually Ponzi scheme burn themselves out. Thats what happen to Madoff. With his phony interest return sheets, he claim he had assets of $18 billion dollars to draw from. In reality, he had about $200 to $400 million and had no way of raising the $7 billion his investors were requesting. Thus he gave himself up. Me, I would be on an island some where chillin with stacks of your cash.
In plain english: im using money from newer investors to pay off earlier investors until i run out of money to pay my early investors.
The Ponzi scheme is named after Charles Ponzi, a Italian immigrant who migrated to Boston in early 1900s. His Ponzi scheme involved getting people to invest in his firm and he would pay people off by profiting off the exchange rate between international stamps. What did him in was that he was a showboat, a liar and niggas were stamp collecting fast enough. Plus he did an interview and was deemed financially incompetent. Feds raided his shit, and shut him down. He died penniless in a hospital in Brazil. Sucky end for a chump who was making $250,000 a day in 1920s money which would be like like a million or so give a take. I hate math.
Charles Ponzi wasnt the first guy to come up with such a scheme but its named after him because his scheme laundered sooo much money, it became nationally news. There have been many many many many ponzi scheme since his. What makes Madoff’s case so special? Well for one, normally Ponzi schemes aim at regular folks like you and me who dont have a clue about the financial world. Madoff was able to fool big time investors and banks whose sole purpose was to weed out scheme such as his. The fact he been doing it for DECADES seems to have everyone baffled. Also he never got caught by the Feds aka the Securities Exchange Commission. These losers sole purpose is to find fraudulent practices. They have been trying to figure out how this chump has been so good at getting returns for years. Well atleast 16 of them. Even with this current Recession, Madoff was boasting a 5.6% profit while the rest of the entire market has been bear and in the negative (around -38% if im not mistaken) all fucking year. Yet it took himself to bring his actions to the law. There have been people who tried to bring to light that this lame was running a huge Ponzi scheme but they were met with nothing but you’re a hater, why cant you make your firm as profitable as Madoff. Now look at these chumps. Some have gone from Maybachs to Metrocards within hours of Madoff’s arrest.
And you know what: I cant blame him. Madoff good work son. These idiots are soo quick to judge and trust a Jewish or white banker, its soo great to see these snobs get did in by one of their own. I would have done the same shit son. And I wouldnt have snitched either. I would on an island posting youtube videos with young bitches who dont speak any english making it rain all over the white sandy beaches puffing on a million dollar cigar. Blingededed the fuck out. Spelling out “THANKS YOU SUCKAS” in $100 dollar bills. You mad?
This just prove the incompetence of all these big wig Wall Street “experts” who were fooled by a greedy Jewish mastermind. Since 1960, this chump has had his hand deep in your pockets buying 55 foot yachts and homes all over the globe. Im mad I didnt think of it. And he’s not in jail!! He is under house arrest in his $7 million dollar apartment! Insanity. In conclusion, I spread this story because one, its history in the making. Two, people need to realize this system is failing. The housing sector is a burnt corpse. Credit is a joke. Jobs are being lost. And these rich people thought they were safe. HA! Good work Madoff, the Ponzi Pasty…..
