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Madoff's Statement
Here's the full text of Bernad Madoff's statement made in court this morning, in which he admitted his crimes and described them in detail.
Madoff pleaded guilty to all 11 counts on which he was charged, in connection to a multi-billion dollar financial fraud.
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Josh
Zachary
He went in to rather great detail. My only question is if his other two businesses were actually legitimate, or if he was just trying to cover for his sons. I have a hard time believing his sincerity, but this was a very interesting read.
March 12, 2009 4:50 PM | Reply | Permalink
Madoff's trading business wasn't legitimate. He was using the money from his investment advisory business to prop up his trading business and its books. Basically he was laundering the funds via London to go back to his investment banks accounts to prop up their earnings. Let's say he was doing a global transaction version of three card monte.
Madoff statement to the court was full of lies, and he was trying to hide the lies with his "it is all my fault" defense. His Investment Bank was just as much as a charade as his Investment Advisory business. They were charging stock commissions on trades they never did. Huge amount of cash were going from JP Morgan Chase to Madoff Securities in London and back to Madoff Securities accounts at the Bank of New York. Of course his investment bank look legitimate, their Bank of New York accounts were full of money!
As much as the Investment Advisory business was a mess, the books for the Securities side of the business were just as sloppy.
Bernie Madoff is trying very hard to keep the illusion that his trading side of his business was legit, to protect his brother and mainly his sons. His brother is doomed. He was chief compliance officer for the entire Madoff business, and a partner in Cohmad, besides a partner in the Madoff office in London.
March 16, 2009 1:58 PM | Reply | Permalink
They REVOKED his bail! Hoo. Ray.
March 12, 2009 5:33 PM | Reply | Permalink
To the best of his recollection, the fraud began in the early '90s, thereby letting Frank Avellino, Michael Bienes and Steve Mendelow off the hook.
If we believe Bernie, he generated returns of 13% to 20% consistently and legitimately from 1960 to 1992.
Thirty years and he never made a wrong call.
Color me skeptical.
March 12, 2009 7:10 PM | Reply | Permalink
I think the proper investigative trail is to follow the accountants in Bernie Madoff's life. Paul Konigsberg who held ownership in Madoff's London office, Steven Mendelow, the principal at Konigsberg's firm to Madoff's father in law, who started to feed accounts to his son in law from clients in the Borscht Belt.
From Carl Shapiro's quote on how he first did business with Madoff, by executing a trade in three days, to some of the hijinks of his mother and father with the SEC, Madoff didn't learn the scam overnight. He probably started it in the early 1960s.
He put his own signature by laundering the money, and his sales pitch of stock split conversion... He needed accountants to put a veneer of legitimacy on the scam, besides keeping it going.
March 16, 2009 1:29 PM | Reply | Permalink
Maybe that non-existant wrong call started the theft?
March 12, 2009 7:28 PM | Reply | Permalink
Is it correct and/or are there similarities between Mr. Madoff and Enron/then Citigroup,Chairman,Rubin and Ms. Hilary Clinton/Mr. Mark Rich,Commodity Trading and other so-called concerns, schemes and/or allegations and for our US Executive, Legislative and Judicary to fully act as expected especially to the full and complete US Constitutional, Bill of Rights mandate(s) with forthright Transparency, Oversight and Accountability and within the False Claims Act and the 'FEDERAL EMPLOYEE WHISTLEBLOWER PROTECTION RESTORATION ENHANCEMENT ACT'(!!!!!) and without the implementation of the death penalty, torture, illegal secercy, illegal war, illegal rendition, etcetra?
Would it be a welcome and needed expected compliment to and for all to bring back Habeas Corpus, fair and equal Representation for all and within the proper and forthright endeavors towards respect and regards to our US Constitution, Bill of Rights mandate and Declarations towards God, Man and Country with the endeavors towards Life, Liberty and the Pursuit of Happiness for All?
March 13, 2009 8:15 AM | Reply | Permalink