Clark Galvan
Bernie Madoff's Ponzi scheme defrauded investors of an estimated $17.5 billion, with some sources claiming the figure was as high as $65 billion. The list of people swindled by Madoff included numerous celebrities, from actors to athletes to politicians. Here are some of the famous names:
- Carl Shapiro: Founder of women's clothing brand Kay Windsor
- Fred Wilpon: Former owner of the New York Mets
- Steven Spielberg: Academy Award-winning director
- Jeffrey Katzenberg: Co-founder of DreamWorks Pictures
- Mortimer Zuckerman: Chairman and editor-in-chief of U.S. News & World Report
- Larry Silverstein: Developer of the World Trade Center
- Leonard Feinstein: Co-founder of Bed, Bath & Beyond
- Eric Roth: American screenwriter
- Larry King: Emmy-winning American television and radio host
- Frank Lautenberg: Former United States senator
- Norman Braman: Former owner of the Philadelphia Eagles
- Kevin Bacon and Kyra Sedgwick: Golden Globe-winning actors and married couple
- Zsa Zsa Gabor: Actress and former Miss Hungary
- John Malkovich: Actor, director and producer
- Sandy Koufax: MLB Hall of Fame pitcher
- Tim Teufel: Former MLB second baseman
- Phyllis George: Miss America 1971
| Characteristics | Values |
|---|---|
| Number of victims | 37,000 |
| Amount lost | 65 billion, including fictional profits |
| Victims' range | Prominent figures in business and media, everyday people, nonprofit charities |
| Celebrities | Carl Shapiro, Fred Wilpon, Steven Spielberg, Jeffrey Katzenberg, Mortimer Zuckerman, Larry Silverstein, Leonard Feinstein, Eric Roth, Larry King, Frank Lautenberg, Norman Braman, Kevin Bacon, Kyra Sedgwick, Zsa Zsa Gabor, John Malkovich, Sandy Koufax, Tim Teufel, Phyllis George, Irwin Kellner, Shusaku Arakawa, Madeline Gins, Jerome Fisher, Robert I. Lappin, Marion and Elie Wiesel, Lawrence Velvel, Jeff Tucker, Rodger Krouse, Joyce Z. Greenberg, Henry Kaufman, Carl and Ruth Shapiro, Avram and Carol Goldberg, Steven Spielberg, Jeff Tucker, Lawrence Velvel, Rodger Krouse, Joyce Z. Greenberg, Henry Kaufman, Carl and Ruth Shapiro, Avram and Carol Goldberg, Steven Spielberg, Jeff Tucker, Lawrence Velvel, Rodger Krouse, Joyce Z. Greenberg, Henry Kaufman |
What You'll Learn
Actors Kevin Bacon and Kyra Sedgwick
Actors Kevin Bacon and his wife, Kyra Sedgwick, revealed that they lost "most of our money" in Bernie Madoff's Ponzi scheme. Bacon shared their experience on the Smartless podcast, hosted by Jason Bateman, Will Arnett, and Sean Hayes. The actor admitted that they had "had most of our money in Madoff," and that there were some valuable life lessons to be learned from the situation.
Bacon and Sedgwick's financial loss served as a reminder that if something seems too good to be true, it probably is. Despite their significant loss, the couple focused on the positive aspects of their lives, such as their health and family. They also acknowledged that there were others who were worse off than them as a result of Madoff's scheme.
Madoff's Ponzi scheme is considered the largest in history, with losses estimated at \$64.8 billion. Following Madoff's arrest and sentencing, the Madoff Victim Fund was established to restore losses to those affected. As of 2024, the fund has provided assistance and payouts exceeding \$4.078 billion to 40,454 victims.
Bacon and Sedgwick were able to recoup a portion of their losses, but the experience left a lasting impact. The actor shared that it was a challenging time, but they chose to focus on their blessings and move forward. Their resilience and positive outlook in the face of financial adversity demonstrate their strength and character.
The experience also served as a cautionary tale for the couple, emphasising the importance of being vigilant and aware of potential financial scams. Despite the challenges, Bacon and Sedgwick have persevered and continue to be successful actors and producers in the entertainment industry.
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Hollywood executives Jeffrey Katzenberg and Steven Spielberg
Jeffrey Katzenberg
Jeffrey Katzenberg, the co-founder of DreamWorks Pictures, is known for producing some of the biggest films of the last few decades, including Disney hits such as "The Little Mermaid" and "Aladdin", and Dreamworks Studios successes like "Shrek" and "Kung Fu Panda". Katzenberg lost at least $20 million to Madoff, including money from his charitable organisation, the Marilyn & Jeffrey Katzenberg Foundation, which had estimated assets of over $22 million before the scandal. Katzenberg described the loss as "extraordinary damage" to his philanthropic efforts, and said that it was painful and humiliating.
