We already figured this was probably the case, but if you still had any doubt, it’s now confirmed that Madoff wasn’t trading a lick of stock. Pure Ponzi. Late investors paying off early investors.
Boston.com: A federal agency that regulates brokerage firms says there is no record of Madoff’s investment funds placing trades through his brokerage operation. That leaves only two options – either he was placing trades only through other firms, which would be highly unusual, or he was not placing any trades.
“There was no evidence of the Madoff broker-dealer executing trades for the [Madoff] investment adviser,” said Herb Perone, spokesman for the regulatory group, the Financial Industry Regulatory Authority. A broker-dealer is any firm that buys and sells securities.
Separately, we’ve also talked with someone with knowledge of the exchange, that nobody could be found on the CBOE floor between ’04-’06 to have executed trades for Madoff.
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