Title: The Madoff Case
Description: Breathtaking Grey Area Stuff
beemoe - January 3, 2009 12:56 AM (GMT)
Any opinions on this work of art? Fifty-billion dollars stolen and without firing a shot! Go Figure.
That`s more loot than The Outfit, The Gambinos, The Siculianas and The Cali boys put togheter.
Craig - January 4, 2009 12:49 AM (GMT)
Like the modern day Outfit says, "Why kill a guy if he falls behind on his debts?", "We just accept the loss and label the guy as a deadbeat".
The Outfit has learned to be more secretive, and their business sense runs like the Madoff scandal.
beemoe - January 6, 2009 05:31 AM (GMT)
Very well said Craig. It`s funny how the white-collar boys keep seting new records for greed.
GangstersInc - January 6, 2009 10:24 AM (GMT)
It is the biggest moneymaker with the lowest risk. But to get that far up the ladder is not easy, so it is not easy money per say, but at a certain point it is easy money.
An article about Madoff:
Bernie Madoff's actions 'amount to obstruction of justice,' say prosecutors
BY THOMAS ZAMBITO and DOUGLAS FEIDEN
DAILY NEWS STAFF WRITERS
Updated Monday, January 5th 2009, 10:58 PM
Arch-swindler Bernie Madoff is still playing the big con, prosecutors said Monday.
He secretly mailed more than $1 million in jewelry and valuables to family and friends in the days after his arrest, a federal prosecutor charged.
Assistant U.S. Attorney Marc Litt demanded the fallen financier be jailed without bail - branding him a flight risk who violated a court order that froze his assets.
"The case against the defendant is strong - and continues to get stronger," Litt told Magistrate Judge Ronald Ellis in Manhattan Federal Court.
"His recent actions amount to obstruction of justice" and a clear-cut breach of the terms of his $10 million bail, Litt said.
Clad in a crisp and expensive charcoal gray suit with a black tie, the accused mastermind of a $50 billion Ponzi scheme sat silently with a bemused look on his face.
At issue were five packages Madoff or his wife, Ruth, mailed on Christmas Eve containing several antique watches, jewelry, cuff links and other heirlooms that the feds estimate to be worth more than $1 million.
With the FBI watching the scamster 24-7, he quietly transferred the items - 13 days after his arrest - to a son, a daughter-in-law, his brother Peter and a friend in Florida.
At the time, he was under detention in his East Side penthouse.
Joel Sinkin, who fears money he invested with Madoff is gone, said word that the disgraced moneyman was moving jewelry left him "disgusted."
"This is just another dart in the back of us investors who trusted our retirement money to him and more," Sinkin said.
Madoff's lawyer Ira Sorkin minimized the mailings. He said the cuff links were worth only $25 and mittens he sent were valued at $200. Sorkin declined to put a value on the watches or Madoff's wife's jewelry.
To comply with a court order, the Madoffs met with their lawyers on Dec. 30 to compile a list of their financial assets, and during that meeting they mentioned mailing the packages, Sorkin said.
"They were told, 'You can't do that, you have to give it back,'" Sorkin said. "There was no attempt by Mr. Madoff or Mrs. Madoff to violate the terms of their bail."
That will be up to Ellis, who will rule later this week on the prosecutor's request to toss Madoff back in jail.
Meanwhile, a House committee met to determine how the Securities and Exchange Commission could have probed Madoff's operation eight times over the past 16 years - and never came close to uncovering fraud.
"Many of us have lost confidence in the SEC," said Rep. Carolyn Maloney (D-Manhattan). She joined a chorus of angry lawmakers who howled about chronic regulatory failures.
x-man - January 6, 2009 02:10 PM (GMT)
media now say colombian cartels and russian mob also involved in Madoff Case.
also they talked about a man with italian name that was one of Madoff contact men..don't know about mafia connection.
Hollander - January 6, 2009 06:01 PM (GMT)
|QUOTE (x-man @ Jan 6 2009, 08:10 AM)|
|don't know about mafia connection.|
beemoe - January 7, 2009 03:01 AM (GMT)
I`m pretty sure the Madoff Thang may have some underworld aspects......I mean we are talking about offshoring at its finest. I can imangine Lucy Komisar having a field day with this.
I agree Dave getting to the top in the white-collar rackets takes several years and a higher level of education but man the rewards are sooooooooo much greater and risk of capture are less. I have more to say on this.
Hollander - January 26, 2009 12:12 PM (GMT)
Feds say Bernard Madoff's $50 billion Ponzi scheme was worst everhttp://www.nydailynews.com/news/ny_crime/2...llion_ponz.html
Hollander - January 26, 2009 12:17 PM (GMT)
Experts: No evidence that Madoff's firm executed even a single tradehttp://www.nydailynews.com/money/2009/01/1...fs_firm_ex.html
bourbon - January 27, 2009 12:54 AM (GMT)
Bernard Madoff, the Mafia, and Naked Short Selling
, by Mark Mitchell. DeepCapture, January 19th, 2009.
Hollander - March 12, 2009 04:19 PM (GMT)
Madoff: 'I knew this day would come'
One of Wall Street's biggest swindles ends in guilty plea on 11 charges. Judge orders him to jail.
Last Updated: March 12, 2009: 12:09 PM ET
NEW YORK (CNNMoney.com) -- Bernard Madoff, who stole billions from investment clients, was ordered jailed Thursday after pleading guilty to all 11 criminal counts in one of Wall Street's biggest swindles ever.
"I operated a Ponzi scheme," said Madoff to the packed courtroom, after U.S. District Judge Denny Chin told him to explain his crimes.
"I thought it would end quickly, but it proved impossible," said Madoff, who stole from more than 4,000 victims through his investment firm. "I am ashamed for these criminal acts. I always knew this day would come."
U.S. District Court Judge Denny Chin remanded the 70-year-old to jail following his confession.
He could face a maximum 150-year sentence. His sentencing was set for June 16.
Madoff admitted that he never invested his clients' money, and that he deposited the funds into a "Chase Manhattan" bank.
"When money was requested, I paid it out from the Chase account," he said.
As Madoff wrung his hands and made other nervous gestures, the judge suggested that he pour himself a glass of water.
Madoff created a decades-long scheme in which new investments were used to fund payoffs to earlier investors, to falsely create the appearance of legitimate returns.
Richard Friedman, an accountant who said he lost $3.1 million to Madoff, told CNN that he hopes Madoff is sentenced to the full 150 years and that he "lives a very long life" in prison.
"The crime is really unimaginable," said Friedman. "It's not just a typical Ponzi scheme. It affects society as a whole. You don't just have to be a Madoff investor to be affected by this."
Friedman also blamed the Securities and Exchange Commission for allowing the scheme to go undetected for so long, and said that Madoff's family members are probably complicit and should go to prison.
"There's no way he could have acted alone," said Friedman. "There had to be other people involved. The whole family, as far as I'm concerned, once proof becomes available, should be thrown in jail."