Steven Spielberg
Academy Award-winning director Steven Spielberg also lost money to Madoff's scheme, with his charitable foundation, the Wunderkinder Foundation, losing approximately £246,551 or $340,000. The charity's assets totalled $12.6 million in 2006, and over half of its income from interest and dividends were from Madoff investments.
Both Katzenberg and Spielberg invested with Madoff via the same business manager, who made the investments on their behalf. Neither of them knew Madoff personally.
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Former New York Mets owner Fred Wilpon
Fred Wilpon, the former owner of the New York Mets, was one of the investors who lost a significant amount of money to Bernie Madoff's Ponzi scheme. Wilpon, an American real estate developer, and baseball executive, served as the president of the Mets from 1980 to 2002, CEO from 1980 to 2020, and chairman of the board from 2002 to 2020.
Wilpon's involvement with Madoff began in 1980 when he bought a one-percent stake in the Mets. Over time, he increased his stake to five percent and, in 1986, became the sole owner of the team. Wilpon's association with Madoff went beyond his personal investments, as he utilised Madoff to run the Mets' finances. It was a common practice for the Mets to negotiate deferred money into players' contracts and then invest that money with Madoff, allowing the team to make a profit before paying the players. Additionally, Madoff funds were used to cover team expenses such as payroll and financing the creation of the cable network SportsNet New York and Citi Field.
In December 2008, Madoff's Ponzi scheme was exposed, and Wilpon was reported to have lost about $700 million. This led to speculation that he would be forced to sell the team. However, Wilpon later claimed that his losses were "substantially less" than the initial estimate. Reports even surfaced that Wilpon and his family made about $300 million with Madoff and did not lose money as previously believed.
As a result of his involvement with Madoff, Wilpon was named in a lawsuit filed by Irving Picard on behalf of Madoff's victims in December 2010. Picard alleged that Wilpon and his partner, Saul Katz, knew about Madoff's scheme and willfully ignored the financial malfeasance. In March 2012, Wilpon agreed to settle the lawsuit for $162 million, which was later slashed to $61 million as more money was recovered from Madoff's scheme. The settlement brought an end to the legal drama that had caused financial hardship for the Mets organisation.
Despite the challenges, the Mets made a World Series run in 2015 and appeared in the playoffs again in 2016. In 2020, Wilpon sold the team to billionaire hedge fund manager Steve Cohen for a record $2.4 billion, marking the end of an ownership regime marred by the link to Madoff.
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Investor Carl Shapiro
Shapiro was one of the biggest beneficiaries of Madoff's Ponzi scheme, earning $1 billion in profits off his investments, according to court filings. In December 2008, just before Madoff confessed his fraud to authorities, Shapiro requested and received $250 million from Madoff. Shapiro and his family lost around $550 million in total from their dealings with Madoff.
In 2010, Shapiro and various related people and entities agreed to forfeit $625 million to the United States government, to be made available to the victims of Madoff's fraudulent investment advisory business. This amount was more than Shapiro and his wife's net worth at the time, as well as more than the fictitious profits they took out of the scheme. The settlement did not include an admission of fault against Shapiro or his family, but it also did not release them from criminal liability. Shapiro has long denied any knowledge of the Ponzi scheme.
Carl Shapiro died at his home in Boston in March 2021, aged 108.
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Broadcaster Larry King
King was able to recover his losses within a few years, and he expressed a desire to interview Madoff, asking him: "Why? Why did you do this to people?"
King's interest in Madoff's scam was also reflected in his novel, Moon over Manhattan, where the central character, Arthur Vandameer, faces a battle for ratings and has various health issues. This reflected King's own experiences, as he had to deal with flatulence and a rectal itch.
In addition to King, several other celebrities were also victims of Madoff's scheme, including actors Kevin Bacon, John Malkovich, and Kyra Sedgwick, as well as film director Steven Spielberg and Holocaust survivor and Nobel Peace Prize winner Elie Wiesel.
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Frequently asked questions
Many celebrities lost money in Bernie Madoff's Ponzi scheme, including actors Kevin Bacon, Kyra Sedgwick, John Malkovich, and Zsa Zsa Gabor; directors Steven Spielberg and Eric Roth; and athletes Sandy Koufax and Tim Teufel.
Bernie Madoff's Ponzi scheme defrauded investors of an estimated $17.5 billion, with some sources claiming the figure to be as high as $65 billion, including fictional profits.
Bernie Madoff operated a Ponzi scheme, which is a type of fraud that pays existing investors with funds collected from new investors rather than actual profits.
Bernie Madoff was arrested in 2008 and pleaded guilty to charges of securities fraud, investment adviser fraud, mail fraud, wire fraud, money laundering, false statements, perjury, false SEC filings, and theft from an employee benefit plan. He was sentenced to 150 years in prison in 2009 and died in federal prison in 2021.
