Tag: Bernie Madoff
Bernie Madoff was recently interviewed in prison by Financial Times. Like always, he takes full responsibility and insists none of his family members were involved. He says his illegal activity began in the 90's. The trustee has said Bernie's illegal activities began in the 80's. He also predicts the trustee will not only recover all the principal invested by the victims, but some profits as well:
“I said at the very beginning when I met with the SEC and Picard that my hope is that everyone will receive their principal [which amounts to $20bn]. Back then, everyone laughed. But [Picard] has already recovered $10bn and he will cover $20bn easily. If he is successful, he may get $50bn. That means that there will be $30bn profits to go around, which would make me one of the greatest money managers in modern history.”
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New York Magazine has an in-depth, 6 page article on how Bernie Madoff is faring in prison. He's a hero, groupies and all.
Based on interviews with two dozen current and former inmates, and a lawyer he gave an interview to after his arrival, a portrait emerges: Repentent? Not one bit. He's had enough of that.
“F*ck my victims,” he said, loud enough for other inmates to hear. “I carried them for twenty years, and now I’m doing 150 years.”
His Ego: Fully intact. Everyone wants his opinion about business. His closest buddies: those doing huge sentences like him, including convicted spy Jonathan Pollard and Mob Boss Carmine Persico. [More...]
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A follow-up investigation by the Wall St. Journal on the discredited reports that Bernie Madoff was beaten in prison last fall, disputes the denial by the Bureau of Prisons and, based on accounts by former and current inmates at the prison, reports he was attacked by another inmate over money, and sustained a broken nose and fractured ribs.
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The local tv station in Raleigh, NC, that originally reported Bernie Madoff's hospital visit was the result of an assault, is now reporting he fell out of bed and suffered facial bleeding as a result. His lawyer says he suffers from dizziness and high blood pressure.
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The Bureau of Prisons has confirmed that Bernie Madoff has been transferred from the medium security prison section of Butner Correctional Complex to its Federal Medical Center. It won't say why, but months ago denied he had been diagnosed with cancer or was terminally ill.
The Federal Medical Center at Butner last week housed 946 inmates . It's an administrative facility that houses male inmates of all security levels.
Being sent to a medical center doesn't mean you're catastrophically ill. Former Congressman Randy "Duke" Cunningham is serving his sentence at the Butner Medical Center, as is blind Sheikh Omar Ahmad Rahman (sentenced to life.)
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Sometimes cooperating with the Government doesn't pan out the way you thought it would. Bernie Madoff's CFO Frank DiPascali, Jr. learned that the hard way Tuesday.
After pleading guilty to an Information containing ten counts (pdf), carrying a possible sentence of 125 years in prison for which his sentencing guideline range would be life in prison, and agreeing to forfeit $170 billion (with a "b" as the judge pointed out) plus another $250 million, the issue of bail pending sentencing came up. The transcript of Tuesday's hearing is here (pdf).
DiPascali, 52, is cooperating, in hopes of avoiding a life sentence. He worked for Madoff for 30 years and admitted participating in the fraudulent scheme and cooking the books for 20 of them and lying to the SEC in 2006. He saw the light in December, 2008 -- 8 months ago. Since then, he's been a model citizen, reporting almost daily to meet with FBI agents and help them unravel what he and Bernie did. The Government agreed to recommend bail (pdf).
The Judge was having none of it. Not because he wanted to punish DiPascali, but because he doesn't trust the fraudster or his recent conversion to Truth, Justice and the American Way. [More...]
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Bernie Madoff is scheduled to be sentenced June 29. His lawyers are requesting a sentence of less than life in prison for the 71 year old financier. They request 12 years, or a 15 to 20 year sentence. They say he has a life expectancy of about 13 years.
You can read his lawyers' letter here (pdf.) In the letter, they attach life expectancy information and data on the sentences in other fraud cases.
The Government has filed 140 pages of e-mails and letters from victims.
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U.S. Marshals today seized Bernie Madoff's Palm Beach mansion and two boats.
The 2008 property tax bill was $157,298. Golden said the estate would be "monitored and maintained" and is no longer considered Madoff's property.
Other properties the U.S. is going after that will cost a pretty penny to maintain: [More...]
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It appears Madoff, facing a probable sentence that will exceed his life span, will leave prison only when he's dead.
Since the Government can continue the investigation into his relatives and friends, it's hard to figure why his lawyers didn't draw out the process, insisting on an Indictment. He would have had the protection of the 5th amendment until his appeals of any conviction were done and been able to sleep at his Park Ave. penthouse rather than MCC or an FCI for at least two more years. [More...]
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A federal prison inmate in South Carolina has filed a motion seeking to intervene in a Securities Investor Protection Corporation lawsuit against Bernie Madoff. He accuses Madoff of promising inmates a 16.9% return on their investments, but instead sending their money to Switzerland.
Even stranger, the inmate claims he had an intimate relationship with Madoff and that they met at Harmony.com.
That claim, of course, raises a bit of a flag, since eHarmony has refused until this year to match same-sex couples.
But never mind that little fact. Mr. Riches says in his motion that Mr. Madoff was attracted to his identity theft skills and that he schooled the former Nasdaq chairman on how to commit fraud for two years. Mr. Riches also claims he has “documents, photos, exhibits and phone transcripts” that contain “juicy details” about Mr. Madoff, now 70, that he wants to share with the court.
The motion was denied by a bankruptcy judge who told the inmate to file a claim in bankruptcy court like everyone else. He also noted that this particular inmate has filed over 1,000 lawsuits in the past 3 years, mostly against famous people.
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Bernie Madoff is in more hot water. He and his wife mailed packages of jewelry and other personal effects to their sons and a few others last week, in violation of a court order preventing him from transferring assets.
The Government asked the Court to revoke Bernie's bond. The Court has ordered briefs.
Bernie's lawyer also now disputes he is cooperating with the Government. He said that it's the company that is cooperating.
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