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Its weird how he was the only one dealing with all the monetary side of the business and that his sons - the senior executives - had no knowledge of what was happening
The firm was apparently divided into two parts, with the sons working on the trading desk / market making side. The fraud was on the client-fund investment side (it wasn't a hedge fund - I'm not sure what is was).
The auditors almost certainly had to be in on it or senile. How many others knew is uncertain at this point but will be closely looked at...
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I guess in a scheme like his you are OK so long as you are a relatively small investor and you get out before it all crashes.
In a situation like this the bankruptcy court may claw back money investors got out over the last year or two on the grounds that was part of the fraud and should go into the pool to repay everyone. Even those who got out "in time" aren't safe from this.
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ts unbelievable how he could have kept it going for 50 years although I guess this is the first real economic downturn since before world war 2 when there would be more likely to be a rush of people wanting to withdraw their money
There have been *several* hard recessions since then. The Thai Bahtulism / Russian default in the late 1990s also triggered an "irrational" flight to cash and he survived that.
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It was disgusting how in his last meeting with his sons he was talking about how to distribute his last half a billion dollars or so amongst family and friends before he turned himself in
His sons promptly turned him in. Right after the meeting they called their lawyer and I can imagine their lawyer's reaction: "were you involved, aware, guilty of anything? Then turn him in Now! Now! Now!"
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"If they can't picture me with a knife, forcing them to strip in an alley, I don't want any part of it. It's humiliating." - windsock
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