Media accounts immediately labeled the disappearance of $50 billion, masterminded by Bernard Madoff, as "the largest fraud in history." It is a greater wealth loss than having a household name company -- such as Walt Disney, Anheuser-Busch or Boeing -- vanish without a trace.
The loss is mind-boggling. But the figure does nothing to convey the damage this man has done.
One way to measure the extent of the damage is to compare the $50 billion to measures of loss in the FBI's Uniform Crime Reports. In 2007 there were 9.8 million crimes against property in the United States. This included about 2.2 million burglaries, 6.6 million larceny-thefts and 1.1 million car thefts.
I think you'll agree that 9.8 million crimes represent a veritable army of miscreants. In spite of that, our total losses to property crimes in 2007 were a mere $17.6 billion. To be sure, it didn't feel "mere" if you suffered a burglary. The average loss was $1,991. Nor was it "mere" if you were one of the 6.6 million people who suffered a larceny-theft. In those, the average loss was $886.
But when you add all the losses in 9.8 million common property crimes, it's just a fraction of the estimated $50 billion loss attributed to Bernard Madoff.
Perhaps 2007 was an "off" year for theft?
Well, there was a slight decline in the number of crimes, but not in the amount lost. In 2006 the report shows nearly 10 million crimes against property and losses of another $17.6 billion. Similarly, the 2005 report shows nearly 10.2 million crimes against property and a total loss of $16.5 billion.
Add the three years and you get $51.7 billion. Using that value, Bernard Madoff has caused losses equal to all the losses caused by all the conventional thieves in America for nearly three full years.
http://assetbuilder.com/blogs/scott_burns/archive/2008/12/26/measuring-madoff.aspx
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