Madoff’s big diversion for his family

March 14, 2009

(ChattahBox) — Bernard Madoff has pleaded guilty and been locked away hopefully for the rest of his life for his nearly $65 billion Ponzi scheme scam. Because Madoff pleaded guilty without a deal with prosecutors, he was and is under no obligation to cooperate. If he had gone with “not guilty”, he could have probably bought himself another year of bail. Many burned investors and legal experts believe he is sacrificing himself to protect his wife, his family and friends. Madoff’s wife, Ruth; brother, Peter; and sons, Mark and Andrew; have not been accused of any wrongdoing as of yet.

Even though he admitted that his investment advisory business was crooked, Madoff insisted to U.S. District Judge Denny Chin that while his investment advisory outfit was a fraudulent hole, his company’s proprietary trading and market-making operations were “legitimately and honestly run businesses”.  But unhappy investors who lost their fortunes with Madoff believe others were involved. Andrew and Mark, were senior executives on this “honest” side of the Chinese wall. Madoff’s 63-year-old brother, Peter, was in charge of trading. It is almost inconceivable that Madoff could have spent 20 years taking clients’ money and conducting virtually no legitimate transactions, without anybody at Madoff Investment Securities noticing – even if, as he asserts, he was deliberately employing under-qualified staff with no expertise in the securities industry.
Meanwhile Madoff and his wife had $823 million in assets at the end of last year, including $22 million in properties stretching from New York to the French Riviera, a $7 million yacht and a $2.2 million boat named Bull, according to a document his lawyers filed yesterday. Lawyers have sought to separate her from Madoff’s interests as his thousands of victims and prosecutors ramp up efforts to retrieve the money he stole over at least two decades. Madoff’s wife Ruth will be heavily scrutinized to see whether her real estate holdings and millions in cash are related to her husband’s Ponzi scheme. The US attorney’s office is still trying to resolve what is tainted or clean money, and will want to see personal bank statements, credit card receipts, tax returns and canceled checks, as well as her business records. Many angry investors suspect their money ended up in Ruth Madoff’s hands. Madoff and his lawyers are  claiming that the Manhattan apartment and an additional $62 million in bonds and cash can be kept from investors because they are in Ruth Madoff’s name and unrelated to the fraud. Attorneys and investment specialists say  Ruth Madoff will have a difficult time proving her assertion that up to $69 million of the couple’s wealth was unrelated to her husband’s Ponzi scheme. Criminal and civil auditors are also interested in the $15.5 million Ruth Madoff withdrew from an account in Massachusetts last year, including $10 million on the day before her husband surrendered.


12 Responses to “Madoff’s big diversion for his family”

  1. Steve Savasky on March 14th, 2009 10:14 am

    Mr Madoff wants to be out of jail until sentencing.
    I say NO Way. What’s wrong with sentencing him
    now. Why Wait. ..NO reason to wait.

  2. alfonso freda on March 14th, 2009 11:03 am

    and if he were italian………….they’d be talking organized crime…lol

  3. alfonso freda on March 14th, 2009 11:05 am

    no ”crime family” here…………………………………

  4. alfonso freda on March 14th, 2009 11:06 am

    you better wise up america ……….see ya

  5. John on March 14th, 2009 11:17 am

    Right on Alfonso—the term no one dares to utter is “the Jewish Mafia”. They have written the convoluted banking laws that enabled them to convert all the money to their personal fortunes and now the bastards want us to cover their theft. Greedy, greedy bastards. When will people have the guts to call it as it is?

  6. Jim on March 14th, 2009 11:42 am

    Any funds that can be located in the family should be stripped and used to pay back some of the investors.

    The family should be penniless when they finish going through the money trails.

    Not one cent should be left to any family members .

  7. Justice on March 14th, 2009 11:45 am

    Had this bum gotten his mitts into my family’s savings. I would feel obliged to remove his children from this world. He should know what real loss is. Like the loss if this pigs family line on this earth.

  8. Heinrich on March 14th, 2009 12:19 pm

    The only difference in the Scilian mafia and the Jewish mafia is that the Italian deal in drugs, prostitution, etc. while the Jewish mafia members like Bernie Madoff and his ilk steal with pen and paper. I have heard that two victims have comitted suicide and other greedy Jews were attracted by the high “return” on their investments. You would think they would have been smart enough to NOT put all of their investment “eggs” in one basket; therefore at least some of them deserve what they got out of sheer greed.

  9. Thomas on March 14th, 2009 1:14 pm

    Seems to me his wife is in possession of stolen goods and should be arrested for aiding and abetting

  10. SFJoe on March 14th, 2009 3:56 pm

    John and Henrich seem to be your typical White Aryan Nazi types. One Jewish person does something wrong and they want to start blaming all jews.
    I thought those ideas were dumped after the second world war. Wake up it’s 2009.

  11. Micheal Mouse on March 14th, 2009 4:34 pm

    Job opening: Run Ponzi scheme for 20 years, steal 62 billion, live like a king and leave family 823 million plus billions in off-shore accounts. Get out on bail, Have heart attach and live out the rest of your life on the government sponsored wealthy-people-protection-program, with kenny lay for company.

  12. Ben F. on March 15th, 2009 3:07 pm

    Enough with “.. he stole $65 billion”.. Once again, the media is maligning the minds of everyone. Ponzi schemes are real simple: take from one and give to another. Sure, you peel off a little bit off of the top for yourself and your overhead, but the money simply went through one big virtual laundry machine.
    Investor A. deposits $1000.

    He gets a ‘dividend’ check the next month for $100, and an account statement that says he earned the $100 in profit, and the remaining $1000 is still working.

    Investor A calls Investors B. and tells him how great this is. Investor B deposits $1000.
    And so on and so on and so on.. See the real insight at ” Bernie’s blog”..

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