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American Greed Episode 77: Brooklyn's Madoff/ Corrupted Software

Case File

Brooklyn's Madoff / Corrupted Software

A Brooklyn investment manager starts the longest running Ponzi scheme in history. Philip Barry runs his scam from Bay Ridge, a solid working-class neighborhood where families go back generations. Through local connections, Barry pulls more than 800 investors into a $40 million scheme offering "guaranteed returns" on investments. He tells his story exclusively to "American Greed" from prison. And in suburban Chicago, Kevin Carney says he invents a stock trading computer program which delivers an incredible 20 percent return/month and investors line up to give him their money. It's a 19 million dollar scam where investors are burned by Carney's fraud and their own unrealistic expectations.

VIDEOS

  • The Nightmare

    Alex Marchak, a hardworking Brooklyn native, sells his Bay Ridge building and decides to invest his windfall with Philip Barry. When he learns the money is gone, it almost destroys his family.

  • Word of Mouth Investing

    Kevin Carney claims to have invented a new PC program that trades stocks with a 20 percent guaranteed return. When word gets out, and investors make big bucks, hundreds clamor to get in on the deal.

  • He Had Everything Covered

    David explains why Kevin Carney's pitch sounded legitimate.

  • A Threatening Call

    Days before forcing Kevin Carney to declare involuntary bankruptcy, David received a threatening phone call. Listen to his story about the call and subsequent FBI investigation.

WEB EXCLUSIVES

  • By: Illinois Attorney General’s Office

    Kevin G. Carney's plea hearing proceedings.

  • In Philip Barry’s sentencing hearing his victims ask the judge not to be lenient.

  • Philip Barry sent this letter touting The Leverage Group’s services and high returns.

  • Philip Barry explains how prosecutors misrepresented what he was doing and how he intends to prove to the world he is innocent of stealing more than 40 million from 800 investors.