Jul 20 2012, 02:59 PM
Why Bank Negara, Securities Commission, ROC are not doing anything ?
If we look at the Madoff's US$65 billion ponzi scheme, it was only when his own son reported to the authority that the scheme was finished. That is the time Madoff knew he couldn't hide anymore when the new customers' cash inflow is no longer enough to pay the old customers. The scheme lasted >15 years
This one started in 2009. It wouldn't end for another 12 years
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"Madoff said he began the Ponzi scheme in the early 1990s. However, federal investigators believe the fraud began as early as the 1970s. Concerns about Madoff's business surfaced as early as 1999, when financial analyst Harry Markopolos informed the U.S. Securities and Exchange Commission (SEC) that he believed it was legally and mathematically impossible to achieve the gains Madoff claimed to deliver. According to Markopolos, he knew within five minutes that Madoff's numbers didn't add up, and it took four hours of failed attempts to replicate them to conclude Madoff was a fraud.[58] He was ignored by the Boston SEC in 2000 and 2001, as well as by Meaghan Cheung at the New York SEC in 2005 and 2007 when he presented further evidence. He has since published a book, No One Would Listen, about the frustrating efforts he and his team made over a ten-year period to alert the government, the industry, and the press about the Madoff fraud.
Although Madoff's wealth management business ultimately grew into a multi-billion-dollar operation, none of the major derivatives firms traded with him because they didn't think his numbers were real. None of the major Wall Street firms invested with him either, and several high-ranking executives at those firms suspected he wasn't legitimate.[58]
Others also contended it was inconceivable that the growing volume of Madoff accounts could be competently and legitimately serviced by his documented accounting/auditing firm, a three-person firm with only one active accountant.[59]
The Federal Bureau of Investigation complaint says that during the first week of December 2008, Madoff confided to a senior employee, identified by Bloomberg News as one of his sons, that he said he was struggling to meet $7 billion in redemptions.[18] According to the sons, Madoff told Mark Madoff on December 9 that he planned to pay out $173 million in bonuses two months early.[60] Madoff said that "he had recently made profits through business operations, and that now was a good time to distribute it."[18] Mark told Andrew Madoff, and the next morning they went to their father's apartment and asked him how he could pay bonuses to his staff if he was having trouble paying clients. With Ruth Madoff nearby, Madoff told them he was "finished," that he had "absolutely nothing" left, that his investment fund was "just one big lie" and "basically, a giant Ponzi scheme."[60] According to their attorney, Madoff's sons then reported their father to federal authorities.[18] On December 11, 2008, he was arrested and charged with securities fraud.[20] "
Although Madoff's wealth management business ultimately grew into a multi-billion-dollar operation, none of the major derivatives firms traded with him because they didn't think his numbers were real. None of the major Wall Street firms invested with him either, and several high-ranking executives at those firms suspected he wasn't legitimate.[58]
Others also contended it was inconceivable that the growing volume of Madoff accounts could be competently and legitimately serviced by his documented accounting/auditing firm, a three-person firm with only one active accountant.[59]
The Federal Bureau of Investigation complaint says that during the first week of December 2008, Madoff confided to a senior employee, identified by Bloomberg News as one of his sons, that he said he was struggling to meet $7 billion in redemptions.[18] According to the sons, Madoff told Mark Madoff on December 9 that he planned to pay out $173 million in bonuses two months early.[60] Madoff said that "he had recently made profits through business operations, and that now was a good time to distribute it."[18] Mark told Andrew Madoff, and the next morning they went to their father's apartment and asked him how he could pay bonuses to his staff if he was having trouble paying clients. With Ruth Madoff nearby, Madoff told them he was "finished," that he had "absolutely nothing" left, that his investment fund was "just one big lie" and "basically, a giant Ponzi scheme."[60] According to their attorney, Madoff's sons then reported their father to federal authorities.[18] On December 11, 2008, he was arrested and charged with securities fraud.[20] "
http://en.wikipedia.org/wiki/Bernard_Madoff
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The below figures is approx for most gold investment with 'discounts', as I do not have their actual numbers, but the modus operandi is roughly as follow.
. Or they can still give you redemption, but with 'other' people money, temporary until gold price goes up back. 
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