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List of Madoff's Victims Keep Growing, Likely to Extend Beyond Clients

Posted Dec 15, 2008 01:37pm EST by Aaron Task in Investing, Newsmakers

The victims of the Bernie Madoff scandal continue to mount and include some of the world's biggest financial institutions, major fund of funds managers, well-heeled individuals and many charities.

Henry Blodget has compiled an exhaustive list here, but some of the biggest names include: movie mogul Steven Spielberg, New York Mets owner Fred Wilpon, New Jersey Sen. Frank Lautenberg, and real-estate magnate Mort Zuckerman.

Among the institutions, Madoff's investors included Walter Noel's Fairfield Greenwich Group, whose $7.3 billion Fairfield Sentry Ltd. invested with Madoff, HSBC, Banco Santander, Nomura, UBS, fund of fund shop Tremont Capital and many more.

Many of Madoff's victims lived in Palm Beach, Fla. which is already reporting multi-million dollar real estate listings related to the scandal, and bracing for more. Madoff also "tapped social networks in Dallas, Chicago, Boston and Minneapolis," the WSJ reports.

Some witnessing the suffering of so many wealthy individuals and firms are probably feeling a bit of schadenfreude today. There's a rising sense of populism and "eat the rich" mentality in America today, for obvious reasons.

But many people's entire net worth has been wiped out by the scam, as well as any number of philanthropic organizations. Furthermore, pressure on the fund of funds who invested with Madoff; that, in turn, is going to add to the already intense pressure on their hedge fund clients. Even if that only damages investor sentiment, it could very much affect portfolios of people who never heard of Bernie Madoff prior to last week.

If there's anything we've learned this year it's that anyone with any skin the game is interconnected to everyone else - for better or, more typically in 2008, worse.

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202 Comments

Reedersong
Reedersong - Monday December 15, 2008 01:45PM EST

Dear Paulson, Bernanke, and others: You can steal all of my money and give it to Citigroup, JP Morgan, and BOA. I am still not accepting their Mafia-rated, unsolicited credit cards. I am not taking out an auto loan from them. I am not buying a house on payments.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday December 15, 2008 01:48PM EST

SAD OUR FUND MANAGER IS DOWN.....

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday December 15, 2008 01:49PM EST

tat soup line is takin' reservations until 2011.

georgeg
georgeg - Monday December 15, 2008 01:50PM EST

And this guy is out on Bail... The only thing worse than this is the way the Gov. has followed the money they have given to the big banks. My heart goes out to the Police Officers in Woodburn. Ore. who lost there life responding to the placement of a BOMB at a BANK. Hopefully our leaders understand the publics frustration with the way they are doing our business. GOD BE WITH US.. we need you more now than before.

Kenneth
Kenneth - Monday December 15, 2008 01:55PM EST

The media has it wrong when they reported that this guy is guilty of the running the largest ponzi sceam in history. Bernanke and Paulson are running one now that makes what this guy did look like child's play.

Michael
Michael - Monday December 15, 2008 01:55PM EST

It is unfortunate that charities will loose because of this, however, I seems that people should have known better. "If it sounds too good to be true it probably is" (Mom)

Steve
Steve - Monday December 15, 2008 01:58PM EST

I'm sorry, but if your "entire net worth" is wiped out by one crooked investor, then you should take a look at yourselves. As an electrician, I have to question a quality of life that makes money on the backs of people who have a product or service to offer. Think about it. How does one trade stock certificates for food?? What does investing do to benefit the world around you, except you own self interests. Being rich, does not make one respectable. Quite the opposite, in my opinion. Don't forget the words of Jesus. It's easier to get a camel through the eye of a needle, than for a rich man to get into heaven. S

Softshoe
Softshoe - Monday December 15, 2008 01:58PM EST

Hey, don't get too uptight about the ultra rich, getting "scammed" by Little Bernie. It's all relative. Im sure they will survive,and Bernie also. JIM HSV ALA

Frank C
Frank C - Monday December 15, 2008 01:59PM EST

How could these "money savvy" people and companies have been so stupid? Rule #1 with money; don't trust ANYONE else with your money, period. If you're in a fund you call every week and do due diligence online or anywhere information is available. No one cares about your money, except you. How is it I know that without any kind of business degree and these people didn't? They aren't victims they're stupid and lazy.

