Unfortunately for investors worldwide, such fraud has become commonplace. All told, it looks like Raju manipulated the books by almost one billion dollars. Raju is a graduate of the MBA program at Ohio University, and he’s been hailed as a hero in India for founding Satyam. He was hailed as the Entrepreneur of the Year in 1999, by Ernst and Young. Now his reputation is taking a great hit by recent revelations.

At a time when financial fraud is sucking the life out of equity markets, investors are forced to take a good hard look at the oversight that happened in India involving Satyam. Some are calling for an investigation into PriceWaterhouse, who is the third party auditor for the company. As “Hindu Business Online” notes, the company is already hiding behind client confidentiality instead of openly addressing the scandal.

“We have learnt of the disclosure made by the Chairman of Satyam Computer Services and are currently examining the contents of the statement. We are not commenting further on this subject due to issues of client confidentiality,” the company said in a statement.

It looks like business as usual for a giant fraudulent accounting scandal. First come the revelations. Next, the shock and disbelief of the investors. After this stage, comes anger and demands for accountability. Lastly, acceptance of the situation and punishment for the perpetrators. These cases almost always involve a central figure who was once considered heroic for their rags to riches stories.

One thing’s for certain: in this current economy, a massive accounting fraud of this magnitude cannot be good for Indian business. Investors are already shell shocked from the seemingly endless cases of corruption happening in the world’s market. An emerging market like India needs to be clean in order to keep attracting direct foreign investment.

“The whole affair—already being dubbed India’s Enron—throws India’s corporate governance into sharp relief. That Mr. Raju thought it appropriate to spend $1.6 billion on two firms so unrelated to Satyam’s business and in which he had a financial interest, without seeking shareholder approval, speaks volumes about his sense of what his shareholders would tolerate,” said the Wall Street Journal.

With people already pulling funds from emerging markets, this could signal a stampede. Investors are suffering from stress on all fronts from all corners of the world now and are desperate to find relief in the form of sane accounting rules, ethical corporate governance, and helpful governmental oversight. Since these business leaders (in every nation), have rarely proven the ability to oversee their own affairs ethically, the time has dawned where strict new regulations on accounting, along with oversight with a bite, is needed to restore order to the world’s market.

The story of Ramalinga Raju, although damaging to India’s business economy, is nothing unique to that country. We can expect more and more of these stories in coming months from every sector of the world as the recession exposes the weakness in the remaining bubble markets. As cash flow has dried up and the financial waters have become much more rough in the past year, the rats on the ships have begun feasting at the Captain’s table.

It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:

1. The balance sheet carries as of September 30, 2008

a) Inflated (non-existent) cash and bank balance of Rs 5,040 crore (as against Rs 5361 crore refglected in the books)

b) An accured interest of Rs 376 crore which is non-existent

c) An understated liability of Rs 1,230 crore on account of funds arranged by me

d) An over stated debtor position of Rs 490 crore (as against Rs 2651 reflected in the books)

The revelations are relatively stunning, especially to many Indian workers who hold the company in the highest regard. Of course, shares of Satyam Computers are already being crushed. Several reports say they’re down at least 77% already for the day.

Ramalinga Raju said he’s prepared for the consequences that may come from the law. Of course, the result for workers and investors that believed in Satyam Computers is devastation.

The Federal prosecutors say that Madoff sent over $1 million of jewelry to family members, despite the ongoing investigation into his criminal activities. Madoff is still out on bail, pending a hearing. Madoff posted $10 million bond when he first confessed his crimes to police.

The new, more hostile approach from prosecutors indicate a change in stance towards Madoff. Madoff had been said to be co-operating with the prosecution. Now his lawyers have backed off those claims.

A related sidebar in the Madoff fraud case is that the SEC is now undergoing heavy scrutiny for their continues mis-handling of serious complaints about Madoff’s firm as well as hedge funds that funneled billions to Madoff, without informing clients.

H. David Kotz, inspector general of the S.E.C. promised a full investigation into the matter.

Madoff mailed jewelry to family in December claims prosecutors

Central to the argument that Madoff is a flight risk and should have his bail revoked is the discovery that he mailed jewelry said to be worth $1 million to family members. Plus, Madoff is old, probably still has millions hidden, and is facing a long jail sentence.

