Bernie Madoff’s victims to receive final payout totaling $131 million
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(NEW YORK) — The fund disbursing money to the victims of Bernie Madoff’s legendary Ponzi scheme began its 10th and final distribution on Monday, putting another $131 million in the pockets of swindled investors.
Twenty-three thousand victims worldwide are receiving payments, bringing their total recoveries to 94% of their losses. Most of these victims were small investors who lost less than $500,000 in the fraud, according to federal prosecutors.
Since the collapse of Madoff’s investment house and his 2009 guilty plea, the Madoff Victim Fund has paid more than $4 billion to nearly 41,000 victims in 127 countries.
“This office has never stopped pursuing justice for victims of history’s largest Ponzi scheme,” acting U.S. Attorney Edward Y. Kim said.
For decades, Madoff used the investment advisory business he founded in 1960 to steal billions from his clients, turning his wealth management firm into the world’s largest Ponzi scheme to benefit himself, his family and select members of his inner circle.
He was sentenced to 150 years in prison, where he died in 2021.
“The unprecedented scope and complexity of the Madoff remission process shows the power of forfeiture to recover assets and to compensate victims,” Principal Deputy Assistant Attorney General Brent Wible said in a statement on Monday.
(NEW YORK) — General Motors is “very serious about making Cadillac a premium brand again,” Michael Simcoe — the company’s senior vice president of global design — told ABC News in an interview about the “engineering and design tour de force” that is the new Celestiq.
The interview below has been edited for clarity.
Q: A huge trend in the industry now is customization, coachbuilding, bespoke vehicles. Why is Cadillac going in that direction and what has the response been like? And are you trying to appeal to customers who have Bentleys and Rolls-Royces?
A: With the Celestiq, we’re offering customers the ability to truly customize everything. The tyranny of choices is there and we try to help them. Customers have the ability to touch every color and finish on the exterior and interior of the car to give it their own personality. Yes, there are a few competitors, but people at this level are looking for something very unique and very specific to them.
Q: How long does it take to build a Celestiq?
A: We can build two a day. We are building cars right now and a number of people have gone through the design process and selected their interior, their exterior with our designers. So their cars are now in line to be built.
Q: How many orders have you received?
A: I can’t tell you that.
Q: Are customers coming to the Cadillac House in Michigan or are your designers flying all over the world to meet with clients?
A: They have a choice. We can do it online with them, they can come to Cadillac House and go through the samples with us. Or we’ll send designers to customers if we need to.
Q: When did Cadillac make the decision to go ultra luxe and offer a product that starts at $350,000?
A: Cadillac has tried a number of times to reestablish its position. It was and is becoming again the standard of the world. That’s the way we have always thought about it. Certainly for our customers we haven’t delivered that, at least delivered what they expected. We have tried a number of times to through vision products and concept flagships to spark a rebirth of Cadillac.
The only way to prove internally and externally that we were very serious about making Cadillac a premium brand again was to do a vehicle like the Celestiq. It’s an engineering and design tour de force and it’s hand built. It’s proof we can actually can take Cadillac back to the position it had in the past.
The Celestiq is new and represents the current generation. We really are predicting and showing people where we are going and I think that’s very important. Cadillac will no longer be something static that people get a chance to ignore and forget. We will be out there with beautiful designs and vehicles that people fall in love with.
Q: Celestiq, Lyriq, Optiq, Escalade IQ — why do all Cadillac EVs end in IQ?
A: We could have gone with our venerable names from the past, but that didn’t seem right when we were moving the brand to an all EV-based architecture. It was a signal that these vehicles were our new generation of Cadillacs.
Q: When you were overseeing the design of these new EVs, particularly the Celestiq, what was important to include?
A: We wanted a vehicle that was different to some of the high-end competition. We feel like we did our own thing in proportion to the vehicle. It still has a long hood. It has a hint of Cadillac heritage in the way the interior was designed. These long, horizontal architecture lines with metallic finishes and detail inside the car — that hints back to Cadillacs in the early 60s and 70s.
Q: Are customers actually going to drive the Celestiq or is it a vehicle to be chauffeured in?
A: This won’t be their daily driver but it could be. It has 300-ish miles of range, lots of power, lots of performance. It’s a very easy car to drive and control. It has four-wheel steering, so it drives like a small car. It has ride control and air suspension and all of the technical marvels like a large screen.
It is a spirited drive and it feels good. Jay Leno drove it and I think he enjoyed himself. But you can sit back here, in the second row, and it’s a premium experience as well. We’re not dictating where you should be.
Q: I want to ask about the CT5-V Blackwing and CT4-V Blackwing, two high-performance sedans that have received top praise from the enthusiast community. Are they going away now that the brand’s direction is electric? What’s the future for them?
A: I can’t tell you in detail but they’ll be around. We recognize the value of the cars so they”ll be around.
(NEW YORK) — Bitcoin vaulted to a record high on Thursday, surging more than 3% in early trading and hurtling toward investors’ long-sought milestone of $100,000.
The price of bitcoin briefly exceeded $98,000 for the first time on Thursday morning, before retreating to about $97,600.
The value of the world’s most popular cryptocurrency has soared 31% since the reelection of former President Donald Trump, who is widely viewed as friendly toward digital currency.
By comparison, the S&P 500 has climbed 2.4% since Election Day, while the tech-heavy Nasdaq has increased 2.6%.
