Friday, March 13, 2009

More on Madoff's 177 Billion USD opeation emerges from insiders

Madoff's computerized trading system was unique....and the scam could be as high as 177 Billion USD ...

More on Madoff's 177 Billion USD opeation emerges from insiders

New York City - WMR has been informed by former Madoff Investment Securities sources that jailed Ponzi scammer Bernard Madoff's wife Ruth revealed as early as September 2008 that her husband was "under great stress." However, the source also revealed that Mr. Madoff "thrived under great stress."

FBI investigators reportedly asked Madoff employees after Madoff's arrest on December 11, 2008, whether Madoff had been "acting strange" before the arrest. Employees were also asked to provide the FBI with a psychological profile of Madoff.

A Madoff Investment Securities insider told WMR, "Bernie's mission was to keep the company he created alive with infusions from strangers. They turned out to suffer collateral damage." The source added, "Bernie could not give customers bad news."

Madoff insiders also described how the Ponzi scammer formed his company in 1961. Madoff began his firm with a mere $5,000 in capital. Madoff was not able to gain a seat on the New York Stock Exchange (NYSE) because of the prohibitive cost of $250,000. Bypassing the NYSE, Madoff developed over-the-counter (OTC) trades and "back doored" trading into the NYSE. Madoff first used card punch machines in the OTC process, progressed to magnetic tape computers, and then employed newer, state-of-the-art technology....

WMR also learned that the computer systems engineer for Madoff who developed Madoff Investment Securities computerized trading system used proprietary software and, more oddly, proprietary hardware. In 1999, Madoff initiated the development of a top secret new trading system called Primex, which attracted the interest of NASDAQ, where Bernard Madoff served as chairman and his brother Peter served as a board member. The computer engineer died a few years ago in her mid-fifties of what was described by a colleague as a "fast-acting" cancer.

WMR learned that Madoff was somewhat incensed about the high cost of gaining a seat on the NYSE. Actor Rick Jason, who co-starred with Vic Morrow in the TV series "Combat," actually had a seat on the NYSE that was bought for him by Jason's father. That made Madoff all the more determined to bypass the expensive NYSE seat requirement to carry out trades. Jason reportedly shot himself to death on October 16, 2000.

When Madoff was considering selling his firm to an unnamed suitor in the late 1990s, WMR was told by a firm insider that one reason Madoff was hesitant to sell was that even during that time frame he was concerned that if his company's books came under scrutiny from a sale that the company would "crash."

WMR also learned that a close associate of one of Madoff's top corporate officers was involved in trying to obtain a U.S. State Department contract for Halliburton, the firm once headed by former Vice President Dick Cheney. The individual in question reportedly was working with Halliburton's office in Baghdad, Iraq.

A Madoff firm source also revealed to WMR that American International Group's (AIG)/CIA London office, which reportedly lost some $500 billion, was engaged in an "economic warfare" scheme against countries of the former Soviet Union. The operations coincided with the funding by George Soros/CIA of various campaigns to oust governments in Georgia, Ukraine, Belarus, Moldova, Kyrgyzstan, and even Russia itself....

WMR conducted interviews of Madoff sources in secure location next to the Brooklyn Bridge.

WMR also learned additional details of events that transpired the day before Madoff was arrested, December 10, 2008. Madoff unusually switched his firm's annual Christmas Party from its normal December 17 date to December 10. Not only was that seen as unusual by Madoff employees but so, too, was the fact that Madoff's two sons, Andrew, who ran a spin-off called Madoff Energy, and Mark, were not present at the party. Earlier in the day, both had reportedly spoken to FBI agents about their father's Ponzi scheme activities....

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