Inside these posts: Ponzi scheme

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Trustee: Citi shopped Madoff to other banks

Citigroup Inc. tried to pass its exposure to Bernard Madoff to other banks just months before his epic fraud was revealed, the Madoff trustee said in a lawsuit accusing a second major U.S. bank of unsavory dealings with the financier.

Trustee Irving Picard said red flags about Bernard L. Madoff Investment Securities LLC were apparent to Citi as early as 2005, according to court papers unsealed Monday. The lawsuit seeks $425 million from the bank. Get the full story »

Madoff trustee sues Mets’ owner to recoup $300M

The owners of the New York Mets were accused of reaping $300 million of fictitious profits from Bernard Madoff’s record Ponzi scheme, a lawsuit by the trustee seeking money for Madoff’s victims said. Get the full story »

Downers Grove swindler gets 16 years in Ponzi scheme

David Hernandez’s lifetime of lying has caught up to him, said a federal judge who sentenced the Downers Grove man Friday to more than 16 years in prison for swindling more than 250 people out of $6.4 million.

Hernandez, best known for starting an Internet-based sports talk show with radio personality Mike North, apologized to his fraud victims in a rambling, tearful statement to U.S. District Judge Robert Gettleman. Hernandez pleaded for sympathy because he claims to suffer from mental illness brought on by childhood abuse. Get the full story »

Massachusetts man charged in $9.6M fraud

A Massachusetts man is accused defrauding more than 50 investors by  running a Ponzi-style scheme with their $9.6 million.

Randy M. Cho, 39, told investors he was a self-employed securities trader who had a special relationship with Goldman Sachs and could buy discounted shares of well-known companies such as Google, Facebook and Rosetta Stone before their initial public offerings,  according to court documents. Get the full story »

Feds charge more than 500 in Ponzis, frauds

U.S. Attorney General Eric Holder announces the results of "Operation Broken Trust." (Chip Somodevilla/Getty)

U.S. officials said Monday they have charged more than 500 people in what they dubbed the largest-ever nationwide sweep of scam artists preying on individual investors.

The announcement comes as federal agencies and the Obama administration are facing pressure to punish big-name companies and individuals for their role in the financial mess. So far, the U.S. has won few high-profile cases, compared with the aftermath of the savings and loan crisis and the dot-com bust. Get the full story »

Madoff victims’ trustee sues JP Morgan for $6.4B

The trustee seeking money for victims of Bernard Madoff’s scheme sued JP Morgan Chase & Co. for more than $6 billion on Thursday, claiming the bank enabled his massive fraud.
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UBS sued for $2B for role in Madoff scam

The trustee seeking to recover money for defrauded Bernard Madoff investors has sued UBS AG and others for more than $2 billion, accusing them of collaborating in the imprisoned swindler’s massive Ponzi scheme.

UBS was accused of assisting Madoff’s fraud by sponsoring foreign feeder funds that sent client money to the once-respected money manager, lending them “an aura of legitimacy” while shielding itself from liability through secret side agreements. Get the full story »