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Madoff Had Signed Checks To Employees In Desk At Time Of Arrest
The Wall Street Journal is reporting on its homepage that, according to prosecutors, Bernard Madoff had $173 million in signed checks made out to his friends and employees in his office desk at the time of his arrest.
News reports immediately after Madoff's arrest revealed that, after confessing the alleged fraud to his sons, he asked them for time to distribute bonuses to his firm's employees.
From the Journal at the time:
Mr. Madoff told them he planned to surrender to authorities, but first, he wanted to pay certain employees portions of the $200 million to $300 million dollars that was left.
And earlier this week, the Associated Press reported:
Prosecutors on Monday said disgraced financier Bernard Madoff violated bail conditions by mailing about $1 million worth of jewelry and other assets to relatives and should be jailed without bail.
Investigators have been working to figure out what Madoff did with the billions he's alleged to have stolen.
Yesterday, the Journal reported that shortly before his arrest, Madoff received $250 million from Carl Shapiro, an early friend and backer, in what was believed to be an effort to stave off his firm's collapse.













If Shapiro loaned $250 million to Bernie ten days before Bernie was exposed, then Shapiro only had $50 million of his own money invested with Bernie before then.
Did Shapiro have $250 million in liquid investments he could just fork over to Bernie?
Boy, I bet Shapiro is going to be really ticked off when he finds out Bernie borrowed the $250 million to pay bonuses to his employees.
(LOL - The Shapiro story sounds as contrived as the "bonus checks in the drawer" story and "the Madoff boys went straight to the FBI" one.)
January 8, 2009 2:06 PM | Reply | Permalink
Good grief. A firing squad would be too good for this guy.
January 8, 2009 3:52 PM | Reply | Permalink
One possibility is that Madoff is just completely round the bend; the other is that he was being crazy like a fox. Acceptance of those bonus checks would have effectively made all the other members of the firm complicit in his crimes, and vastly expanded the set of people against whom enforcement action would have to be undertaken. Which in turn would have made it easier for Madoff to get away with tricks like mailing assets to friends for "safekeeping".
January 9, 2009 10:12 AM | Reply | Permalink