Madoff investment scandal Madoff investment scandal The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008. In December of that year, Bernard Madoff, the former NASDAQ Chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC, admitted that the wealth management arm of his business was an elaborate Ponzi scheme. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960, and was its chairman until his arrest. The firm employed Madoff's brother Peter as senior managing director and chief compliance officer, Peter's daughter Shana Madoff as rules and
Fraudulent trading trading is normally a requirement to establish wrongful trading, but not fraudulent trading). The effect of a successful application for fraudulent trading varies between different legal systems. In some countries, the assets contributed by the directors are treated as general assets which may be taken by any secured creditors who may have a security interest which attaches to all the company's assets (characteristically, a floating charge). However, some countries have "ring-fenced" payments made for fraudulent trading so that they are made available to the pool of assets for unsecured creditors. Fraudulent trading is entirely separate and distinct from "insider trading",