In Thursday's court proceeding, Madoff faced many of his alleged victims -- with 50 courtroom seats reserved for them. Some of the investors entrusted all their savings to his firm, Bernard L. Madoff Investment Securities LLC.
0:00 /2:48 Minnesota's Madoff mess
Madoff had successfully avoided detention after his December arrest, posting $10 million bail and cloistering himself with his wife in their $7 million Manhattan apartment.
He was able to remain in his residence, despite accusations from federal prosecutors that he tried to hide his assets from seizure by mailing diamond-studded jewelry to relatives. Only a fraction of the missing money has been recovered.
Allan Chernoff CNN senior correspondent and New York bureau staffers Julian Cummings, Laurie Segall and Deborah Brunswick contributed to this report.
Craig - March 13, 2009 12:50 AM (GMT)
150 years! Salerno and Corallo got 100!
Hollander - April 2, 2009 01:03 PM (GMT)
U.S. marshalls sieze Ponzi schemer Bernard Madoff's 1969 Rybovich luxury yacht in Florida
By Larry Mcshane
daily news staff writer
Thursday, April 2nd 2009, 2:21 PM
Bernie Madoff's 55-foot luxury yacht "Bull" was seized by U.S. Marshals.
A 55-foot luxury yacht and a smaller motor boat owned by jailed con man Bernard Madoff were seized Wednesday by federal marshals in Florida.
The "Bull," a vintage 1969 Rybovich yacht in tip-top condition, and the 24-foot motor boat were grabbed at a pair of marinas down south, said U.S. Marshals spokesman Barry Golden.
The custom-built yacht was worth about $800,000.
The boats were part of the $823 million in assets owned by Madoff and wife Ruth at the end of 2008 - just weeks after the one-time Wall Street wizard admitted running a $65 billion Ponzi scam.
Last week, an attorney involved in the case said French authorities were about to seize Madoff's Chateau des Pins villa - his $1 million, three-bedroom French Riviera hideaway.
Madoff's attorney said the disgraced financier wouldn't fight the seizure.
Federal prosecutors in New York are targeting his penthouse apartment on E. 64th St. and homes in Montauk, L.I., and Palm Beach, Fla.
Authorities hope to use the seized assets to reimburse the hundreds of Madoff victims - although it seems most will only receive a fraction of their lost life savings, retirement funds or other investments.
Madoff remains locked up in the Metropolitan Correctional Center, awaiting his June 16 sentencing. Madoff, 70, faces up to 150 years in prison - a virtual life sentence for the man behind the largest financial swindle in U.S. history.
with news wire services
Paul-Chafs - April 3, 2009 06:29 AM (GMT)
US Marshals yesterday swooped in and seized Bernard Madoff's $11 million Florida mansion -- and all of the pricey contents inside -- hours after grabbing two prized boats belonging to the Ponzi-scheme kingpin.
The dramatic action spurred some burned investors to file court papers seeking to force the fraudster into personal bankruptcy, citing fears the feds won't share his seized loot.
Marshals and Palm Beach cops descended on the five-bedroom mansion just before 6 p.m. on the first day of an effort to seize as many Madoff assets as possible so that his many victims can get at least some compensation for the estimated $64 billion he swindled.
They walked into the mansion through an open back door, setting off a burglar alarm.
"We are seizing the house. We're going to secure the premises," said Marshals spokesman Barry Golden.
The process took hours, as marshals did a complete inventory inside the 5,600-square-foot property and changed the locks. "There are more doors than we expected," Golden said.
Marshals were planning to haul off a black Mercedes-Benz CLK from a garage, but for now are leaving the property's other movable contents inside.
The seizure, authorized by New York federal Judge Denny Chin, comes weeks after federal prosecutors filed with the court a laundry list of Madoff real-estate and other assets they want forfeited.
Some are in Madoff's name, but others -- including the Palm Beach property -- legally belong to his wife, Ruth, who has not been criminally charged.
Earlier in the day, marshals seized Madoff's yacht -- a 55-foot, 1969 Rybovich named "Bull" -- from a marina on Florida's east coast and a 24-foot Madoff motorboat from another marina.
Bull, worth $2.2 million, was treated by Madoff as if it were made from gold. "A lot of money was put into maintaining this boat," said Golden.
Madoff lawyer Mauro Wolfe called the seizures "part of an ongoing process of working with and cooperating with the government."
Wolfe said his client's $7 million penthouse apartment on Manhattan's Upper East Side and a $3 million residence in Montauk, LI -- which authorities have said they want to seize -- "are not the subject of any current liquidation discussions at this time."
Ruth Madoff, who lives in the penthouse, is "not being thrown out on the street and we're working very closely with the government to try and resolve these issues," Wolfe said.
That didn't reassure some wary victims, who filed their bankruptcy petition in Manhattan federal court.
The group of investors said it is "unclear" how the government plans to divvy up Madoff's assets, and "efficiency and fairness . . . dictate coordinated proceedings in the bankruptcy court."
The Madoffs' Palm Beach neighbor Chris Lehman said the Ponzi scammer "deserves to have everything taken. A lot of people in this town are very upset."
Giuseppe - June 16, 2009 10:19 PM (GMT)
Madoff 'took rest of our lives'
The judge who will sentence the disgraced US financier Bernard Madoff has received more than 100 letters from angry victims of Madoff's fraud.
Victims have written to New York District Judge Denny Chin, calling Madoff a "monster", with some equating his crimes with those of murderers.
In March, Madoff pleaded guilty to 11 charges that he masterminded a $50bn (£35bn) investment fraud.
He will be sentenced on 29 June and could be jailed for up to 150 years.
At the age of 71, Madoff is likely to spend the rest of his life in jail.
"Please don't let his brilliant criminal mind loose to do it again," wrote Steve Norton, who lost $1.1m in retirement money. "He took the rest of our lives. Don't give him his back."
Judith Welling of New York said Madoff should be placed "in a prison commensurate with his crimes, ie with other convicted murderers, for that is the ultimate result of his crimes".
Judge Chin received 113 letters and e-mails from people who had lost money in the Madoff scandal. Many urged him to sentence Madoff to the maximum 150 years in prison.
Madoff's lawyer, Ira Lee Sorkin, said he would address the letters his submissions to the court or at the time of sentencing.
beemoe - June 17, 2009 01:07 AM (GMT)
Interesting: That Ivar Kreuger did the same thing on a bigger scale (in yesterdays dollars). Has anybody read Frank Partnoy`s new book "The Match King?"
Hollander - June 23, 2009 11:24 AM (GMT)
MADOFF'S MADE MEN
3 FROM FEEDER FIRM COHMAD CHARGED IN DECEPTION
By KAJA WHITEHOUSE
Last updated: 3:44 am
June 23, 2009
Posted: 3:04 am
June 23, 2009
Four machers who the feds say were key to Ponzi schemer Bernard Madoff's multibillion-dollar investment scam were sued yesterday by the Securities and Exchange Commission for recruiting unwitting victims to participate in Madoff's $65 billion ruse.
