ponzi scheme

Hedge Fund Manager to Pay $405 Million to Madoff Victims

A settlement announced Sunday will bring $405 million to the clients of hedge fund manager J. Ezra Merkin who were victims of Bernard Madoff's Ponzi scheme. They include a host of charitable organizations; most will receive more than 40% of of their losses back.

Stanford Gets 110 Years for Role in $7 Billion Swindle

Former jet-setting Texas tycoon R. Allen Stanford, whose financial empire once spanned the Americas, was sentenced Thursday to 110 years in prison for bilking investors out of more than $7 billion over 20 years in one of the largest Ponzi schemes in U.S. history.

A Simple Money Move That Could Save Social Security

With so many pundits fretting about Social Security's possible collapse in 2036, it's hard to be optimistic about the entitlement program's future. But one insurance expert thinks that giving retirees a bit more flexibility could save the entire system.

Ponzi Scheme or Not, Social Security Is Going to Shrink

Social Security's trust fund is in the long, slow process of collapsing because it won't have enough funds to pay its promised benefits. Sound like a Ponzi scheme? Perhaps, but at least this "scheme" is one in which you can come out ahead -- especially if you start preparing now.

Social Security Going Bust? That's the Small Problem

The woes Social Security faces have generated plenty of worried talk lately, but even if nothing changes, it'll be solvent until 2036. But Medicare, the other major government program that retirees rely on, is on course for financial disaster years sooner. That program, of course, is Medicare, and the funding situation for the portion of its benefits that retirees receive looks even scarier than Social Security's prospects right now.

L.A. Radio Host Charged With Ponzi Scheme

An Iranian-American businessman who hosted a popular Persian language radio show called Economy Today has been indicted on charges that he robbed investors of $20 million in a Ponzi scheme than ran for six years.

Was Kris Humphries Conned By a Financial Scammer?

Kris Humphries may be mourning the death of his brief marriage to Kim Kardashian, but that may not be the only thing he has lost recently. It appears he may have been the victim of financial fraud, losing perhaps several hundred thousand dollars. Let his case be a warning to you: Here's what to watch out for.

Street Gangs Clean Up on White Collar Crime

Violent street gangs that have long focused on drugs and gun running are expanding into white collar crime. According to the FBI, a slew of gangs, including the Bloods, the Crips and the Latin Kings are branching out into mortgage fraud, identity theft, check counterfeiting and bank fraud, among other crimes.

SEC Claims Dead Money Manager Sold Fake Bonds

The Securities and Exchange Commission has sued the estate of money manager Joel David Salinas, the president of J. David Financial who died last month, and Brian Bjork, chief investment officer of Select Asset Management, for allegedly selling $50 million of fake bonds.

Fraud Files: Plenty of Blame to Go Around in the Madoff Case

It's been more than two years since Bernie Madoff's gigantic Ponzi scheme collapsed, but the blame game is just beginning. And many of the victims are jockeying for position, hoping to recover some money from other parties who might be deemed partly responsible for the fraud.

Madoff: Banks and Hedge Funds Were 'Complicit'

In a jailhouse interview with the New York Times, Madoff pointed to a failure by banks and hedge funds to investigate when his filings with the Securities and Exchange Commission didn't jibe with information that they could have obtained.

Allen Stanford to Undergo Examination by Psychiatrist

Accused Ponzi schemer Allen Stanford, whose attorney says he is unfit to stand trial on allegations of fraud, will be examined by a government psychiatrist. Federal prosecutors asked for the examination after the court-appointed defense attorney argued that Stanford is too heavily medicated to assist in his own defense at a trial set for next month, CNBC reported.

Madoff Investors Sue SEC for Incompetence

A Boston-based law firm announced a lawsuit Friday against the Securities and Exchange Commission on behalf of investors conned by Bernie Madoff. The suit brought by Kacheroo Legal Services seeks class-action status, and if it goes forward, it will be the first such suit ever.

Blogwatch: The Housing Market Is Poised to Boom

Among the day's top online stories for investors: why the housing market is ready to boom, which sector significantly outperformed the S&P over the past year, and the scoop on Warren Buffett's successor Todd Combs.

Mini-Madoff Arthur Nadel Gets 168 Months in Jail

Hedge fund manager Arthur Nadel, dubbed the "mini-Madoff", was sentenced to 168 months in jail after being found guilty of embezzling millions of dollars in a Ponzi scheme. The sentence is one month in jail for every $1 million he embezzled.

HSBC Lawsuit Drags HK Banking Shares Lower

In Asia Monday Hong Kong's Hang Seng Index fell 1.2%, dragged down by banking shares after news broke that five Taiwanese lenders are suing HSBC over its involvement with a Ponzi scheme. China's Shanghai Composite Index slid 0.5% and in Japan the Nikkei 225 Index remained virtually unchanged.

Two Years After Madoff: Avoiding Ponzi Scheme Hell

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Madoff Associate Stanley Chais Dies at 84

On Sunday, money manager Stanley Chais died at age 84, still under investigation for his involvement with Bernard Madoff. Chais channeled large amounts of investors' money to the now-notorious Ponzi schemer, and over the years extracted more than $1 billion from Madoff's fund.

Feds Seek Millions From Madoff Employee

The U.S. Attorney's office filed suit to reclaim more millions for victims of Bernard Madoff, this time seeking some $5.1 million in assets from Annette Bongiorno, an employee of Madoff for some 40 years, and her husband. The assets include over $2 million in cash plus titles to homes in New York and Florida, a Bentley, and two Mercedes.