Also in this playlist...
This transcript is automatically generated
What they say that it may be the biggest swindle ever by a single man ever in the history of Wall Street.
This statesman of the trading in -- street Bernard made -- charged now with defrauding investors to the tune of fifty billion.
He kept the alleged fraud going for years taking it to quote epic proportions this guy could not have been more respected.
In treating circle down and lower Manhattan.
And now some of his victims are bankrupt from individual to hedge funds to charities.
And made off massive fraud.
Could soon affect your life.
Joining us out the co founder of the -- funds dot com Jones Baxter I don't.
All right so this guy you know we believe this when it first we're and -- you know another another you know alleged criminal.
But this thing is massive.
Bigger than Enron -- tire companies.
Had they're dealt with him charities going under as a result of the fraud perpetrated.
Just before we get that in the -- of it just just explain it very simple terms.
-- -- brought it wouldn't do.
What was -- the biggest threat is all true it's the biggest fraud ever perpetrated in history of the world not just on Wall Street but all the Ponzi schemes and chain letters and all the other scams and have been existing for hundreds of years and other countries in this country.
He was saying to people they were earning a return.
A very steady seven to took 12% a year.
Possibly giving some of them Jackson State income but what in a classic Ponzi scheme you're just giving people money that -- -- -- raising from other investors there is no.
Real underlying investment is making money like say your mutual fund.
You're just pretending and fabricating returns and paying off current investors who -- investors and what that does people like -- you could earn ten or 12% -- risk -- And then more monies are highly empowering NSA and keep it going in this case conceivably up to two decades the length of that is so amazing in itself but as amazing as the amount of money in.
All right -- -- just target understands this and made up he -- a money management firm in addition of some other things so let's say I gave him let's say -- imaginary world I have a million dollars.
And I gave made off the million dollars.
And then for your pass I want a return I want my money back plus you know lots of profit and then he would go to hammer anything hammer.
How do like invest two million dollars with mixed and it he gave me my million early gimme hat Kennedy's entire two million right.
The -- what is -- -- conceivably your million might have turned in say two million if you did want it all back.
-- would have to raise the money from some other mark or investor like cameras and all the it is very returns -- would invest two million he give it to -- you.
You think you've done well incidentally -- it's all busted you might have to give you two million back.
To other investors all yeah I have heard before you let it pay tax on those phantom games which didn't even exist so that her and all kinds of price -- But the thing -- just got to -- was eight this guy's running a money management service that's something a lot of people actually use people to advise them on how to invest their money where.
And beat that the Securities and Exchange Commission.
Never investigated this particular area of his business there was almost no oversight of it which is -- web enabled him to get away with fifty billion dollar worth of fraud allegedly.
How how does this affect people out there right now -- thinking and it is times like these and using money manager.
Well first of all just be clear this is a sort of part of the world where there's not a lot of regulation because it deals with high net worth investors global money managers hedge funds fund of funds this is not mutual funds and ordinary small time brokerage accounts that you and I might deal -- -- want to scare everybody this is a certain world that did exist in the SEC generally.
Doesn't look very closely -- it because the idea is all these sophisticated bankers.
They're doing to -- they're looking it over they know it's not a fraud which obviously was not the case here many sophisticated banks lost a fourteen clients' money.
In this complete Ponzi -- south.
Well he allegedly admitted to his son's that the fund was -- all just one big lie it was finished that the fund had absolutely nothing and now this guy.
Is out on ten million dollars worth of bail wonder what will happen there to I mean.
They -- just as some really didn't know anything that's what I'm kind of waiting.
They say confessed to his -- that is in his son's lawyer says that that you turn that he that they they were the ones who turned and then anyway it's a fascinating case.
Let's hope it doesn't trickle down to foreign main street -- Thank you.
Thanks -- I was the chairman of NASDAQ.
Total income communities chairman of NASDAQ complete -- what they said that it is is in he never lost if you invest within but I never lost what they did the holy Grail this invest make up the monthly statements every day Senegal doing drag.
It's easy yeah maybe but.
Filter by section