Well I wasn't referring to the SEC when I said I don't believe no one knew about it. I certainly don't think the SEC "knew" but they certainly screwed up by thinking "hey we know this guy is honest, there's nothign going on with him". It was his connections that got him through it imo. What I was referring to was inside his company. There are others that were complicit and should be held accountable.
I dont think he literally blew 50 billion either. However, he used it to pay investors for their ROI as new investors injected capital. Vicious circle. When new investors dried up so did the capital needed to pay existing investors. BOOM...explosion. If they received money gained from illegal activities they are subject to losing it IMHO. Its like receiving stolen goods. You may be innocent of a crime but you sure cant keep the goods. In this case they received stolen money. I agree. One man can not manipulate a scam of this magnitude. I think he is trying to take the fall for whoever else is involved so they can keep whatever riches they gained. I don't think they should be allowed to profit when innocent entities are getting scammed. Whatever they received should be forfeited like stolen property. There are golden parachutes somewhere in this scheme. They need to be exposed and forfeited.
That's what I was trying to say at the end of my rant there. Unless he paid out the investors that were closest to him and least wanted to be burned by the situation. Then what happens? Maybe he gives an old friend 25 million of the 30 million he has invested and wanted to redeem. Not exactly fair that every gets stuck for the full amount but who's gonna go get the 25 from the guy it was owed to. And if you take it, you have to take every penny that was redeemed from when the ponzi started. However, if he just gave the money to employees as bonuses or something, you are right, it will be confiscated. And those people should also go to jail if they were complicit or even had knowledge of what was going on.
It's all going to come out eventually. People will go to jail. Some SEC officials will get fired too.
I don't want to disparage the deceased but to say he did nothing wrong is incorrect. He invested 1.4 billion dollars of his and others' money and did not do his proper due dilligence. Having said that, it is a very sad story that this guy felt he had no other option but to take his life.
