Bernie Madoff Ponzi schemeIt has been two years since Bernie Madoff's $60 billion scheme to defraud investors was unmasked. It it was pretty clear almost immediately that his kind of fraud -- a Ponzi scheme -- was likely perpetrated by many others. Indeed, in the years since there have been dozens of so-called mini-Madoffs uncovered, each with their own brand of Ponzi scheme.

Just this past week, it was reported that Hall of Fame Denver Broncos quarterback John Elway lost millions in an alleged Ponzi Scheme.

Michael Goldberg, an attorney with Akerman Senterfitt in Fort Lauderdale, Fla., is a court-appointed receiver for several Ponzi schemes. He is responsible for liquidating remaining assets and overseeing a claims process to distribute any remaining or recovered funds to investors.


Unwinding a Ponzi scheme and returning funds to investors is a long and difficult process, says Goldberg. "Some people get no money back, some get it all, but it can take upwards of 10 years."

As Goldberg defines it, a Ponzi scheme is an investment vehicle where new money is used to pay returns to old investors. As long as there is new money coming in, a Ponzi scheme can last for years. But when there is a liquidity crunch, like there was in 2008, new money freezes up, investors start asking questions and demanding their money back and the scam is quickly unmasked. "A ponzi scheme needs cash to continue," says Goldberg. "That's the fuel."

How does one avoid getting caught in a Ponzi scheme? "Ask yourself, is it too good to be true," says Goldberg. "Someone can not continuously beat the market return year after year for 20 years in a row." If you suspect you are in one, call the Securities and Exchange Commission, he says. "They can tell pretty quickly."

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driveinpeace

By 2013 we want 1 millions Americans aware of the money and banking system in this country that has robbed us blind. Those unaware are unaware of being unaware Take your money serious or it will be taken from you or worst you will be in a similar position to Madoff and friends like him http://driveinpeace.com/awareness.htm

November 07 2010 at 9:23 AM Report abuse +1 rate up rate down Reply
juliana

I wish somebody would get back my lost money for me that disappeared from my acct. at Raymond James.

October 18 2010 at 2:12 AM Report abuse +1 rate up rate down Reply
millyoob

That is the EXACT definition of the Social Security Administration...

October 17 2010 at 7:44 PM Report abuse +2 rate up rate down Reply
2 replies to millyoob's comment
hawaiiana

Be sure not to cash Social Security checks. If you are convinced it is a Ponzi scheme you'll be on the hook for every penny you took. Best thing to do is endorse them to me and I'll cash them. I have no trouble spending my Social Security check as it covers my mortgage and a little more besides. You folks, maybe tea baggers, who scream Ponzi, Socialist, Communist, etc. are having your day, but it will not last

October 17 2010 at 7:56 PM Report abuse -2 rate up rate down Reply
dterraman

hawa.....thats ok, embrace the beast.....for it is good., trust the beast, for it loves you