The SEC accused three top executives at Madoff feeder firm Cohmad Securities with running the firm as the fraud's "façade," and of "knowingly or recklessly" contributing to the scam in exchange for more than $100 million in fees over the course of two decades.
Irving Picard, the trustee for the liquidation of Madoff's operations, followed the SEC's suit with one of his own, asking the US bankruptcy court to force these people to give the $100 million to investors.
Charged in the SEC suit were Cohmad Chairman Maurice "Sonny" Cohn, 78, his daughter Marcia Cohn, 49, who served as Cohmad's chief operating officer, and Robert Jaffe, 65, a Cohmad vice president who's been widely credited with corralling Palm Beach, Fla.'s wealthy set into the Madoff scam.
Madoff co-founded the firm with Cohn in 1985, thus explaining the "Coh" and "Mad" in the company's name.
Ever since Madoff was arrested in December, Jaffe has become notorious for having directed an estimated $1 billion worth of investor money into Madoff's sham investment firm. Indeed, Jaffe, known in some circles as "the recruiter," has been accused of trading on his marriage to Ellen Shapiro, the daughter of well-known philanthropist and garmento Carl Shapiro, to lure clients from the clubby world of Palm Beach, Fla., particularly members of the exclusive Palm Beach Country Club.
At the center of the SEC's allegations is a claim that Cohmad was merely a front for funneling money into Madoff. The agency also accused the defendants of acting as shills who purported to be doing investors a favor by providing access to Madoff's supposedly exclusive club of clients.
However, it turns out that ensnaring people into the Madoff scheme was Cohmad's main business, and that the company drew most of its earnings from Madoff, who often paid the defendants directly, bypassing Cohmad entirely, the SEC said.
In a separate case, the SEC also sued Beverly Hills-based investment adviser Stanley Chais, accusing him of lying to investors that he was the one managing their money when in fact it was Madoff. The SEC claims that Chais and his family between 1995 and 2008 withdrew from Madoff's firm about $500 million more than they had invested.
Madoff earlier this year pleaded guilty to bilking investors of billions, and is scheduled to be sentenced on Monday. He faces up to 150 years in prison.
Giuseppe - June 25, 2009 06:13 AM (GMT)
Madoff asks for 12 years in jail
Madoff is likely to spend the rest of his life in prison
Disgraced US financier Bernard Madoff's lawyer has said his client deserves 12 years in prison for his crimes.
In March, Madoff pleaded guilty to 11 charges that he masterminded a $50bn (£35bn) investment fraud.
He will be sentenced on 29 June and could be jailed for up to 150 years. Madoff is 71 years old now.
New York District Judge Denny Chin has received more than 100 letters from angry victims of Madoff's fraud, with some calling him a "monster".
Madoff's lawyer, Ira Lee Sorkin, urged Judge Chin to "set aside the emotion and hysteria" that surrounds the case.
"We seek neither mercy nor sympathy," Mr Sorkin wrote in court papers.
WHAT IS A PONZI SCHEME?
A fraudulent investment scheme paying investors from money paid in by other investors rather than real profits
Named after Charles Ponzi who notoriously used the technique in the United States in the 1920s
Differs from pyramid selling in that individuals all tend to invest with the same person
But victims of Madoff - who admitted operating a massive Ponzi scheme for decades - were unmoved by the plea.
"If he was hung by his toes for 12 years then maybe that sentence would be acceptable," said Candace Newlove of Colorado, who said her family was ruined by Madoff.
Judge Chin received 113 letters and e-mails from people who had lost money in the Madoff scandal.
Many urged him to sentence Madoff to the maximum 150 years in prison.
Giuseppe - June 28, 2009 09:33 AM (GMT)
Court deal strips Madoff wealth
Madoff has admitted fraud and will be sentenced next week
A US court has stripped disgraced financier Bernard Madoff and his wife of their wealth.
Madoff forfeited rights to assets totalling $170bn (£103bn) - the figure prosecutors said passed through his investment firm over the years.
His wife Ruth agreed to forfeit $80m in assets - including property - but was left with $2.5m in cash.
In March Madoff, 71, pleaded guilty to masterminding a $50bn investment fraud and will be sentenced on Monday.
He has asked for a 12-year term, but prosecutors say they are seeking one of 150 years.
Losses identified as fraud currently exceeded $13bn, prosecutors said.
The $80m forfeited by Ruth Madoff - who is not facing charges - includes the couple's Manhattan home, another also in New York and a house in Florida.
Bernard Madoff has admitted defrauding thousands of investors in a Ponzi scheme he said had been running since the early 1990s.
Giuseppe - June 29, 2009 11:03 AM (GMT)
Madoff faces sentencing in court
Some Madoff victims say they have lost life savings
Financier Bernard Madoff is to be sentenced on Monday for plotting a $50bn (£30.3bn) investment fraud.
The disgraced financier, 71, who pleaded guilty in March, could face a sentence of 150 years.
Madoff's lawyer is asking for a 12-year sentence. The hearing is scheduled to start at 1000 local time (1400 GMT).
Prosecutors have promised to seize his assets and make him to pay restitution, but it remains unclear whether former investors will get any money back.
In a preliminary hearing on Friday, judge District Judge Denny Chin ordered Madoff to forfeit $171bn in assets, while his wife Ruth had to forfeit more than $80m in net worth she claimed was hers.
Victims of Bernie Madoff's scam, Cindy and Richard Friedman
The giant figure Madoff was ordered to forfeit was equal to the sum prosecutors said had passed through his investment firm over the years. In practice, however, such funds do not exist.
Under the order the Madoffs must sell a $7m Manhattan apartment where Ruth Madoff lives.
Other assets to be sold include an $11m estate in Palm Beach, Florida, a $4m home in Montauk and a $2.2m boat.
But an agreement with prosecutors has enabled Ruth Madoff to keep $2.5m in cash.
Bernard Madoff has admitted defrauding thousands of investors in a Ponzi scheme which he said had been running since the early 1990s.
He pleaded guilty to 11 charges in March, including securities fraud and money laundering.
Many investors have written to the judge, with some saying entire life savings have been lost and mortgages are not being paid, following the fraud.
Only 10 have said they wish to speak out in court. Madoff will read a statement before the judge hands down a decision.
According to court papers, 1,341 account-holders lost a total of about $13bn in the fraud.
Ira Sorkin, Madoff's lawyer, said his client "will speak to the shame he has felt and to the pain he has caused".
"We seek neither mercy nor sympathy," said Mr Sorkin. But he has asked Judge Chin to "set aside the emotion and hysteria attendant to this case," as he determines the sentence.
However, the sentence is expected to be long.
"Given the enormous amount of funds he has stolen and the number of victims, the sentence is going to be very, very high," said Paul Radvany, a law professor at Fordham University in New York.
The hearing will take place in a courtroom that can accommodate 250 people.
