Wikileaks: Bernie Madoff, Allen Stanford Tried To Ensnare Libya's Gadhafi In Ponzi Scheme
This makes intuitive sense considering the $32 billion size of the Libyan SWF. Billionaire Ponzi schemers need access to real money occasionally, and Middle Eastern SWFs are habitual targets. Appropriately, Madoff and Stanford now reside in the same North Carolina prison, though the story would be exponentially more rewarding had either scammer actually been successful in conning a few billion from the opiate-addled Libyan dictator.
The story originates from the following diplomatic cable:
Wikileaks Cable - U.K. Guardian
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Even despotic leaders, it turns out, can make sound investment decisions.
Libyan leader Moamar Gadhafi turned down a chance to invest with Bernie Madoff and accused ponzi schemer Allen Stanford, according to a new diplomatic cable released by WikiLeaks. The U.K.'s Telegraph has the full cable, dated January 28, 2010.
In the cable, the head of the Libyan sovereign wealth fund, Mohamed Layas, claimed to control $32 billion in liquid assets, most of which was deposited at U.S. banks. Layas, according to the cable, was miffed at Libyan funds that were "mismanaged" by Lehman Brothers, the failed investment bank.
From the cable:
"Layas denied press reports that the LIA had invested USD 100 million with the infamous Allen Stanford. He said that he had personally written a letter to the "Financial Times" disputing the information, explaining that Stanford had approached the LIA in the middle of his crisis, offering a 7-8% share in his investment scheme, but Layas had refused. Layas also mentioned having been previously approached by Bernard Madoff about an investment opportunity, "but we did not accept." On the contrary, LIA's recent purchase of the Canadian Verenex oil company -- after much controversy over the manner in which it was purchased and share price -- was considered by Layas a "good deal." LIA plans to operate Verenex jointly with the Libyan Investment and Development Corporation (LIDCO).
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Yesterday's must read...
Feb 24, 2011 at 2:05 PM
Reader Comments (2)
I was at the gym yesterday and over heard a conversation where an idiot was telling his friend to buy Silver ETF and to put as much money in it as possible cause his friend doubled his money in less than 6 months. Bought silver at 18 and now its at 32. He thought at 32 it was a huge bargain and that silver was going to the moon.
now we have a new class of idiots chasing commodities and thats going to be next ugly bubble. How come people never learn a lesson?????? always looking for a hot idea???
I saw a piece on CNN where they were saying how Gadhavfi's son used to party in the states and burn through tons of cash. this guy was partying with rock starts, celebreties, and huge entertainers. these crooks were wasting their own people's money on their lavish lifestyles. Time for them to be in jail.
go people of middle east! freedom is a beautiful thing!!!!