FINANCE
Ponzi scheme
Bernard Madoff's billionaire victims
Last Updated: Thursday, March 26, 2009 | 9:23 PM ET
Keren Blankfeld Schultz and Duncan Greenberg, Forbes.com

Bernard Madoff arrives in Manhattan federal court on Thursday, March 12, in New York. (Louis Lanzano/Associated Press)At least 50 victims of Bernard Madoff sat in a packed U.S. District Courtroom in Manhattan Thursday as the disgraced money manager was led off to jail in handcuffs after pleading guilty to masterminding a $65 billion US Ponzi scheme.
Outside were many more, and they still represented only the tip of an iceberg that is thought to comprise thousands of Madoff victims around the globe, from retirees and celebrities to some of the richest people in the world.
Hollywood mogul Steven Spielberg, whose net worth this year was estimated at $3 billion, lost some of his philanthropic dollars to Madoff, according to a 162-page list compiled by AlixPartners, a restructuring firm tasked with helping liquidate Madoff's investment company. Several billionaires, as well as foundations or companies funded by or associated with billionaires, were also included. Among them: First Manhattan Co., a private investment firm founded by long-time Warren Buffett associate David Gottesman.
Gottesman, who sits on the board of Berkshire Hathaway, was worth an estimated $1.8 billion when we priced our list of the wealthiest Americans this year. Last year he was listed at $2.5 billion.
Art collector Norman Braman, 76, who made his first appearance on the Forbes 400 in 2008, with a net worth of $1.7 billion after a frothy run-up in the value of his contemporary art collection, is also among those cited in the who's who of Madoff victims. Today, we estimate, he is worth $1.2 billion.
In December, Braman told Katie Couric of CBS News he had known Madoff for years and had invested a "considerable amount" of money with him. "I want to see him pay for what he has done to all these people," he told Couric.
Nobel Peace Prize recipient and Holocaust survivor Elie Wiesel is another who has been vocal about Madoff's betrayal, reportedly referring to him as "a crook" and "evil." In a statement in December, the nonprofit Elie Wiesel Foundation for Humanity admitted to having "$15.2 million under management with Bernard Madoff Investment Securities" — an amount that represented substantially all of the foundation's assets.
Not named directly in the February bankruptcy filing: real estate billionaire Mort Zuckerman, whose net worth has fallen from $2.3 billion to $1.5 billion in the last 12 months. He told Erin Burnett on CNBC three months ago that his charitable foundation lost $30 million via Madoff investments. Zuckerman, however, said that the money was being managed by an outside financial adviser and that he had no knowledge that the foundation was invested with Madoff until he was told after the story broke late last year.
Also not named but believed to have been affected by the Ponzi scheme were Alicia Koplowitz, who was considered Spain's richest woman last year but lost half her fortune in the past year, and fugitive financier Marc Rich.
Other reported celebrity victims include baseball star Sandy Koufax and New York Mets owner Fred Wilpon. Actors Kevin Bacon and his wife Kyra Sedgwick, as well as John Malkovich and Zsa Zsa Gabor were also among the many believed to be defrauded.
"I thought it would end quickly, but it proved impossible," said Madoff, before being remanded to jail and facing a possible 150-year sentence. "I am ashamed for these criminal acts. I always knew this day would come."
Share Tools
Top News Headlines
- Harper 'not consulted' about Duffy Senate expense repayment

- Prime Minister Stephen Harper says that not only did he not know about his chief of staff's "gift" to repay Senator Mike Duffy's expenses before the story broke in the media, he was not consulted and did not sign off on Nigel Wright's decision to write a personal cheque. more »
- 2 infants confirmed among dead of Oklahoma tornado
- Rescue workers raced to complete the search for survivors and the dead in the Oklahoma City suburb where a mammoth tornado destroyed countless homes, cleared lots down to bare red earth and claimed 24 lives, including those of 10 children. more »
- 'You will see him again in heaven,' Sharlene Bosma tells daughter
- Sharlene Bosma told more than 1,000 people at the public memorial service for her slain husband, Tim Bosma, about the love they shared. more »
- Mayor Ford stays silent while his brother defends him
- Toronto Mayor Rob Ford continues to stonewall the media over allegations that he was recorded on video smoking what appears to be crack cocaine, but his brother Coun. Doug Ford told reporters Wednesday that the story is untrue. more »
Must Watch
Latest Business Headlines
- Real estate site Zoocasa adds MLS listings, agent recommendations
- Zoocasa, an upstart real estate company owned by Rogers, has launched a revamped website that aims to compete with Realtor.ca by presenting MLS listings in a more user-friendly format and connecting clients with realtors from major agencies.
more »
- U.S. Republicans aim to take hold of Keystone XL decision
- The American political brawl over the approval of TransCanada's proposed Keystone XL pipeline shifted into overdrive on Wednesday as Republicans in the House of Representatives made yet another attempt to take the decision out of U.S. President Barack Obama's hands. more »
- Cooling housing market will cost us 150,000 jobs, mortgage group warns
- The government's effots to cool the housing market will have a negative impact on the economy and the range of industries that depend on house sales — everything from mortgage financing to furniture and appliance sales — the group that represents the mortgage industry says. more »
- German software firm SAP plans to hire hundreds with autism
- German software firm SAP says it wants to hire hundreds of people with autism to work as programmers and testers for its products. more »
- Bernanke cautious about removing stimulus
- U.S. Federal Reserve chairman Ben Bernanke told lawmakers Wednesday that the country's job market and economy are too weak to consider ending the central bank's extraordinary stimulus programs. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12752.50 | 10.07 |
| DOW | 15307.17 | -80.41 |
| NASDAQ | 3463.30 | -38.82 |
| SP 500 | 1655.35 | -13.81 |
| TSX-VENTURE | 942.08 | 2.67 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- 2nd suspect named in Tim Bosma slaying
- Killing near London barracks probed as 'terror' act
- Rob Ford fired as Don Bosco Eagles football coach
- Harper 'not consulted' about Duffy Senate expense repayment
- 'You will see him again in heaven,' Sharlene Bosma tells daughter
- 2 infants confirmed among dead of Oklahoma tornado
- 1.3 million Montrealers face boil water advisory
- Xbox One: A closer look
- Plumber's car explodes near Vancouver apartments