T
T - Monday December 15, 2008 02:00PM EST

where does madoff get the money to post bail. He should be working as a Wall Mart greeter to put food on the table when he gets out jail

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday December 15, 2008 02:01PM EST

BETTER LOST WITH THE BET ON POUNDS TO POUNDS BOXING AT LEAST I ENJOY IT....THAN BEING ROB BY A TRUSTED MAN OF MY PENSION FUND MANAGER.

winners04
winners04 - Monday December 15, 2008 02:02PM EST

tHE BIGGEST FALLOUT OF THIS WHOLE THING IS THE EFFECT IT WILL HAVE ON USA CREDIBILITY IN THE FINANCIAL WORLD. WE ARE GOING TO BE THE LAUGHING STOCK OF THE WORLD. wE SIT HERE SO HIGH AND MIGHTY TALKING ABOUT ALL THE CORRUPTION AMD GRAFT IN OTHER COUNTRIES AND ITSS EFFECT ON THE LOW AND MIDDLE CLASS WHEN WE ARE POSSIBLY (NUMBERS WISE) ONE OF THE WORST MOST CORRUPTED SYSTEMS IN THE WORLD. THE SADDEST PART IS WHO PAYS? THE CHARITIES AND WE DO , AND WITH WHAT MONEY, WERE IN THE WORLD DO THESE GUYS FIND THE TIME AND SPEND THIS MUCH CASH! ITS TRUELY UNBEILIEVABLE. THIS IS ONLY GOING TO ADD TO THE UNREST IN OUR FINANCIAL SYSTEM AND DRIVE OFF ANY POTENTIAL FORIEGN AND DOMESTIC INVESTORS FROM INVESTING IN OUR CORRUPT SYSTEM. HOW SAD........eVER HEARD OF THE GREAT DEPRESSION? I THINK WE ARE HEADED FOR THE SUPERSIZE DEPRESSION. YES ALL YOU POLYANNA'S OUT THERE CAN SUGARCOAT THEE SITUATION ALL YOU WANT BUT ITS STILL BLACK MUD INSIDE! I DONT PLAN ON EATING ANY OF IT FOR A FEW DECADES IF THEN........

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday December 15, 2008 02:02PM EST

POUND TO POUND BOXER IS BETTER BET THAN THAN FUND........

Frank C
Frank C - Monday December 15, 2008 02:03PM EST

How could these "money savvy" people and companies have been so stupid? Rule #1 with money; don't trust ANYONE else with your money, period. If you're in a fund you call every week and do due diligence online or anywhere information is available. No one cares about your money, except you. How is it I know that without any kind of business degree and these people didn't? They aren't victims they're stupid and lazy.

Andrzej
Andrzej - Monday December 15, 2008 02:03PM EST

This guy is out on a bail which is much below 50 billion he has stolen. And his family has not been arrested yet!

Kenneth
Kenneth - Monday December 15, 2008 02:04PM EST

The media has it wrong when they reported that this guy Madoff is guilty of running the biggest ponzi sceam in history. Bernanke and Paulson can claim that title and makes what this guy did look like child's play.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday December 15, 2008 02:07PM EST

Well maybe the Mayans are correct for the 2012 doomsday.A comet will fall on Wall Vegas & a asteroid on Washington D.C.,Problem solved!

Yahoo! Finance User
Yahoo! Finance User - Monday December 15, 2008 02:08PM EST

This is the final results of the short-sighted, greedy investors caught up with extremely short-term, spectacular returns. There is no such thing as extremely short-term, spectacular returns. People just squandered their money.

Joseph
Joseph - Monday December 15, 2008 02:08PM EST

sad sad day...

lefty
lefty - Monday December 15, 2008 02:10PM EST

they got better returns because they deserved them - little people had no acess to these investment criminals justice ???

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