Michael moore bernie madoff biography

Madoff founded a penny stock brokerage in , which eventually grew into Bernard L. Madoff Investment Securities.

Bernie madoff family

At the firm, he employed his brother Peter Madoff as senior managing director and chief compliance officer, Peter's daughter Shana Madoff as the firm's rules and compliance officer and attorney, and his now-deceased sons Mark Madoff and Andrew Madoff. Peter was sentenced to 10 years in prison in , [ 10 ] and Mark hanged himself in , exactly two years after his father's arrest.

On December 10, , Madoff's sons Mark and Andrew told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme, and quoted him as saying that it was "one big lie". The U. Securities and Exchange Commission SEC had previously conducted multiple investigations into his business practices but had not uncovered the massive fraud.

Bernard l. madoff investment securities llc

The Madoff investment scandal defrauded thousands of investors of billions of dollars. Madoff said that he began the Ponzi scheme in the early s, but an ex-trader admitted in court to faking records for Madoff since the early s. Madoff attended the University of Alabama for one year, where he became a brother of the Tau Chapter of the Sigma Alpha Mu fraternity, then transferred to and graduated from Hofstra University in with a Bachelor of Arts in political science.

In , Madoff founded Bernard L. Initially, the firm made markets quoted bid and ask prices via the National Quotation Bureau 's Pink Sheets. In order to compete with firms that were members of the New York Stock Exchange trading on the stock exchange's floor, his firm began using innovative computer information technology to disseminate its quotes.

The firm functioned as a third market trading provider, bypassing exchange specialist firms by directly executing orders over the counter from retail brokers. Madoff was "the first prominent practitioner" [ 53 ] of payment for order flow , in which a dealer pays a broker for the right to execute a customer's order. This has been called a "legal kickback ".