“The case against the defendant is strong and it continues to grow stronger as the government’s investigation continues,” United States Attorney Mark O. Litt said. “Given the defendant’s age, the length of the likely sentence, the strength of the proof against the defendant, including his confessions, these facts present a clear risk of flight.”

Of course it seems pretty obvious to most observers that Bernard Madoff should be jailed awaiting his trial. The amount of damage he’s done to his clients and to the public faith in investments should warrant his incarceration.

The Elie Wiesel Foundation for Humanity, which was founded by Elie Wiesel and his wife, Marion after he won the Nobel Peace Prize in 1986, recently announced that their foundation lost everything – more than $15 million dollars – after investing with Bernard Madoff.

Bernard Madoff recently admitted to losing over $50 billion dollars entrusted to his investment company. Madoff told authorities that he used an unsophisticated Ponzi scheme to bilk investors out of their cash.

The Elie Wiesel Foundation operates both domestically and internationally and was set up to remember the Holocaust. The foundation’s mission statement is “to combat indifference, intolerance and injustice through international dialogue and youth-focused programs that promote acceptance, understanding and equality.”

A statement at the Foundation’s website reads,

“We are deeply saddened and distressed that we, along with many others, have been the victims of what may be one of the largest investment frauds in history. We are writing to inform you that the Elie Wiesel Foundation for Humanity had $15.2 million under management with Bernard Madoff Investment Securities. This represented substantially all of the Foundation’s assets.

The values we stand for are more needed than ever. We want to assure you that the Foundation remains committed to carrying on the lifelong work of our founder, Elie Wiesel. We shall not be deterred from our mission to combat indifference, intolerance, and injustice around the world.

At this difficult time, the Foundation wishes to express its profound gratitude for all your support.”

The foundation operates the Beit Tzipora Learning Centers, in Ashkelon and Kiryat Malachi, Israel. These schools enroll more than 1,000 students in after school programs and are role models for other schools. They were named in memory of Elie Wiesel’s sister, who died at Auschwitz.

Elie Weisel is 80 years old and survived the Holocaust.

Whether Wiesel’s foundation will be able to survive through this massive fraud perpetrated under the guise of ‘trust’ remains to be seen.

Bernard Madoff is currently being electronically monitored after posting $10 million bond and investigators in the case continue their probe.

De la Villehuchet, 65, was a co-founder and chief executive officer of Access International Advisors, according to a marketing document. Access, based in New York, invested $1.4 billion with Madoff, who was arrested on Dec. 11 for allegedly running a $50 billion Ponzi scheme.

The death of Rene Thierry Magon De La Villehuchet is “highly likely” to be called a suicide.

Mr De la Villehuchet was a founding partner and chief executive officer of Access International Advisors. Access had reportedly invested $1.4bn with Mr Madoff, who was arrested on December 11. Access raised funds on the European markets to plough into Mr Madoff’s investment fund.

De La Villehuchet had been described in one report as “desperately” trying to recover funds, to no avail. He had been spending “day and night to find a way to recoup his investors’ money.” This included initiating legal action in the U.S.

This recent news comes on the heel of the FBI announcing that their agency is shifting terrorism resources to fight the war on financial fraud. The Madoff mess only gets worse as time roles on.

Follieri has been charged with bilking investors out of millions.

Prosecutors allege Mr. Follieri duped several investors, including a California-based investment fund, into giving him millions of dollars for real estate investments. Instead, prosecutors allege Mr. Follieri used the cash to pay for a variety of personal expenses including his condo, $3,000 suits, and orthodontic expenses for his father.

He also allegedly used the money to pay for a $107,000 vacation in the Dominican Republic and dog walking services. Mr. Follieri even allegedly used $30,000 of investor money to fly his doctor to London from New York to treat him for a minor medical treatment, billing the service as a “house call.” He also allegedly set up an offshore company in Panama that siphoned off $3 million.

Who the heck spends $107,000 on a vacation to the Dominican Republic? Apparently someone with lavish tastes and enough bamboozled clients to live the lifestyle of the rich and the famous, at least for a little while.

Apparently Follieri was dumped by Hathaway recently. Follieri has been in the U.S. since 2003.