102: Eugene Soltes – Unraveling a $65-Billion Ponzi Scheme and Notorious Cases of Insider Trading
Chat With Traders
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The SEC Overlooked Bernie Madoff's Ponzi Scheme
Some thought that one way to explain the fantastic returns of his investment management clients is that he's essentially using the data in orders from his brokerage business to allow people to front run. So the SEC went in and basically brought him in and questioned him and looked into whether it was front running. At the end of that they actually asked him where all the assets were being capped at this depository bank and he actually gave them their account number. It would have been a problem of missing zeros. He had in the order of a couple million dollars of securities there where one hedge fund that was invested in him should have had several billion dollars in that account.
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