The run-up of bitcoin extended to other parts of the crypto industry. Ether, the second-largest cryptocurrency, jumped 8% in early trading on Thursday. Lesser-known litecoin rose nearly 6%, and dogecoin ticked up more than 2%.
On the campaign trail, Trump vowed to bolster the cryptocurrency sector and ease regulations enforced by the Biden administration. Trump also promised to establish the federal government’s first National Strategic Bitcoin Reserve.
Trump said he would replace Securities and Exchange Commission Chair Gary Gensler, whom many crypto proponents dislike for what they perceive as a robust approach to crypto regulation.
In July, Trump told the audience at a cryptocurrency conference in Nashville, Tennessee, that he wanted to turn the U.S. into the “crypto capital of the planet.”
“I’m calling it the ‘election dividend,'” James Butterfill, head of research at digital asset management firm CoinShares, told ABC News. “We went from being worried about a Democrat getting elected to what we’ve got: a Republican clean sweep.”
The recent rise follows a period of stellar returns that stretches back to last year. The price of bitcoin has soared more than 150% since November 2023. Over that period, the S&P 500 has climbed about 30%.
Those gains have been propelled, in part, by U.S. approval in January of bitcoin ETFs, or exchange-traded funds. Bitcoin ETFs allow investors to buy into an asset that tracks the price movement of bitcoin, while avoiding the inconvenience and risk of purchasing the crypto coin itself.
Options trading for bitcoin ETFs
On Tuesday, options on BlackRock’s popular iShares Bitcoin Trust ETF (IBIT) were made available for trading on the Nasdaq. The options, which provide a new avenue for bitcoin investors, allow individuals to commit to buy or sell the ETF at a given price by a specific date. While such investments typically come with additional risk, they can also make large payouts.
The price of IBIT jumped 3.1% on Thursday.
The newly available options may account for some of the rise in the price of bitcoin over recent days, Bryan Armour, the director of passive strategies research at financial firm Morningstar, told ABC News.
“The options add volatility on top of volatility, which has interested some of the crypto investors,” Armour said.
The crypto industry entered this year bruised after a series of high-profile collapses and company scandals.
FTX, a multibillion-dollar cryptocurrency exchange co-founded by Sam Bankman-Fried, collapsed in November 2022. The implosion set off a 17-month legal saga that resulted in the conviction of Bankman-Fried for fraud. In April, Bankman-Fried was sentenced to 25 years in prison.
The surge of bitcoin since Election Day may continue for the foreseeable future, since past periods of momentum have been shown to propel the cryptocurrency, Armour said. But crypto investments remain highly volatile, he added, recommending that the asset make up no more than 5% of a person’s portfolio.
“It’s notoriously difficult to provide a value for bitcoin’s price,” Armour said. “It can go up; it can go down.”
“I would continue to keep any allocation small,” Armour added.
(NEW YORK) — In a letter to shareholders, Warren Buffett revealed that he would be donating more than $1.1 billion of Berkshire Hathaway stock to four of his family’s foundations. In addition, he detailed plans for distributing his wealth after his death.
Buffett, the CEO and Chairman of Berkshire Hathaway, reflected in the letter released Monday on his life and how long he has lived.
“Father time always wins. But he can be fickle – indeed unfair and even cruel – sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit,” Buffett said. “To date, I’ve been very lucky, but, before long, he will get around to me.”
Buffet, 94, said he and his late wife, Susan Buffett, always expected she would outlive him and be the one to distribute his fortune.
But when Susan died in 2004, with a fortune of $3 billion and 96% of that going to the foundation, she left $10 million to each of their three children.
That was the largest gift they had given them, Buffet said.
Buffett believes that parents should support their children but do so in a meaningful way.
“Our belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing,” Buffett wrote in his letter to shareholders.
Buffett explains that he “never wished to create a dynasty or pursue any plan that extended beyond the children.” He also admits that while he and Susan encouraged the children to get involved in philanthropy, that the children weren’t ready to handle the wealth Berkshire stocks had generated in light of their mother’s death.
Since the 2006 lifetime pledge Buffett made and later expanded, the children have dramatically increased their philanthropic activities, Buffet said. And now Buffett is entrusting them fully.
“The children have now more than justified our hopes and, upon my death, will have full responsibility for gradually distributing all of my Berkshire holdings,” Buffet said. “These now account for 99 1⁄2% of my wealth.”
Buffett has described his wealth and age as “lucky” but he also sees a downside to it, he said.
“There is, however, a downside to my good fortune in avoiding his notice. The expected life span of my children has materially diminished since the 2006 pledge. They are now 71, 69 and 66.”
With his children getting older, the family has also designated three potential successors, Buffett said.
“Each is well known to my children and makes sense to all of us. They are also somewhat younger than my children,” Buffett said.
Buffett also reflects on his “lucky streak” dating back to 1930 when he was born as white male in the United States. He mentions his two sisters being promised by the 19th Amendment to be treated equally with males. And he admits to growing in a country that has not yet fulfilled its promises elsewhere.
“In 1930, however, I emerged in a country that hadn’t yet gotten around to fulfilling its earlier aspirations,” Buffett said. “Aided by Billie Jean King, Sandra Day O’Connor, Ruth Bader Ginsberg, and countless others, things began changing in the 1970s.”
Favored by male status, Buffet said he had confidence he would become rich one day. But he never expected it to be the way it is, he said.
“But in no way did I, or anyone else, dream of the fortunes that have become attainable in America during the last few decades,” Buffett said. “Billions became the new millions.”