October 18 2010 at 5:49 AM Report abuse rate up rate down Reply
miamigirl2000

WHO WANTS TO BUY UNAUTIED SENIOR NOTES? Banks facing probe Foreclosures eyed By JAMES COVERT October 11, 2010 "More than two-thirds of US state attorneys general plan to launch a joint probe this week into charges that some banks used bogus paperwork to kick struggling borrowers out of their homes, according to reports. "Financial giants including GMAC, JPMorgan Chase and Bank of America are facing a slew of allegations that the lenders forged documents, faked Social Security numbers, covered up paper trails and sliced and diced mortgages so many times that nobody really knows who owns them." http://www.nypost.com/p/news/business/banks_facing_probe_4oRvHfFgEqGqxACs3SsjQO#ixzz12d7oqVHB M/I HOMES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements (the financial statements) of M/I Homes, Inc. and its subsidiaries (the Company) and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. The financial statements include the accounts of M/I Homes, Inc. and its subsidiaries" "M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets at June 30, 2010 (Unaudited) and December 31, 2009 3 Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2010 and 2009 4 Unaudited Condensed Consolidated Statement of Shareholders Equity for the Six Months Ended June 30, 2010 5 Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2010 and 2009 6 Notes to Unaudited Condensed Consolidated Financial Statements" "Holders who validly tender their Senior Notes at or prior to 5:00 p.m., New York City time, on October 27, 2010, unless extended by the Company in its sole discretion (such date and time, as the same may be extended, the Early Tender Premium Deadline), and whose Senior Notes are accepted for purchase will receive the total consideration of $1,045.00 per $1,000 principal amount of Senior Notes, which is the sum of the tender offer consideration of $1,015.00 per $1,000 principal amount of Senior Notes and the early tender premium payment of $30.00 per $1,000 principal amount of Senior Notes. "...... "I, Robert H. Schottenstein, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of M/I Homes, Inc. for the fiscal quarter ended June 30, 2010; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;" "Credit Agreement dated June 9, 2010 by and among M/I Homes, Inc., as borrower, the lenders party thereto, PNC Bank, National Association, as administrative agent for the lenders, JPMorgan Chase Bank, N.A. and The Huntington National Bank, as co-syndication agents, and Fifth Third Bank and US Bank National Association, as co-documentation agents (Incorporated herein by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on June 14, 2010.)"

October 17 2010 at 6:31 PM Report abuse +1 rate up rate down Reply
miamigirl2000

SEC probes mortgages By MARK DeCAM Last Updated: 3:43 AM, October 16, 2010 "The Securities and Exchange Commission has launched an investigation into the shoddy foreclosure practices of the nation’s mortgage lenders" "Attorneys general in all 50 states have also launched an investigation into whether lenders filed flawed paperwork to foreclose on homes"........ Benchmark Title Agency, Inc. "Schottenstein Zox and Dunn established Benchmark Title, a title insurance agency, to provide quality and timely title insurance services which are necessary to the acquisition, disposition and financing of real estate, particularly commercial development. " "Located in both Tampa and Longwood (Orlando), Florida and Columbus, Ohio, Benchmark Title Agency provides title examinations, issuance of title insurance commitments and policies, residential and commercial closings, escrows and educational seminars." All services are fully automated and the agency is underwritten exclusively by Commonwealth Land Title Insurance Company – one of the largest underwriters in the U.S. "

October 17 2010 at 6:27 PM Report abuse +1 rate up rate down Reply
rtutbucks

THE MADOFF PONZI SCHEME IS SMALL POTATOES, THE BIGGEST PONZI SCHEME OF ALL TIME IS SOCIAL SECURITY

October 17 2010 at 3:50 PM Report abuse rate up rate down Reply
tmoschetti

I don't believe that Daily Finance should use contributors who refuse to provide contact information to rebut what is often biased propaganda as was her Ponzi scheme article where she left out the biggest Ponzi scheme ever!

October 17 2010 at 1:58 PM Report abuse +1 rate up rate down Reply
shroyer100

Ponzi Scheme= Social Security. Hello?!

October 17 2010 at 1:53 PM Report abuse rate up rate down Reply
tmoschetti

It's been 70+ years since the bigest Ponzi scheme ever, SOCIAL SECURITY, began. If I'm not mistaken the first woman to collect SS benefits put in 20-30 dollars and received about $300 in benefits. Many of todays contributors will get nothing! The Demo-Rats Ponzi scheme dwarfs Madoff, but unlike Madoff who only ripped off the wealthy, SOCIAL SECURITY rips off mostly the lower and middle classes! And they are the ones the Demo-Rats profess to care about more than life itself!

October 17 2010 at 1:51 PM Report abuse rate up rate down Reply
joaoretiree

The biggest PONZI SCHEME of all times: SOCIAL SECURITY. Who should we prosecute for that and who should go to jail????

October 17 2010 at 11:44 AM Report abuse rate up rate down Reply