History of Bernie Madoff in Timeline
Bernie Madoff was an American financier who orchestrated the largest Ponzi scheme in history, defrauding investors of approximately $65 billion. He held a prominent position as chairman of the Nasdaq stock exchange. Madoff's firm consisted of a stock brokerage and an asset management division, with the fraudulent Ponzi scheme operating within the latter. The scheme went undetected for years, paying returns to older investors with money from new investors, rather than actual profits. Madoff's crimes led to his arrest in 2008, and in 2009, he received a 150-year prison sentence.
April 29, 1938: Birth of Bernie Madoff
Bernie Madoff was born on April 29, 1938, in Queens, New York City.
1956: Madoff Graduates High School
Bernie Madoff graduated from Far Rockaway High School in 1956.
1958: Ruth Alpern Graduates High School
Ruth Alpern graduated from high school in 1958.
November 28, 1959: Madoff's Marriage
Bernie Madoff married Ruth Alpern on November 28, 1959.
1960: Madoff Graduates from Hofstra University
Bernie Madoff graduated from Hofstra University with a Bachelor of Arts in political science in 1960.
1960: Madoff Starts His Firm
Bernie Madoff started his firm, Bernard L. Madoff Investment Securities LLC, in 1960 with $5,000 of his own earnings and a loan from his father-in-law.
1960: Founding of Bernard L. Madoff Investment Securities
In 1960, Bernie Madoff founded Bernard L. Madoff Investment Securities, a penny stock brokerage that would later become the center of his fraudulent activities.
1964: Birth of Mark Madoff
Mark Madoff, Bernie Madoff's son, was born in 1964.
1964: Possible Early Stages of Fraud
While Madoff claimed his fraud began in the early 1990s, some evidence suggests it may have started much earlier, possibly as early as 1964. His long-time assistant's testimony and Madoff's own statements hint at the possibility of the fraud being underway almost from the beginning of his firm's operations.
1966: Birth of Andrew Madoff
Andrew Madoff, Bernie Madoff's son, was born in 1966.
1973: Carmine Persico Becomes Colombo Crime Family Boss
Carmine Persico became the boss of the Colombo crime family in 1973. It is believed he later protected Madoff in prison.
1980: Madoff Purchases Montauk Residence
Bernie Madoff purchased an ocean-front residence in Montauk, New York, in 1980.
1986: Mark Madoff Graduates University of Michigan
Mark Madoff graduated from the University of Michigan in 1986.
1988: Andrew Madoff Graduates Wharton
Andrew Madoff graduated from the University of Pennsylvania's Wharton Business School in 1988.
1991: Start of Political Contributions
From 1991, Bernie and Ruth Madoff began contributing to federal political candidates, parties, and committees.
1991: Madoff's Ponzi Scheme Begins
Madoff confessed that his Ponzi scheme commenced in 1991. He admitted that client funds were never legitimately invested, but instead deposited into his personal account, using a "robbing Peter to pay Paul" method to handle withdrawals.
1991: Madoff's Philanthropy and Political Donations
Since 1991, Madoff and his wife donated over $230,000 to political causes, mostly to the Democratic Party. He also made significant contributions to various non-profit organizations, some of which also invested with his firm.
1992: First Fraud Investigation
In 1992, Madoff's name surfaced in a fraud investigation involving Avellino & Bienes, related to investments and fundraising practices connected to Madoff. The SEC closed the case after investors were repaid.
1992: Start of SEC Investigations
Since 1992, the SEC conducted six investigations into Madoff's activities, all of which failed to uncover the Ponzi scheme.
1997: Weinstein Leaves Hadassah
In 1997, Sheryl Weinstein left her position as Hadassah's chief financial officer. At this point, Hadassah had invested $40 million with Bernie Madoff.
1999: Markopolos Suspects Fraud
In 1999, financial analyst Harry Markopolos quickly concluded that Madoff's reported returns were mathematically impossible and suspected fraud.
2000: Markopolos' First Warning to SEC
Harry Markopolos first alerted the SEC's Boston office about his suspicions regarding Madoff's fraudulent activities in 2000.
2000: Madoff Brothers Donate to SIFMA
From 2000 to 2008, the Madoff brothers donated $56,000 to SIFMA and sponsored industry meetings.