Two separate rooms in lower Manhattan courthouse will house former investors and spectators to watch on closed-circuit TV.
Madoff started his financial career aged 22 with $5,000 from money made from summer holiday jobs such as working as a garden sprinkler installer in New York.
He then set up Bernard L Madoff Investment Securities in 1960.
His firm became one of the largest market-makers - matching buyers and sellers of stocks - and Madoff served as chairman of the Nasdaq stock exchange.
As well as wealthy individuals, investment advisory firms were key Madoff investors.
Madoff's firm was investigated eight times by the US Securities and Exchange Commission over the past 16 years, because it made exceptional returns.
But it was the global recession which effectively prompted Madoff's demise as investors, hit by the downturn, tried to withdraw about $7bn from his funds and he could not find the money to cover it.
He has always insisted he acted alone in masterminding the fraud.
The only other person who has been charged is his accountant David Friehling, 49, with aiding and abetting fraud, and four counts of filing false audit reports. He has been released on bail.
Though Mr Friehling was not charged with knowledge of the Madoff Ponzi scheme, he was charged with deceiving investors by falsely certifying that he audited the financial statements.
Hollander - June 29, 2009 03:41 PM (GMT)
Dead man walking? Bernie Madoff to be sentenced Monday
BY Thomas Zambito
DAILY NEWS STAFF WRITER
Updated Monday, June 29th 2009, 10:07 AM
Bernard Madoff will be back in court for his sentencing on Monday.
Monday is Judgment Day for Ponzi swindler Bernie Madoff - and many observers think it's a safe bet he'll never be a free man again.
That's just fine with some of the victims of his $65 billion scheme - the largest swindle in history.
At least 10 of Madoff's victims have asked Manhattan Federal Court Judge Denny Chin to speak in the huge ceremonial court, which was picked for the proceeding because it can hold 250 people.
The victims are expected to urge Chin to deliver the maximum punishment - 150 years - as a symbolic, if not realistic, indication of the pain the white-haired, 71-year-old scammer has caused to thousands of people around the world.
On Friday, Chin ordered Madoff's wife, Ruth, to give up her deluxe $7 million upper East Side apartment, and sell off the couples' Montauk beach house and Palm Beach mansion as part of a $170 billion forfeiture.
In letters to the court, the 10 victims and some 100 others poured out their anger and anguish at having lost life savings, their children's inheritance or being forced to reenter the workforce years after retirement.
"My father trusted Bernie and would roll over in his grave if he hasn't already done so to know that his trust in Madoff left my mother and his daughter in extremis," Manhattan financier Donald Schupak wrote.
Schupak said his 94-year-old mother and blind sister have been left penniless.
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"Madoff's lack of remorse other than of having been caught and his efforts to shield collaborators deserve in my opinion public airing from victims," he added.
Carla Hirschhorn of Manalapan, N.J., says she and her husband, Stanley, lost the money they'd saved to send their daughter to college. Her mother has been forced to live on a Social Security check.
"I want Bernard Madoff to get the maximum sentence," wrote Hirschhorn, who also asked to speak. "He has destroyed us. We are not wealthy, fancy people. Never were, never will be."
She and others are expected to rail at regulators from the Securities and Exchange Commission for failing to catch Madoff.
"We were devastated by the SEC's failure to uncover Madoff's fraud and its continued stamp of approval bestowed on Madoff over the course of his crime," Hirschhorn wrote.
For Madoff, who will be able to swap his prison uniform for a fresh suit and tie picked out by Ruth, it will likely be the last contact he has with the finery that once was a constant in his New York-to-Paris lifestyle.
The Rockaway lifeguard who made it big stealing other people's money over three decades is expected to make a short statement about the "shame" he feels for his crimes, his lawyer said.
That will be little consolation to his many victims, who include Hall of Fame pitcher Sandy Koufax, Mets owner Fred Wilpon, talk show host Larry King, studio exec Jeffrey Katzenberg and famed director Pedro Almodovar.
Madoff also ripped off millions from major Jewish organizations, including Yeshiva University, the Elie Wiesel Foundation for Humanity and the Gift of Life Foundation, a Jewish bone-marrow registry.
Most well-known victims have not written to the judge.
Those who have shared their stories with Chin in more than 100 pages of e-mails and letters are more like Rosalind Sabella Clark, 61, of San Anselmo, Calif.
"I am a small fish in a large pool of Madoff's players, neither rich nor famous," wrote Clark, who says she lost her $250,000 life savings.
"I [have] worked 39 years in family businesses, paid my taxes, lived an honorable life. Now my family suffers at the hands of Bernard Madoff.
"My grandchildren will suffer. I do not see his family suffering. They are still leading lives of excess."
Read more: http://www.nydailynews.com/money/2009/06/2...ixzz0JplwsPAt&C
Giuseppe - June 29, 2009 04:43 PM (GMT)
Madoff jailed for 150 years
June 29 2009
International fraudster Bernard Madoff has been jailed for the rest of his life for swindling investors out of billions of dollars.
The 71-year-old was sentenced to 150 years after he, 10 of his victims and lawyers on both sides had addressed the court.
Dozens of those who lost fortunes in his pyramid-based Ponzi investment fraud that lasted decades filled the New York courthouse having spent hours queueing to get seats.
Madoff, a former Nasdaq chairman, pleaded guilty to securities fraud and other charges in March and has since been held in jail.
Victims who lost millions of dollars had described their ruined lives to judge Denny Chin.
Madoff, wearing a dark suit, white shirt and a tie, sat and listened as they described how he wrecked their financial security, and urged he be sent to prison for life.
"Life has been a living hell. It feels like the nightmare we can't wake from," said Carla Hirshhorn.
"He stole from the rich. He stole from the poor. He stole from the in between. He had no values," said Tom Fitzmaurice. "He cheated his victims out of their money so he and his wife Ruth could live a life of luxury beyond belief."
Dominic Ambrosino called it an "indescribably heinous crime" and urged a long prison sentence so "will know he is imprisoned in much the same way he imprisoned us and others." He added: "In a sense, I would like somebody in the court today to tell me how long is my sentence."
Madoff's lawyer had asked a judge to give his client 12 years behind bars. Prosecutors sought the maximum 150-year term.
Giuseppe - July 1, 2009 10:38 AM (GMT)
Mrs Madoff speaks: 'I'm a victim too'
Ruth Madoff, at her husband's side for 50 years, broke her silence to express not just her sympathy for the victims of Bernard Madoff's gargantuan fraud, but also to align herself as one of those victims.
In her first public statement, addressed through her lawyers to the Madoff investors bilked out of their life savings, she drew two portraits of the man who was her high-school sweetheart.
"I am breaking my silence now, because my reluctance to speak has been interpreted as indifference or lack of sympathy for the victims of my husband Bernie’s crime, which is exactly the opposite of the truth.
