Judge Jails Madoff, Accepts Guilty Plea
Update: 11:16 am: Sentencing will be June 16. The Government asked for immediate jailing. CNBC and CNN report the Judge said he intends to grant the request and order Madoff into custody immediately. It's done.
Update 10:55 am: The Judge has accepted the guilty plea. The Government is telling the judge how the scheme operated. The victims who object to the plea are now being heard. Next issue should be bail.
Update: 10:47 am ET: CNBC Updates: [More...]
"The victims of my schemes included individuals, charities, pension funds and hedge funds."....Madoff made a distinction between his investment business which was the fraud and the other businesses which he said were legit. "The other businesses were legitimate, profitable ...in all respects and those businesses were run by my brother and my sons," said Madoff.
Madoff also said he "knowingly gave false testimony under oath" to the SEC, and admitted "my fraud was (submitting) audited reports to the SEC." And Madoff said "My clients ... receiving account statements had no way of knowing ..." what he was doing.
Update: 10:35 am ET: Via AP Twitter: Madoff says the Ponzi scheme began in the early 1990s in response to a recession. Via Reuters Twitter:
Madoff says for many years he operated a Ponzi scheme and tells court he is "deeply ashamed for my crimes"
Update: 10:11 am ET: The hearing is underway. He's pleading guilty as expected.
Bump and Update: 9:30 a.m. ET: The hearing begins at 10:00 am. Here is the Judge's press release on how it will proceed. The DOJ's webpage for Madoff with lots of links is here. The transcript of Tuesday's hearing is here (pdf.) As to who is live-blogging from the courthouse: AmLaw is one. I'm also following others on Twitter.
Grim Choices Await Madoff If Jailed Today
7:20 am ET: At this early hour, it's still not known whether the Government will seek to have Bernard Madoff's bail revoked when he pleads guilty this morning. Bloomberg has this rundown of possible institutions Madoff may end up at if jailed today:
Until sentencing: MCC New York or MDC Brooklyn.
Both house criminals from “swindlers to murderers".... The “bleak” MCC is “horrendous,” according to defense attorney Sam Schmidt, who visits the jail several times a week..... Conditions are worse at the Brooklyn jail, according to a court filing by Flora Edwards, a lawyer for fund manager Raffaello Follieri ...Edwards’ filing described the MDC as having an “intolerable” stench and free-roaming rats.
After sentencing: Probably a medium or low security prison (not a camp right away) like Federal Correctional Institution in Oakdale, Louisiana, FCI Butner, North Carolina or F.C.I. Otisville, New York. The low security facility next to the camp at Fort Dix, N.J. is another possibility. Alan Ellis, attorney and author of the Federal Prison Guidebook says:
The addition of money-laundering charges “may make this a life sentence” and push Madoff into a medium-security prison, at least at first, Ellis said. “Where you end up has as much to do with where the BOP has a bed open as your sentence.”
I still don't understand why a 70 year old man who has never been behind bars is going to plead guilty so early in the process and willingly submit to what all experts agree is a life sentence. Could there be an agreement to let him stay out until sentencing? That's about the only thing that makes sense to me -- other than him not showing up at all. Stay tuned.
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