2001: Early Concerns and Suspicions
As early as 2001, Harry Markopolos raised concerns about Madoff's strategy, noting impossible trading volumes on the Chicago Board Options Exchange. Hedge-fund manager Suzanne Murphy also avoided investing with Madoff due to doubts about his trading activity.
2001: Markopolos' Second Warning to SEC
Harry Markopolos again warned the SEC's Boston office about Madoff in 2001.
2001: Early Doubts About Madoff's Operations
In 2001, Harry Markopolos questioned the feasibility of Madoff's strategy due to the sheer volume of options trading it would require. Hedge fund manager Suzanne Murphy also expressed skepticism about the legitimacy of Madoff's trading activity.
2001: Madoff Firm Incorporated
In 2001, after 41 years as a sole proprietorship, Madoff's firm was incorporated as a limited liability company.
March 2003: Andrew Madoff's Lymphoma Diagnosis
Andrew Madoff was diagnosed with mantle cell lymphoma in March 2003.
2003: Swanson Meets Shana Madoff
Eric Swanson, an assistant director at the SEC, met Shana Madoff while investigating Bernie Madoff and his firm in 2003.
2003: Madoff Claims He Could Have Been Caught
Madoff claimed he could have been caught in 2003 if SEC investigators had examined his stock records and checked with the Depository Trust Company.
2004: Walker-Lightfoot Investigates Madoff
In 2004, SEC lawyer Genevievette Walker-Lightfoot found inconsistencies in Madoff's operations and recommended further investigation. However, she was directed to stop her work on Madoff.
2005: SEC Concludes Madoff Investigation
The SEC concluded its investigation into Madoff in 2005.
2005: Markopolos Contacts SEC New York
In 2005, Harry Markopolos presented evidence of Madoff's fraud to Meaghan Cheung at the SEC's New York office.
2005: Increased Political Contributions
From 2005 to 2008, Bernie and Ruth Madoff increased their annual contributions to the Democratic Senatorial Campaign Committee to $25,000.
2006: Swanson and Shana Madoff Engaged
Eric Swanson left the SEC and became engaged to Shana Madoff in 2006.
2007: Swanson and Shana Madoff Marry
Eric Swanson and Shana Madoff married in 2007. Swanson claimed he didn't participate in any Madoff investigations while involved with Shana.
2007: Markopolos' Final Warning
Harry Markopolos provided further evidence of Madoff's fraudulent activity to the SEC's New York office in 2007, still to no avail.
January 2008: Andrew Madoff Chairs Lymphoma Research Foundation
Andrew Madoff became chairman of the Lymphoma Research Foundation in January 2008.
December 10, 2008: Madoff Confesses to Sons
On December 10, 2008, Bernie Madoff confessed to his sons, Mark and Andrew, that his asset management business was a massive Ponzi scheme.
December 11, 2008: Bernie Madoff's Arrest
On December 11, 2008, Bernie Madoff was arrested and charged with securities fraud, marking the unraveling of his massive Ponzi scheme.
December 2008: Peter Madoff Resigns from SIFMA
Peter Madoff resigned from SIFMA's board of directors in December 2008 following the news of his brother's Ponzi scheme. Both he and Andrew Madoff had received awards from SIFMA that year. Shana Madoff also resigned from her SIFMA position.
December 2008: Madoff Confesses and Faces Financial Collapse
In December 2008, Madoff confessed to a senior employee, believed to be one of his sons, that he was facing $7 billion in redemptions. His scheme, which involved depositing investor funds into a JPMorgan Chase account and using it for redemptions, was collapsing. Despite recent cash infusions, funds were insufficient. His Chase account had dwindled significantly, and he couldn't secure loans. By December 3, he admitted his situation to Frank DiPascali, and on December 9, to his brother Peter.
December 2008: Madoff Arrested and Bail Revoked
After posting $10 million bail, Madoff was placed under house arrest in his Upper East Side apartment in December 2008. However, following his guilty plea on March 12, 2009, Judge Denny Chin revoked his bail due to flight risk concerns, citing his age, wealth, and the severity of the potential sentence. He was then remanded to the Metropolitan Correctional Center. Prosecutors initiated asset forfeiture proceedings targeting Madoff's substantial real and personal property holdings.