"From the moment I learned from my husband that he had committed an enormous fraud, I have had two thoughts - first, that so many people who trusted him would be ruined financially and emotionally, and second, that my life with the man I have known for over 50 years was over. Many of my husband’s investors were my close friends and family. And in the days since December, I have read, with immense pain, the wrenching stories of people whose life savings have evaporated because of his crime.
"My husband was the one we (and I include myself) respected and trusted with our lives and our livelihoods, often for many, many years, and who was respected in the securities industry as well. Then there is the other man who stunned us all with his confession and is responsible for this terrible situation in which so many now find themselves. Lives have been upended and futures have been taken away. All those touched by this fraud feel betrayed; disbelieving the nightmare they woke to. I am embarrassed and ashamed. Like everyone else, I feel betrayed and confused. The man who committed this horrible fraud is not the man whom I have known for all these years.
"In the end, to say that I feel devastated for the many whom my husband has destroyed is truly inadequate. Nothing I can say seems sufficient regarding the daily suffering that all those innocent people are enduring because of my husband. But if it matters to them at all, please know that not a day goes by when I don’t ache over the stories that I have heard and read."
Mrs Madoff lived high on the hog from her husband's crimes. She was as involved as he was in the scam he played on the wealthy elitists who bragged about their membership of the Madoff's inner circle. I have no sympathy for these so called 'victims' they were stupid and irresponsible in the extreme. Mrs. Madoff claims sympathy for the victims, but there's no sign of her comfortable lifestyle changing. She's not divesting herself of her ill gotten gains. Mr. and Mrs. Madoff are rotten crooks, but their victims are no saints either.
Giuseppe - July 3, 2009 02:07 PM (GMT)
Giuseppe - July 5, 2009 02:30 PM (GMT)
Giuseppe - July 5, 2009 05:03 PM (GMT)
From The Times
Bernard Madoff hires help to survive hard time
Bernard Madoff has hired a veteran prison consultant to help him to find the best possible jail in which to serve his 150-year sentence for Wall Street’s biggest fraud.
After his sentencing this week Madoff, now Prisoner No 1727-054, met Herb Hoelter, of the National Centre for Institutions and Alternatives, whose previous clients include the jailed Sotheby’s chairman Alfred Taubman and the financiers Michael Milken and Ivan Boesky.
The draconian maximum sentence imposed by the judge means that Madoff, 71, will be assigned to a tougher category of prison than most white-collar criminals.
He could be forced to mingle with murderers, rapists, drug-dealers and white supremacist gangs with a hatred of Jews. Madoff is Jewish.
He could even find himself incarcerated with terrorists in the infamous “Supermax” jail in Florence, Colorado.
“He was incredibly disappointed. He knew he was going to spend the rest of his life in prison. I don’t think that was ever an issue,” Mr Hoelter told The Times. “But it’s patently unfair to cast him as a symbol of all evil.”
Federal convicts are assigned to minimum, low, medium, high-security prison, or even the sole Supermax facility, by the US Bureau of Prisons using a score-card known as Form BP-337 to calculate an inmate’s “Security Point Total”. A first-time non-violent white-collar criminal convicted in a US federal court would normally qualify for incarceration at a minimum-security “prison camp” with easygoing rules and no perimeter fence. But the length of Mr Madoff’s jail term means that he has no hope at all of going to one of them.
“Independent of the length of his sentence, he would score out as a minimum-security inmate,” said Mr Hoelter. “But because of the length of his sentence, they apply a ‘public safety factor’ and would never put him in a minimum security facility.”
Madoff’s lawyer asked the judge to recommend that he should serve his term in the medium-security Otisville Correctional Institute, 70 miles from New York, which has an unusually large Jewish inmate population. The judge refused.
A sentence above 30 years usually places an inmate in a high-security category, meaning that Madoff would be assigned to a prison housing violent offenders including murderers and rapists. Ed Bales, of Federal Prison Consultants, which is not involved in the case, said that Madoff was likely to be held in isolation, known as “the hole”, at least at first.
“He could cause a lot of problems because it’s a very high-profile case. People may react very badly to him,” Mr Bales said. “He is going to have white supremacists who do not like the Jewish population. He has got some enemies he is going to have to face.” It is even possible that Madoff could be upgraded for his own safety to the only Supermax facility, where inmates are locked up for 23 hours a day and never get to mix with the general prison population.
John Webster, of National Prison and Sentencing Consultants, said: “Next to being a sex offender, people who are perceived as stealing from the elderly are not perceived as very popular folk in prison. Everyone has a mother. I think there is going to be some form of retaliation.”
Mr Webster, a lawyer who once served a 13-month sentence for lying to investigators, said that white-collar criminals often struggled to adapt to jail. “I have a former client who is a judge,” he said.
“The first time he was brought to an isolation unit in handcuffs, he said to the guard, ‘Would you get me a coffee?’. That was a guy who did not realise where he was yet.” Mr Hoelter says that Madoff can at least look forward to moving from the Metropolitan Correctional Centre in Manhattan, where he has been held since pleading guilty in March.
The centre is a maximum-security prison. “He has been incarcerated under very difficult conditions in these past months. Anywhere he goes is likely to be better than where he is now, unless they throw him into the Supermax,” he said. “He will be able to get exercise. He will be able to do something that makes him productive. He may be able to tutor other inmates.”
beemoe - July 8, 2009 07:06 PM (GMT)
That doesn`t surprise me Guiseppe, that Madoff did big business and kickbacks in Austria. Austria has on of the best bank secrecy laws in existence. And that includes Switzerland.
Giuseppe - July 15, 2009 12:14 PM (GMT)
From The Times
July 15, 2009
Fraudster Bernard Madoff denied an easy ride in soft-touch prisonJames Bone in New York
The multibillion-dollar swindler Bernard Madoff will serve his time for Wall Street’s biggest fraud alongside an Israeli spy and an Islamic terrorist. Madoff, now Prisoner No 61727-054, was transferred yesterday to a prison in North Carolina, where he will serve his 150-year sentence for running a $65 billion pyramid scheme.
The US Bureau of Prisons rejected Madoff’s request to spend the rest of his life at the Otisville Correctional Institute, 77 miles from his home. Instead, the 71-year-old will be incarcerated at the Butner Federal Correctional Complex, which lies 480 miles from New York, where Madoff’s wife and two sons live — just within the Bureau of Prison’s 500-mile guideline for visits.
Madoff’s sons have cut off all contact with their father since he confessed to his fraud but a Madoff adviser says that the estrangement is “lawyer enforced” because of the continuing investigation. The fraudster hopes eventually to receive visits from his sons.
Butner comprises two mediumsecurity prisons and a low-security facility in the same place, which could make it easier for Madoff to transfer to a lower security jail in the future. Among the inmates at the complex is Jonathan Pollard, the former US navy officer convicted of spying for Israel in 1987, who is scheduled for release in 2015. Omar Abdel-Rahman, the blind Egyptian sheikh jailed for life in 1995 for plotting a “day of terror” in New York, has been held there since 2007.
