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Marko Amnell
March 22nd 09, 02:40 PM
Watchdog fears market ‘Ponzimonium’

By Javier Blas, Commodities Correspondent
The Financial Times

Published: March 20 2009 19:35

US federal regulators have warned of a “rampant Ponzimonium” as they
disclosed they are investigating “hundreds” of possible scams in the
aftermath of the $50bn fraud allegedly perpetrated by Bernard Madoff.

Bart Chilton, a commissioner at the Commodities Futures Trading
Commission, the US regulator, said the watchdog was “seeing more of
these scams than ever before” in commodities and other futures
markets.

Mr Chilton said the CFTC, which patrol commodities and financial
futures markets such as derivatives on stocks and foreign exchange,
was investigating “hundreds of individuals and entities, many of which
were related to Ponzi scams”.

The CFTC has filed charges against 15 alleged Ponzi schemes so far
this year, compared with 13 during the whole of 2008. If the rate were
sustained, the regulator could end the year filling more than 60
cases, officials said.

US regulators have said they are detecting more scams than before as
the publicity surrounding Mr Madoff‘s case prompts some investors to
question the credibility of returns.

But this is the first time a senior regulator has publicly put the
number of investigation in the “hundreds”.

“The floundering economy has unearthed many of these house-of-card
scams,” said Mr Chilton. “In the last month alone we’ve gone after
crooks in Pennsylvania, New York, North Carolina, Iowa, Idaho, Texas
and Hawaii.”

Mr Chilton did not provide details of the investigations but it is
likely the majority of the cases relate to small investments, in the
range of a few million dollars to $50m (€37m, £35m). In the latest
case, the CFTC this week charged a North Carolina investment company
over an alleged $40m Ponzi scheme in foreign exchange trading.

“These frauds combined harmed tens of thousands of hard-working
Americans, many of whom thought they were investing properly to save
for retirement or even their first home,” said Mr Chilton.

“It is a good thing that folks are double-checking to ensure they
aren’t being ripped off by fraudsters,” he said, referring to the
increasing number of investors who are tipping off US federal
regulators after they have become suspicious.

http://www.ft.com/cms/s/0/fd01b70c-1584-11de-b9a9-0000779fd2ac.html

Fish
March 22nd 09, 05:38 PM
On Mar 22, 6:40 am, Marko Amnell > wrote:
> Watchdog fears market ‘Ponzimonium’
>
> By Javier Blas, Commodities Correspondent
> The Financial Times
>
> Published: March 20 2009 19:35
>
> US federal regulators have warned of a “rampant Ponzimonium” as they
> disclosed they are investigating “hundreds” of possible scams in the
> aftermath of the $50bn fraud allegedly perpetrated by Bernard Madoff.
>
> Bart Chilton, a commissioner at the Commodities Futures Trading
> Commission, the US regulator, said the watchdog was “seeing more of
> these scams than ever before” in commodities and other futures
> markets.
>
> Mr Chilton said the CFTC, which patrol commodities and financial
> futures markets such as derivatives on stocks and foreign exchange,
> was investigating “hundreds of individuals and entities, many of which
> were related to Ponzi scams”.
>
> The CFTC has filed charges against 15 alleged Ponzi schemes so far
> this year, compared with 13 during the whole of 2008. If the rate were
> sustained, the regulator could end the year filling more than 60
> cases, officials said.
>
> US regulators have said they are detecting more scams than before as
> the publicity surrounding Mr Madoff‘s case prompts some investors to
> question the credibility of returns.
>
> But this is the first time a senior regulator has publicly put the
> number of investigation in the “hundreds”.
>
> “The floundering economy has unearthed many of these house-of-card
> scams,” said Mr Chilton. “In the last month alone we’ve gone after
> crooks in Pennsylvania, New York, North Carolina, Iowa, Idaho, Texas
> and Hawaii.”
>
> Mr Chilton did not provide details of the investigations but it is
> likely the majority of the cases relate to small investments, in the
> range of a few million dollars to $50m (€37m, £35m). In the latest
> case, the CFTC this week charged a North Carolina investment company
> over an alleged $40m Ponzi scheme in foreign exchange trading.
>
> “These frauds combined harmed tens of thousands of hard-working
> Americans, many of whom thought they were investing properly to save
> for retirement or even their first home,” said Mr Chilton.
>
> “It is a good thing that folks are double-checking to ensure they
> aren’t being ripped off by fraudsters,” he said, referring to the
> increasing number of investors who are tipping off US federal
> regulators after they have become suspicious.
>
> http://www.ft.com/cms/s/0/fd01b70c-1584-11de-b9a9-0000779fd2ac.html

500 co are now under FBI investigation, the gov should create a
special branch just to handle financial corruptions.