2008: Doubts and suspicions around Madoff's operations
In 2008, major derivatives firms refused to trade with Madoff due to concerns about his figures. Major Wall Street firms also avoided investing with him, with some executives suspecting his operations were not legitimate. Further doubt arose from the perceived inadequacy of his small, three-person accounting firm to handle the growing volume of Madoff's accounts.
2008: Madoffs Attempt Suicide
In 2008, after the exposure of his fraud, Bernard and Ruth Madoff attempted suicide by overdosing on pills on Christmas Eve.
2008: Madoff Securities' Market Maker Status
In 2008, Madoff Securities was the sixth-largest market maker in S&P 500 stocks.
2008: Hadassah Withdraws Funds
By the end of 2008, Hadassah had withdrawn over $130 million from their Madoff accounts, with a remaining value estimated at $90 million at the time of his arrest.
2008: End of Political Contributions
By 2008, the Madoffs had contributed approximately $240,000, including substantial donations to the Democratic Senatorial Campaign Committee. After Madoff's arrest, some contributions were returned.
2008: Long-Running Fraudulent Practices
By 2008, Madoff's fraudulent practices had been ongoing for a significant period. Longtime employees like Bongiorno described doing the same fraudulent activities in 2008 as when she first joined the firm, suggesting the scheme was well-established.
February 2009: Madoff Accepts Lifetime Ban and Family Sued
In February 2009, Madoff agreed to a lifetime ban from the securities industry. Additionally, trustee Irving Picard sued Madoff's sons, brother, and niece for $198 million, alleging negligence and breach of fiduciary duty related to over $80 million in compensation they received since 2001.
March 12, 2009: Madoff Pleads Guilty
On March 12, 2009, Bernie Madoff pleaded guilty to 11 federal felonies, admitting to orchestrating the largest Ponzi scheme in history.
March 13, 2009: Madoff's Assets Revealed
On March 13, 2009, a court filing by Madoff revealed that he and his wife had assets worth up to $126 million and a business interest valued at $700 million. This disclosure came as Sheryl Weinstein, a former Hadassah CFO, testified against Madoff, detailing a past affair and Hadassah's substantial investments with him.
March 2009: Madoff Admits to Ponzi Scheme
During his March 2009 guilty plea, Madoff confessed to operating a Ponzi scheme. He admitted to depositing client funds into a bank account instead of investing them, and using this money to pay out other clients' redemptions.
March 20, 2009: Appeal for Release Denied
On March 20, 2009, an appellate court denied Madoff's appeal to be released from jail and return to home confinement while awaiting sentencing.
June 17, 2009: Madoff Discusses SEC Connections
On June 17, 2009, Madoff referred to SEC Chairman Mary Schapiro as a "dear friend" and Commissioner Elisse Walter as a "terrific lady." The SEC faced criticism for its failure to detect the fraud despite multiple warnings.
June 22, 2009: Request for Lenient Sentence
On June 22, 2009, Madoff's lawyer requested a 12-year sentence, citing Social Security Administration life expectancy tables that predicted Madoff would only live for 13 more years.
June 26, 2009: Asset Forfeiture and Sentencing Recommendation
On June 26, 2009, a judge ordered the forfeiture of $170 million in Madoff's assets. Prosecutors sought a 150-year prison sentence. Madoff's wife, Ruth, agreed to forfeit $85 million, retaining $2.5 million. This agreement allowed authorities to continue pursuing her funds. Massachusetts regulators also accused her of withdrawing $15 million from company accounts before Madoff's confession.
June 29, 2009: Madoff Sentenced to 150 Years
On June 29, 2009, Bernie Madoff was sentenced to 150 years in prison for his crimes.
September 2009: Madoff's Properties Auctioned
Bernie Madoff's homes were auctioned by the U.S. Marshals Service in September 2009.
September 27, 2009: Estimated Losses and Clawback Lawsuits
On September 27, 2009, David Sheehan, chief counsel to trustee Picard, estimated that $36 billion was invested in Madoff's scam, with $18 billion returned and $18 billion missing. Around half of the investors received more than their initial investments. Withdrawals in the final six years were subject to "clawback" lawsuits.
October 13, 2009: Madoff's Prison Altercation
On October 13, 2009, Madoff was involved in his first prison fight with a fellow inmate. The stress of incarceration reportedly caused him skin problems.
