Institutional-Failure

Bernie Madoff Arrested for $65 Billion Ponzi Scheme After SEC Ignored Warnings for 16 Years

| Importance: 10/10

On December 11, 2008, FBI agents arrested Bernard L. Madoff for orchestrating the largest Ponzi scheme in history, worth approximately $65 billion and affecting 37,000 victims across 136 countries. Madoff, former chairman of the Nasdaq Stock Market, confessed to his sons on December 9 that his …

Bernie Madoff Federal Bureau of Investigation Securities and Exchange Commission (SEC) Harry Markopolos fraud regulatory-capture sec ponzi-scheme financial-crime +3 more
Read more →

Harry Markopolos Submits 'The World's Largest Hedge Fund Is a Fraud' to SEC, Agency Ignores Detailed Evidence for Third Time

| Importance: 10/10

On November 7, 2005, financial analyst Harry Markopolos submitted his third and most detailed complaint to the SEC, a report entitled ‘The World’s Largest Hedge Fund is a Fraud,’ outlining approximately 30 red flags indicating that Bernie Madoff was operating a Ponzi scheme, which …

Harry Markopolos Securities and Exchange Commission (SEC) Bernie Madoff fraud regulatory-capture sec ponzi-scheme financial-crime +3 more
Read more →

WHIG Achieves Systematic Bypass of Constitutional Separation of Powers Through Congressional Deception

| Importance: 9/10

President Bush signs the Authorization for Use of Military Force Against Iraq Resolution, marking the successful culmination of WHIG’s systematic campaign to bypass constitutional separation of powers through coordinated congressional deception. The signed authorization represents not …

George W. Bush White House Iraq Group U.S. Congress Constitutional Framework Andrew Card +4 more whig constitutional-crisis separation-of-powers executive-power congressional-manipulation +4 more
Read more →

Banking Crisis Accelerates with 2,300 Bank Failures in 1931 as Hoover Resists Federal Intervention

| Importance: 9/10

A second wave of banking panics erupts in June 1931 centered in Chicago, where depositor runs beset networks of banks that had invested in declining real estate assets, resulting in approximately 2,300 bank suspensions during 1931—significantly more than the 1,350 failures in 1930. The crisis …

Herbert Hoover Federal Reserve American bankers depositors financial-crisis banking great-depression deregulation institutional-failure
Read more →

California Gold Rush Enables Massive Land Speculation Fraud and Corruption Schemes

| Importance: 7/10

The California Gold Rush of 1849 created a lawless environment that enabled systematic land fraud and banking corruption as the region lacked effective legal institutions. When gold was discovered at Sutter’s Mill, California remained technically under American military occupation following …

Palmer (San Francisco banker) Pio Pico Peralta family California state government systematic-corruption land-speculation financial-fraud institutional-failure economic-extraction
Read more →

Jefferson Denounces Corrupt Bargain as Betrayal of Democratic Principles

| Importance: 6/10

Thomas Jefferson and other Democratic-Republican leaders spent 1826 denouncing the Adams-Clay arrangement as a fundamental betrayal of democratic principles, helping Jackson’s supporters organize what would become the Democratic Party. Jefferson had privately expressed horror at the …

Thomas Jefferson Andrew Jackson Democratic-Republican Party Reform Movement systematic-corruption democratic-erosion political-reform institutional-failure party-realignment
Read more →