Friends betrayed, fortunes lost, regulatory agencies that ignored tip-offs, Internal Revenue tax losses of up to $17 billion — the ripples keep spreading from Bernie Madoff’s alleged Ponzi scheme.
The New York Times reports almost no part of New York City’s real estate industry has escaped the scandal.
The Associated Press says investors who lost their fortunes may end up paying far less in taxes and may even be eligible for refunds, according to accounting experts. By some estimates, the Internal Revenue Service could be out as much as $17 billion in lost tax revenue.
The Huffington Post says the SEC received a letter in 1999 accusing Madoff of running a Ponzi scheme.
Mort Zuckerman, interviewed in Business Week, says this shadow banking system of hedge funds that has been largely unregulated is no longer going to be possible.