October 2009: Lawsuit Against Madoff Family Members
In October 2009, a civil lawsuit was filed by trustee Irving Picard against Peter, Andrew, and Mark Madoff, alleging fraudulent financial transactions.
November 2009: Madoff's Accountant Pleads Guilty
In November 2009, David G. Friehling, Madoff's accountant, pleaded guilty to multiple charges, including securities fraud and obstruction of the IRS, admitting he rubber-stamped Madoff's filings instead of auditing them.
December 18, 2009: Madoff Hospitalized for Facial Injuries
On December 18, 2009, Madoff was taken to Duke University Medical Center for facial injuries, with varying reports about their severity and cause, including a possible altercation with another inmate.
December 24, 2009: Madoff Denies Assault
On December 24, 2009, Madoff signed an affidavit stating he had not been assaulted and was hospitalized for hypertension.
December 11, 2010: Mark Madoff's Suicide
On December 11, 2010, Bernard Madoff's son, Mark, was found dead in his New York City apartment. His death was ruled a suicide by hanging.
2010: Death of Mark Madoff
Bernie Madoff's son, Mark, died by suicide in 2010.
2010: Death of Mark Madoff
Mark Madoff died in 2010.
May 4, 2011: Total Losses and Recovered Funds
On May 4, 2011, trustee Picard stated that the total amount owed to Madoff's customers was $57 billion, with only $17.3 billion actually invested. Although $7.6 billion was recovered, only $2.6 billion was available for victims due to pending lawsuits. The IRS allowed investors to claim tax deductions for their losses, treating them as business losses.
November 2011: Kugel Pleads Guilty
In November 2011, David Kugel, a former Madoff employee, admitted to creating false account statements for clients, pleading guilty to his role in the scheme.
2012: Peter Madoff Sentenced
In 2012, Bernie Madoff's brother, Peter, was sentenced to 10 years in prison for his involvement in the Ponzi scheme.
December 2013: Madoff Suffers Heart Attack
Bernie Madoff suffered a heart attack in December 2013 and was reported to be suffering from end-stage renal disease.
January 2014: Madoff Claims Kidney Cancer
In January 2014, Bernie Madoff claimed to have kidney cancer in an email to CNBC, though this was unconfirmed.
September 3, 2014: Death of Andrew Madoff
Bernie Madoff's son, Andrew, died of lymphoma on September 3, 2014.
2014: Death of Andrew Madoff
Andrew Madoff died in 2014.
May 2015: Friehling Sentenced, DiPascali Dies
In May 2015, Friehling was sentenced to one year of home detention and supervised release. Madoff's financial chief, Frank DiPascali, who also pleaded guilty and cooperated with the government, died of lung cancer before his sentencing.
November 9, 2017: Madoff Victim Fund Payouts Begin
On November 9, 2017, the U.S. government initiated the distribution of $772.5 million from the Madoff Victim Fund to over 24,000 individuals impacted by the Ponzi scheme. The Madoff Recovery Initiative reported a total of $14.418 billion recovered through settlements and agreements.
July 29, 2019: Madoff Seeks Pardon
On July 29, 2019, Madoff requested a pardon or reduced sentence from President Trump.
December 2019: Madoff Hospitalized for Kidney Failure
Madoff was hospitalized in December 2019 for chronic kidney failure.
February 2020: Madoff's Chronic Kidney Failure Revealed
A court filing in February 2020 revealed that Bernie Madoff suffered from chronic kidney failure.
February 2020: Madoff Seeks Compassionate Release
In February 2020, Madoff's lawyer requested compassionate release due to terminal kidney failure, exacerbated by the COVID-19 pandemic. The request was denied.
April 14, 2021: Death of Bernie Madoff
Bernie Madoff died on April 14, 2021, at the Federal Medical Center in Butner, North Carolina, due to chronic kidney disease.
February 17, 2022: Madoff's Sister and Brother-in-Law Found Dead
On February 17, 2022, Sondra Weiner, Bernie Madoff's sister, and her husband, Marvin, were found dead in their Florida home with gunshot wounds. Their deaths were investigated as a potential murder-suicide.
2023: Equivalent Value of Madoff's Initial Investment
The $5,000 Madoff used to start his firm in 1960 is equivalent to $51,000 in 2023.