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http://newpaper.asia1.com.sg/news/story/0,4136,192144,00.html?
S'pore PR lost money to Madoff
February 08, 2009
--PICTURE: Courtesy of Joseph Murray
A SINGAPORE resident was one of nearly 14,000 people who lost money invested with Bernard Madoff's firm in the US.
Madoff, former chairman of the Nasdaq stock exchange, is alleged to have conned his victims through a Ponzi scheme that lost at least US$50 billion ($75 billion).
Yesterday, The Business Times reported that Madoff had given annual returns of 11 per cent to Mr Joseph Murray (left), an American who is now a Singapore permanent resident.
In 1993, he had met Madoff in the latter's office in New York to discuss investment plans.
After hearing Madoff talk for 35 minutes, Mr Murray decided to invest in his scheme.
He declined to reveal how much he lost, but said it was close to the $500,000 insurance limit under the Securities Investor Protection Corporation, through which he is now trying to reclaim some of his funds.
His 84-year-old mother however, is not as lucky as she had placed all her life savings with Madoff.
'She was devastated,' said Mr Murray, 53, who added that he and his brother are supporting her financially.
Mr Murray, who lives with his wife and children in a condominium in eastern Singapore, runs a voice-recording studio.
He told BT that he had felt uneasy about the investment.
'Oddly enough, I entertained thoughts of pulling out,' he told the paper.
He added that when he tried to find out more about Madoff's company, Bernard L Madoff Investment Securities LLC, the man was evasive.
Mr Murray told BT: 'He said: 'Look, I'm a busy guy, there're a lot of people who want to invest with me. You're not forced to do so. In fact, if you're reluctant, go home and think about it.'
Madoff allegedly told Mr Murray that he was doing him a favour as he normally does not accept investments less than US$1 million ($1.5 million).
Madoff's sales pitch was an investment strategy consisting of purchasing blue-chip stocks and then, taking options contracts on them.
As his investment had decent returns, Mr Murray decided not to withdraw his funds.
Then, on 11 Dec, Madoff was charged with investor fraud and his scheme was exposed.
It appeared that Madoff's trading strategy had failed, and to compensate for the losses, he began a client-based Ponzi scheme.
Madoff is under house arrest until his indictment, which is expected in the middle of this month.
Recalling his reaction to the news, Mr Murray told BT: 'I was watching CNBC when I saw Madoff walk out in handcuffs. I can tell you, I let out a few expletives.'
Describing his failed investment as a 'grain of sand on the beach', Mr Murray said he did not lose all his money as he has a diversified portfolio. But plans to buy a new home in the US have to be delayed, as his investment was meant to pay for that.
He and his wife have told their two young sons about what happened and the elder boy offered a witty solution. Mr Murray said: 'He said, 'Don't worry, Daddy. I'll write to Santa Claus and ask him to return your money.'
S'pore PR lost money to Madoff
February 08, 2009
--PICTURE: Courtesy of Joseph Murray
A SINGAPORE resident was one of nearly 14,000 people who lost money invested with Bernard Madoff's firm in the US.
Madoff, former chairman of the Nasdaq stock exchange, is alleged to have conned his victims through a Ponzi scheme that lost at least US$50 billion ($75 billion).
Yesterday, The Business Times reported that Madoff had given annual returns of 11 per cent to Mr Joseph Murray (left), an American who is now a Singapore permanent resident.
In 1993, he had met Madoff in the latter's office in New York to discuss investment plans.
After hearing Madoff talk for 35 minutes, Mr Murray decided to invest in his scheme.
He declined to reveal how much he lost, but said it was close to the $500,000 insurance limit under the Securities Investor Protection Corporation, through which he is now trying to reclaim some of his funds.
His 84-year-old mother however, is not as lucky as she had placed all her life savings with Madoff.
'She was devastated,' said Mr Murray, 53, who added that he and his brother are supporting her financially.
Mr Murray, who lives with his wife and children in a condominium in eastern Singapore, runs a voice-recording studio.
He told BT that he had felt uneasy about the investment.
'Oddly enough, I entertained thoughts of pulling out,' he told the paper.
He added that when he tried to find out more about Madoff's company, Bernard L Madoff Investment Securities LLC, the man was evasive.
Mr Murray told BT: 'He said: 'Look, I'm a busy guy, there're a lot of people who want to invest with me. You're not forced to do so. In fact, if you're reluctant, go home and think about it.'
Madoff allegedly told Mr Murray that he was doing him a favour as he normally does not accept investments less than US$1 million ($1.5 million).
Madoff's sales pitch was an investment strategy consisting of purchasing blue-chip stocks and then, taking options contracts on them.
As his investment had decent returns, Mr Murray decided not to withdraw his funds.
Then, on 11 Dec, Madoff was charged with investor fraud and his scheme was exposed.
It appeared that Madoff's trading strategy had failed, and to compensate for the losses, he began a client-based Ponzi scheme.
Madoff is under house arrest until his indictment, which is expected in the middle of this month.
Recalling his reaction to the news, Mr Murray told BT: 'I was watching CNBC when I saw Madoff walk out in handcuffs. I can tell you, I let out a few expletives.'
Describing his failed investment as a 'grain of sand on the beach', Mr Murray said he did not lose all his money as he has a diversified portfolio. But plans to buy a new home in the US have to be delayed, as his investment was meant to pay for that.
He and his wife have told their two young sons about what happened and the elder boy offered a witty solution. Mr Murray said: 'He said, 'Don't worry, Daddy. I'll write to Santa Claus and ask him to return your money.'
