One way Bernie Madoff fooled people was by sending detailed financial statements every month showing supposed trades in the month. The New York Times’s Zachery Kouwe has published such a statement from November, courtesy of a Madoff client who is now $1.8 million lighter than he used to be.
The statement shows some trades that might be legitimate and at least one that couldn’t have been. Document embedded below:
The trade confirmation shows Mr. Madoff sold 760 shares of Qualcomm for $33.77 a share on Nov. 6. Qualcomm shares that day traded as high as $35.07 and closed at $32.89, making Mr. Madoff’s trade appear legitimate even if it was never executed. The technology required for his giant market making operation may have enabled Mr. Madoff to print out thousands of fictitious reports and trade confirmations that he then sent to investors.
However, a spot check of the November statement shows some discrepancies. Google, for example, is listed at a price of $337.40 on Nov. 12. Yet according to Yahoo Finance, the Internet search giant’s stock only traded between $312.49 and $287.76.