The Butner complex was named one of America’s ten cushiest prisons by Forbes magazine. The magazine noted, however, that it is “no Club Fed”. Federal prisons, sometimes dubbed Club Fed because of their easygoing rules and lack of a fence, are only for inmates serving less than ten years.
Butner does house other white-collar criminals, such as John Rigas, the founder of Adelphia Communications, and his son, Tim, the company’s chief financial officer, who were convicted of fraud. Franklin Brown, the former vice-chairman of Rite Aid Corp, is serving a ten-year sentence at Butner.
Madoff is likely to be held in solitary confinement, at least at the beginning of his sentence, because he is considered at risk of revenge attacks.
Hollander - July 20, 2009 01:14 PM (GMT)
BERNIE IN THUGS' SIGHTS
PONZI SCHEMER'S FELLOW NC INMATES TALK ABOUT 'SMACKING HIM AROUND'
By DOUGLAS MONTERO in Butner, NC, and DAN MANGAN in New York
A PENTHOUSE IT AIN'T: Bernard Madoff, here in his booking mug shot, is now at the Butner Federal Correction Complex.
Last updated: 9:02 am
July 20, 2009
Posted: 2:25 am
July 20, 2009
Watch your back, Bernie!
Bernard Madoff's fellow inmates at a North Carolina federal prison -- where the Ponzi schemer arrived just last week -- are discussing beating him up to boost their jailhouse reputations, The Post has learned.
"Some of the guys were talking about smacking him around a little, just to get the notoriety of it," said a source who has a relative locked up with the 71-year-old Madoff.
But other convicts have no beef with Madoff and are even a bit impressed by him and the way he has handled himself since arriving at the Butner, NC, prison complex, the source said.
Some of his fellow inmates, in fact, respect him for being a stand-up guy who pleaded guilty without implicating any of the other people strongly suspected of helping him pull off the fraud that swindled more than 1,000 people out of more than $65 billion over two decades.
"He got a lot of respect from other inmates because he didn't tell on anybody, he didn't take everybody down with him," the source said.
"Some of the inmates admired that."
The source provided the first glimpse into Madoff's life behind bars -- revealing his sadness at ruining his wife Ruth's life, his new "job" and his new diet.
Every day's a bad hair day for Bernie, who was shocked at seeing how much his hair had grown and how unkempt it has looked since he was incarcerated in March.
"When I finally looked in the mirror, I scared myself, because I haven't seen myself in four months, and my hair was everywhere," Madoff told fellow inmates last week.
Madoff entered Butner on Tuesday after a nearly 40-hour trip that began at the Metropolitan Correctional Center in lower Manhattan, where he had been locked up since pleading guilty in March.
Madoff now is being housed at Butner's medium-security facility No. 1 -- one of four lockups at the prison, which is considered one of the cushiest places to do time in the federal correction system.
The huge, gray octagonal facility sits off a country road behind a high fence topped by barbed wire.
Most of the inmates in No. 1 are, like Madoff, white-collar criminals who do not have a propensity for violence.
At his previous residence, the Metropolitan Correctional Center, Madoff was kept in "the hole," a unit for high-profile prisoners, including terrorists, who are allowed minimal human contact during the day.
But at Butner -- about a half-hour's drive from the capital city of Raleigh -- Madoff is in a cell in a unit where he is in contact with fellow prisoners throughout the day.
"Everyone knows who he is," the source said of Madoff, who was sentenced to 150 years in prison on June 29.
Since he arrived at Butner, Madoff has only once shown emotion over the impact of his crime, the source said.
"He said that his wife was mad at him because the paparazzi won't leave her alone," the source said, adding Madoff got teary-eyed while making the admission.
Although despised by the public outside, Madoff has gotten good marks inside Butner for falling into the routine without any apparent problems.
He quickly was assigned a job in the prison's engraving section, where he makes desk and door nameplates from 7 a.m. to 2:30 p.m. each day, the source said.
And, as soon as he could, Madoff joined fellow inmates in "the yard" for daily recreation sessions.
During one such session last week, Madoff was hanging out with other inmates watching prisoners play dominoes, the source said.
And he's eating -- without complaint -- the food served in the prison cafeteria.
Last Thursday, Madoff tucked into a fish filet with macaroni and cheese -- a dramatic change from the fare offered in the high-end Gotham restaurants he used to frequent.
At some point, however, Madoff will be allowed to use his prison earnings to buy food from the facility's canteen -- known in-house as the "cantina" -- and cook it in his cell.
Another change for Madoff is his wardrobe.
Instead of custom-made suits worth thousands of dollars, Madoff is now walking around in sweatpants and T-shirts, just like any other jailbird.
"He fits in perfectly. He doesn't have a problem with anybody," the source said.
Madoff has made things easier on himself by dropping the arrogant attitude he often displayed to subordinates and prospective clients when he was running his Ponzi scheme out of his now-defunct Manhattan firm.
"He doesn't act like he's better" than the other inmates, the source said. "But he does hold his head up.
"If you didn't know who he was, you probably wouldn't know any better," the source said.
"He blends in."
"He's a regular dude," the source said. "He's a really good guy, he's nice."
Giuseppe - July 30, 2009 07:21 PM (GMT)
July 30, 2009
Madoff says surprised not caught earlier Christine Seib, New York
Bernard Madoff was surprised that America’s top securities regulator did not uncover his $65 billion (£40 billion) Ponzi scheme sooner, the convicted fraudster told lawyers.
In his first interview since he was jailed two weeks ago, Madoff, 71, spoke openly about his long-running scam and expressed remorse for cheating thousands of people.
The Securities and Exchange Commission (SEC) was embarrassed to have missed Madoff’s fraud, despite having many meetings with the fund manager, who also advised the watchdog on how to regulate markets. “There were several times that I met with the SEC and thought ‘they got me’,” Madoff told Joseph Cotchett and Nancy Fineman, attorneys from San Francisco.
The lawyers met Madoff at Butner Federal Correctional Complex in North Carolina on Tuesday after they threatened to sue his wife, Ruth, on behalf of several investors.
The SEC is conducting an investigation into how it failed to uncover the scam, which was revealed on December 11 last year after Madoff confessed to his sons. The watchdog, which was tipped off about Madoff’s activities several times by a private investigator, is due to report its findings within weeks.
Mr Cotchett said that Madoff, who looked fit and healthy at the four-and-a-half-hour meeting, was “candid, very open and answered every one of our questions”. “It was an extraordinary visit,” the attorney said. “I think he’s not too happy to be where he is but he’s certainly not complaining.”
Mr Cotchett declined to provide any detail on Madoff’s revelations about how he conducted his scam since the mid-1990s. Instead, the attorneys plan to use the information when they file a lawsuit this week against Madoff and his brother Peter, who was chief compliance officer at Bernard L Madoff Investment Securities.
Mr Cotchett said that Madoff, who was sentenced to 150 years in prison on 11 charges including fraud, money laundering and perjury, was “very remorseful” and believed that investigators had found all the money that was left to be recovered.