RayLopez99
March 22nd 09, 11:46 PM
On Mar 22, 10:40*am, Marko Amnell > wrote:

Forbes had an article about a penny stock operator still in business
today that has "Madoff" type returns (constant positive number, month
after month, even after the crash). He was recently sued by a big
investor who asked for his money back, and the operator settled out of
court in exchange for a non-disclosure and confidentiality agreement
on the settlement. And he's still in business.

Time-bomb waiting to go off.

RL

March 24th 09, 06:07 PM
On Mar 22, 7:38*pm, Fish > wrote:
> On Mar 22, 6:40 am, Marko Amnell > wrote:
>
>
>
>
>
> > Watchdog fears market ‘Ponzimonium’
>
> > By Javier Blas, Commodities Correspondent
> > The Financial Times
>
> > Published: March 20 2009 19:35
>
> > US federal regulators have warned of a “rampant Ponzimonium” as they
> > disclosed they are investigating “hundreds” of possible scams in the
> > aftermath of the $50bn fraud allegedly perpetrated by Bernard Madoff.
>
> > Bart Chilton, a commissioner at the Commodities Futures Trading
> > Commission, the US regulator, said the watchdog was “seeing more of
> > these scams than ever before” in commodities and other futures
> > markets.
>
> > Mr Chilton said the CFTC, which patrol commodities and financial
> > futures markets such as derivatives on stocks and foreign exchange,
> > was investigating “hundreds of individuals and entities, many of which
> > were related to Ponzi scams”.
>
> > The CFTC has filed charges against 15 alleged Ponzi schemes so far
> > this year, compared with 13 during the whole of 2008. If the rate were
> > sustained, the regulator could end the year filling more than 60
> > cases, officials said.
>
> > US regulators have said they are detecting more scams than before as
> > the publicity surrounding Mr Madoff‘s case prompts some investors to
> > question the credibility of returns.
>
> > But this is the first time a senior regulator has publicly put the
> > number of investigation in the “hundreds”.
>
> > “The floundering economy has unearthed many of these house-of-card
> > scams,” said Mr Chilton. “In the last month alone we’ve gone after
> > crooks in Pennsylvania, New York, North Carolina, Iowa, Idaho, Texas
> > and Hawaii.”
>
> > Mr Chilton did not provide details of the investigations but it is
> > likely the majority of the cases relate to small investments, in the
> > range of a few million dollars to $50m (€37m, £35m). In the latest
> > case, the CFTC this week charged a North Carolina investment company
> > over an alleged $40m Ponzi scheme in foreign exchange trading.
>
> > “These frauds combined harmed tens of thousands of hard-working
> > Americans, many of whom thought they were investing properly to save
> > for retirement or even their first home,” said Mr Chilton.
>
> > “It is a good thing that folks are double-checking to ensure they
> > aren’t being ripped off by fraudsters,” he said, referring to the
> > increasing number of investors who are tipping off US federal
> > regulators after they have become suspicious.
>
> >http://www.ft.com/cms/s/0/fd01b70c-1584-11de-b9a9-0000779fd2ac.html
>
> 500 co are now under FBI investigation, the gov should create a
> special branch just to handle financial corruptions.

Corruption, fraud and the involvement of organised crime
in the financial markets have certainly increased over the
last 25 years. However, it is difficult to estimate the size
of this growth. Harry Shutt estimated in 1998 that proceeds
from organised crime activity constituted about 10 per cent
of the total amount of funds in the global financial markets,
a vast sum of money. (See Harry Shutt, _The trouble with
capitalism: an inquiry into the causes of global economic
failure_, Zed Books 1998). Shutt notes, for example, that
there is strong evidence to support the claim that organised
crime groups were heavily involved in the Savings and Loan
debacle. As recent events have shown, there is every
reason to believe that the involvement of organised crime
in the financial markets has increased significantly from
1998 to the present. The true extent of this activity cannot
be known, nor do we know how far organised crime groups
have penetrated into Western governments and regulatory
agencies.