Madoff's mother tangled with the feds

[Soylent Brice]

Madoff's mother tangled with the feds
The late Sylvia Madoff was registered as a broker-dealer in the 1960s but left the business after being cited for failing to file reports.

NEW YORK (Fortune) -- Accused Ponzi schemer Bernard Madoff was not the first person in his close-knit family to run afoul of federal authorities. A broker-dealer firm registered in the name of Madoff's mother, Sylvia, was effectively forced to close by the U.S. Securities & Exchange Commission more than 40 years ago.

In August 1963, the SEC announced it was "instituting proceedings...to determine whether" 48 broker-dealers, including "Sylvia R. Madoff Gibraltar Securities," had "failed to file reports of their financial condition...and if so, whether their registrations should be revoked."

An SEC litigation release a month later announced hearings in the case of Madoff and many of the other firms in question.

Then, in January 1964, the SEC dismissed administrative proceedings against a number of the firms, including Madoff's, in what appeared to be a deal: No penalties if you promise to stay out of business.

http://money.cnn.com/2009/01/16/magazines/fortune/madoff_mother.fortune/index.htm?postversion=2009011615


on edit: does that make it a dynasty?

[kirby]

1. Runs in the familiy, so it appears... n/t

[Happyhippychick]

2. When will they investigate his sons?

[Ichingcarpenter]

3. Madoff's fund may not have made a single trade

Source: Reuters

BOSTON (Reuters) – Bernie Madoff's investment fund may never have executed a single trade, industry officials say, suggesting detailed statements mailed to investors each month may have been an elaborate mirage in a $50 billion fraud.

An industry-run regulator for brokerage firms said on Thursday there was no record of Madoff's investment fund placing trades through his brokerage operation.
That means Madoff either placed trades through other brokerage firms, a move industry officials consider unlikely, or he was not executing trades at all.

"Our exams showed no evidence of trading on behalf of the investment advisor, no evidence of any customer statements being generated by the broker-dealer," said Herb Perone, spokesman for the Financial Industry Regulatory Authority.

Each month, Madoff sent out elaborate statements of trades conducted by his broker-dealer. Last November, for example, he issued a statement to one investor showing he bought shares of Merck & Co Inc, Microsoft Corp, Exxon Mobil Corp and Amgen Inc among others.
It also showed transactions in Fidelity Investments' Spartan Fund. But Fidelity, the world's biggest mutual fund company, has no record of Madoff or his company making any investments in its funds.

Read more: http://news.yahoo.com/s/nm/20090116/ts_nm/us_madoff_tra...

[Soylent Brice]

4. saw that earlier. talk about some huge balls

or flat out stupidity of epic proportions.

[Ichingcarpenter]

5. your story adds to the mystery

Why this guy wasn't on the feds radar including the IRS.

[Soylent Brice]

6. as it goes with everything else

follow the fucking money.

i'm pretty sure some of it ended up in the hands of those who would be required to turn a blind eye.

you don't make that kind of money illegally, and as brazenly as he has, and not line a few pockets in the process.

[Dr.Phool]

7. How about his aunt?

She had a career in the bank withdrawal business. She went by the name, "Ma Barker".