Madoff is believed to have squandered $13 billion by paying existing clients investment returns out of cash from new customers. A trustee appointed by the court has recovered just over $1 billion to be distributed to victims.
GangstersInc - August 18, 2009 08:42 AM (GMT)
Bernie Madoff's biz partner Frank DiPascali beats drug and gun raps
BY Robert Gearty
DAILY NEWS STAFF WRITER
Friday, August 14th 2009, 4:00 AM
An artist's sketch shows Frank DiPascali, the finance chief at Bernard Madoff's investment advisory business, center, in New York.
Bernie Madoff''s right-hand man still faces life in prison - but will beat the rap on drug and gun allegations under the terms of his plea deal.
Frank DiPascali pleaded guilty earlier this week to conspiracy, securities fraud, money laundering and tax evasion, waiving indictment.
But it was only revealed on Thursday that DiPascali cut a deal that lets him off for past drug use and for owning an unlicensed gun up until last week.
The seven-page agreement was made public by prosecutors.
In it, the feds say they will write a letter to DiPascali's sentencing judge that will spell out his cooperation. That letter would allow the judge to give DiPascali a reduced sentence.
As it stands now, DiPascali faces life in prison after pleading guilty to 10 crimes. He is being held without bail at the Manhattan Correctional Center.
DiPascali was denied bail after pleading guilty, much to the delight of Madoff's Ponzi scheme victims.
Manhattan Federal Court Judge Richard Sullivan said he was concerned that DiPascali might try to flee if he was released on bail.
Read more: http://www.nydailynews.com/money/2009/08/1...l#ixzz0OWRLI4Dk
Junior - May 2, 2010 11:02 AM (GMT)
From The New York Post
1 May, 2010
Madoff family facing criminal tax charges
The feds are readying tax charges against Bernard Madoff's sons and brother over their fraud-fueled, lavish lifestyles.
Andrew and Mark Madoff, along with their uncle Peter Madoff -- who all reaped major rewards while working for the arch scammer -- are expected to be busted later this year, sources told The Associated Press yesterday.
Prosecutors are trying to build a securities-fraud case, but will file tax-fraud charges if there's not enough solid evidence that they helped Bernard Madoff pull off his record $65 billion Ponzi scheme, the AP reported.
Previously filed court papers have accused Madoff's kin of living a "decadent" lifestyle funded with money stolen from investors in his crooked securities firm, which they allegedly used as a family "piggy bank."
Records show cash transfers that paid for a $4.3 million Manhattan apartment for Andrew and a $6.5 million Nantucket home for Mark and his wife, Stephanie, while Peter Madoff got a $9 million loan.
In addition, Madoff's relatives went on wild spending sprees using corporate credit cards.
Although Bernard Madoff insisted that he acted alone, his former right-hand man, Frank DiPascali Jr., has since pleaded guilty to conspiracy and fraud, and is cooperating with authorities.
His assistance has been cited in charges filed against three other former Madoff employees, including ex-operations chief Daniel Bonventre, who allegedly oversaw more than $50 million in loans to Madoff relatives and "key employees" who were never required to pay back the cash.
At least two more former employees are expected to be charged before the feds zero in on Madoff's kin, according to the Associated Press.
Martin Flumenbaum, a lawyer for Mark and Andrew Madoff -- who claim they turned their father in to the FBI after he confessed to them -- said he was "not aware of any factual basis" to support charges against them.
Lawyers for Peter Madoff didn't respond to requests for comment.
Junior - October 27, 2011 02:13 PM (GMT)
Fraudster Bernard Madoff and wife 'attempted suicide'
BBC News, October 26, 2011
The wife of jailed US financial swindler Bernard Madoff has said the couple attempted suicide after his $65bn (£41bn) fraud scheme was exposed.
Ruth Madoff told the CBS programme 60 Minutes the couple took a "bunch of pills" on Christmas Eve in 2008.
"I don't know whose idea it was, but we decided to kill ourselves because it was so horrendous what was happening," she said.
Madoff is serving a 150-year jail sentence after being convicted in 2009.
Ruth Madoff told CBS that the couple had made the suicide pact on Christmas Eve, which - she continued - added to "the whole depression".
"I took what we had, he took more," she said, adding that she did not drink any alcohol with them for fear of vomiting.
Among the pills were Ambien (a sedative) and possibly Klonopin (for seizure and panic disorder treatment).
"We took pills and woke up the next day... It was very impulsive and I am glad we woke up", Mrs Madoff said.
The interview in full will be broadcast on CBS on 30 October.
Junior - March 19, 2012 02:45 PM (GMT)
New York Mets owners reach settlement with Bernie Madoff victims, will pay $162 million
By Teri Thompson, Christian Red And Michael O'keeffe, New York Daily News
Monday, March 19, 2012
The long and brutal battle between the trustee for the Bernard Madoff bankruptcy case and the owners of the New York Mets ended Monday when the owners agreed to pay $162 million to the victims of the massive Ponzi scheme. All of the owners' claims as "net losers" in the case can also proceed under the settlement, meaning they will attempt to recover around $178 million from the liquidation themselves.
Fred Wilpon, Saul Katz and their partners in Sterling Equitiess reached the settlement with trustee Irving Picard on Saturday, U.S. District Judge Jed Rakoff in Manhattan said as jury selection was to begin in court Monday.
Rakoff ruled on March 5 that the Mets defendants must give up as much as $83 million in so-called fictitious profits from Madoff’s Ponzi scheme and face a jury trial over an additional $303 million, while Picard could pursue "fictitious profits" and principal for only two years. The central issue in the trial was whether the owners could prove that they didn't have knowledge of Madoff's fraud or act in bad faith as they invested millions over many years.
While the owners agreed to allow Picard to extend his pursuit of funds to six years in the settlement, a key issue for Picard's pursuit of other Madoff's "net winners"' claims, he also said he would not pursue the "willful blindness" theory, meaning Fred Wilpon and Saul Katz can now attempt to rebuild their reputations and proceed with running their baseball team. The Mets owner will not have to pay anything for three years
"In a sense, we are partners now. Negotiations were very solid, very business-like," said Picard's top lawyer, David Sheehan, which is a far cry from the fierce battle the sides have fought since news of Picard's sealed lawsuit leaked to the media Dec. 2010.
The settlement negotiated by former Gov. Mario Cuomo is binding, meaning all appeals will be dropped. "The deal removes the sword of damocles hanging over their lives," Cuomo said of the battering the Mets owners have taken over the past 15 months. "The damage done by Madoff is irreperable, this settlement was fair and reasonable."
Junior - June 28, 2012 11:09 AM (GMT)
Peter Madoff, brother of Ponzi king Bernie Madoff, to plead guilty for his role in $65 billion scam and get just under 10 years in jail
By Robert Gearty and Tracy Connor, New York Daily News, Wednesday, June 27, 2012
Peter Madoff is following in big brother Bernie’s footsteps — right to the Big House.
