The world are full of all kind of crooks. Watch out for those elegantly dressed in Armani suits, suave and can effortlessly smooth-talked you into parting with your fat wallet without a hint of suspicion because you are dumb enough to judge a book by its cover.
Hedge funds are now under scrutiny for fraudulent practices and are likely to be the next big financial meltdown dragging the world into bigger financial chaos.
Malaysia is no exception to "Skim Cepat Kaya" or "Ganda Wang Anda" get rich quick pyramid scams.
The Americans are no less inventive when it comes to dirty rotten scoundrel's inventiveness to cheat the public.In fact he is even smarter than the few Ahmads and Chongs that got caught in this country and charged in court for money laundering.
The Malaysian scams are crude by comparison to the American sophisticated scams called hedge funds.
Suggested reading:
Hedge funds 'facing credit storm'
US bankers facing fraud charges
Credit crisis claims hedge fund
Below is an article from BBC on one such fantastic scam that went undetected for many years and was only exposed by the culprit himself.
$50bn fraud charge at hedge fund
 The Madoff fraud could be one of the biggest yet |
The former chairman of the Nasdaq stock market has been arrested and charged with securities fraud, in what may be one of the biggest fraud cases yet.
Bernard Madoff ran a hedge fund which ran up $50bn (£33.5bn) of fraudulent losses and which he called "one big lie", prosecutors allege.
Mr Madoff is alleged to have used money from new investors to pay off existing investors in the fund.
His lawyer said he would fight to get through these "unfortunate events".
The 70-year-old has been released on $10m bail.
High-profile victims
Bramdean Alternatives has emerged as a victim of the fraud, with 9.5% of its investments exposed to the New York broker, it said in a statement on its website.
Nicola Horlick, the high profile fund manager labelled superwoman by the UK press, is the company's nominated fund manager.
 |  The collapse of Madoff is likely to accelerate the disappearance of hedge funds  Robert Peston  |
In an interview earlier this year with the Financial Times, Ms Horlick praised Mr Madoff.
"He is someone who is very, very good at calling the US equity market," she said.
She added: "This guy has managed to return 1% -1.2% per month, year after year after year."
'Pyramid scheme'
Mr Madoff founded Bernard L.Madoff Investment Securities in 1960, but also ran a separate hedge fund business.
According to the US Attorney's criminal complaint filed in court, Mr Madoff told at least three employees on Wednesday that the hedge fund business - which served up to 25 clients and had $17.1bn of money under management - was a fraud and had been insolvent for years, losing at least $50bn.Read more........
1 comment:
The Americans are no less inventive when it comes to dirty rotten scoundrel's inventiveness to cheat the public.In fact he is even smarter than the few Ahmads and Chongs that got caught in this country and charged in court for money laundering.
The Infininity
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