In a plea deal with the feds, the younger Madoff will admit Friday that while he was chief compliance officer for the family-run firm — in charge of making sure everything was legit — he lied to investors and falsified documents.
While scam mastermind Bernie Madoff is serving 150 years for the $65 billion swindle, his kid brother will get just 10 years under his agreement with Manhattan prosecutors.
Peter, 66, will also be on the hook for $143 billion in criminal forfeiture and has agreed to surrender all his assets to satisfy a fraction of that bill.
“It’s about time,” said lawyer Jerry Reisman of Garden City, L.I., who represents 39 victims who say they lost a combined $150 million.
“Hopefully they can now have a family reunion.”
A law school grad who worked with Bernie for more than 40 years, Peter profited handsomely from the partnership.
He owned a 14-room mansion on four acres in Old Westbury, L.I., and a $5.5 million Palm Beach home, and drove a green 1958 Aston Martin worth a quarter of a million bucks. The court-appointed trustee in the case accused Peter of using the Madoff firm as a personal piggy bank, pocketing $61 million of investors’ money.
After 1995, he only deposited $14 into his private investment account yet took out $16 million — and he billed the company for everything from fishing tackle to lavish dinners. As he battled civil suits after the Ponzi scheme unraveled, Peter Madoff claimed he didn’t know Bernie had dummied up financial statements to make investors believe they were getting rich when their accounts were really empty.
Reisman said he never bought the pleas of ignorance.
“[Peter] obviously appeared to be part of the acts perpetrated by Bernie Madoff. He was there and his right hand. Bernie Madoff could not act without Peter.”
His clients had direct dealings with the younger Madoff, he said.
“When they couldn’t reach Bernie Madoff, they would be dealing with Peter,” Reisman said.
Peter Madoff's lawyer, John Wing, did not return calls Wednesday. His client will be the first Madoff kin to plead guilty since Bernie’s 2009 conviction.
It’s unclear what that means for two other family members trustee Irving Picard has accused of looting the coffers — Peter’s daughter, Shana, a compliance officer at the firm, and Bernie’s son, Andrew. Bernie’s other son, Mark, committed suicide after being sued.
Junior - June 29, 2012 07:25 PM (GMT)
Peter Madoff, Bernie Madoff’s younger brother, pleads guilty to conspiracy in Ponzi scheme
By Robert Gearty and Corky Siemaszko, New York Daily News, Friday, June 29, 2012
Peter Madoff blamed his big brother Bernie for leading him into temptation before pleading guilty Friday to his role in a Ponzi scheme that wiped out thousands of investors.
Insisting he had no idea that his brother had been scamming people, Peter told a judge he “was in shock” when Bernie finally told him in December 2008 and ordered him to start cutting checks to pay back favored friends and family.
“I was shocked and devastated but nevertheless I did as my brother had said, as I had consistently done for decades,” the weepy crook said. “I knew that the conduct was wrong and I am deeply ashamed.”
Those checks never mailed. And in a plea deal with the feds, Peter admitted that while he was chief compliance officer for the family-run firm — in charge of making sure everything was legit — he lied to investors and doctored documents.
Dressed in a gray suit, Peter entered his plea in the same Manhattan courtroom where his Ponzi king brother admitted stealing billions from investors two years earlier.
But while Bernie was sentenced to 150 years in prison for the $65 billion swindle, Peter got just 10 years under his agreement to plead guilty to conspiracy.
Peter, 66, is also on the hook for $143 billion in criminal forfeiture and has agreed to surrender all his assets to satisfy a fraction of that bill. He remains free on a $5 million bond secured by $1 million cash until formal sentencing on Oct. 4.
Peter will have to say adios to the 14-room mansion on four acres in Old Westbury, L.I., the $5.5 million Palm Beach palace and the vintage green 1958 Aston Martin sports car worth a quarter million bucks.
When he was sentenced, Bernie Madoff told the court he had kept his brother and two sons and his wife, Ruth, in the dark about what he was doing.
Prosecutors, however, did not believe him. They noted that Peter and Bernie had been in business together for 40 years.
“Peter Madoff enabled the largest fraud in human history,” said U.S. Attorney Preet Bharara. “We are not yet finished calling to account everyone responsible for the epic fraud of Bernard Madoff and the epic pain of his many victims."
“The Madoff investment empire, built on a foundation of deceit, was a house of cards that grew to skyscraper proportions,” added FBI Assistant Director Janice Fedarcyk, whose men arrested Peter at his lawyer’s office earlier Friday. “As Peter Madoff has admitted today, he was one of the chief architects.”
The court-appointed trustee in the case accused Peter of using the Madoff firm as a personal piggy bank, pocketing $61 million of investors' money.
After 1995, he deposited only $14 into his private investment account yet took out $16 million — and he billed the company for everything from fishing tackle to lavish dinners.
Called to account, Peter Madoff played dumb, insisting he had no idea his brother had finagled the financial statements to make investors believe they were getting rich when their accounts were really empty.
But the feds said Peter knew exactly what was going on. He often signed off on weeks of compliance reports in one sitting, using different pens to make it look like he was reviewing them regularly. He also arranged for his wife to get a no-show job at the family firm.
“For decades, he certified that periodic reviews established the firm's compliance with internal and regulatory rules,” Fedarcyk said. “In fact, Peter Madoff conducted no reviews.”
Peter Madoff is the first member of his fiendish family to plead guilty since Bernie's 2009 conviction.
His jailing raises questions about the fates of the two other family members trustee Irving Picard has accused of thievery — Peter’s daughter, Shana, a compliance officer at the firm, and Bernie’s son, Andrew.
Bernie's other son, Mark, committed suicide after being sued.
Junior - July 20, 2012 07:15 PM (GMT)
Peter Madoff's Park Avenue apartment on the block for $4 million
By Gina Pace, New York Daily News, Thursday, July 19, 2012
The Park Avenue co-op owned by swindler Bernard Madoff's younger brother is on the market in New York City for $4 million.
Proceeds from the sale of Peter Madoff's home will be turned over to the U.S. Marshals Service.
It is part of a forfeiture agreement that Madoff and his family agreed to when he pleaded guilty to fraud charges last month.
The Wall Street Journal reports that the asking price is about $100,000 less than what the Madoffs paid for the pad in 2004. Madoff spent nearly a million dollars renovating the ritzy pad by converting the three bedroom co-op into a two-bedroom unit, according to the Journal.
The listing for the apartment, held by Prudential Douglas Elliman, describes a "mint condition" home complete with maid's quarters, state-of-the-art appliances and pre-war details like beamed ceilings, hardwood floors and a wood-burning fireplace.
Madoff agreed to serve 10 years in prison and surrender all his assets when he pleaded guilty to conspiracy and falsifying records.
Sentencing is set for Oct. 4.
Bernard Madoff is serving a 150-year prison term for the largest Ponzi scheme in history.