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Madoff's Guilty Plea Scam
Despised financial fraud Bernie Madoff may have one last scam in him. And this one may be the biggest and most infuriating of all. He may sleaze his way out of rotting away his last days in prison. Loud bells and whistles went off that that could happen when Madoff suddenly dropped any pretense of a court fight and said he'd plead guilty to every fraud, perjury, and embezzlement charge that the Feds could slap on him.
For the official record Madoff will be hit with an 11-count indictment. The maximum penalty is 150 years in prison. But that's just on paper. Bells sounded louder that Madoff could evade his full prison due when U.S. District Judge Denny Chin who presumably will sentence Madoff said that he'd sharply limit the number of Madoff victims who get to shake their fist in the swindler's face and tell him what a rat he is during an upcoming court hearing. Bells sounded even louder when Chin said that he would take weeks maybe even months to sentence Madoff. Meanwhile Madoff will continue to piddle about in his $7 million dollar Manhattan penthouse.
But the Madoff bells really went off the decibel chart when prosecutors said that they'd tap Madoff for $170 billion in criminal forfeitures. That sounds impressive but it may not be anywhere near the amount of money that Madoff stole, squandered, or stashed away in vaults and mattresses, in dummy accounts, and with friends, associates, wives and mistresses. If Madoff does indeed dupe the government hangman, it won't be much of a surprise.
Prosecutors in recent years have arguably gotten much tougher on corporate chiselers than in years past. Federal sentencing commission stats show that white collar crooks are likely to do more time for fraud, embezzlement, forgery and counterfeiting than street crooks serve for possession of drugs or firearms. But that tells only part of the story.
The sentencing commission study did not break down the numbers of those sentenced by the size or scope of the crime or the wealth of the individual offender. Most of those that do time for white collar crimes are not the rich and famous, corporate big shots, but relative small fry cheats. The rub is that the judge ultimately decides what the sentence will be. The sentences they mete out in most cases are lighter than the maximum sentences allowed, sometimes much lighter.
The Madoff case is a near textbook example of the deferential treatment that judges and government prosecutors give to fat cat white collar crooks versus that given to the small fry white collar criminals and street criminals. Madoff was granted and easily made bail, is confined to house arrest, kept his penthouse's luxury furnishings, and had the court give a nod to his age and health considerations. Madoff's attorney have sought and got delays, and thwarted prosecutor's requests to have his bail revoked when they found he was sneaking jewelry to his relatives. All the while, the court and prosecutors have kept his legion of accusers and victims at arms length. And now Judge Chin has set no date for sentencing.
Madoff almost certainly will do some jail time. How much is anybody's guess. It's that guess that gives hint that Madoff may have one more scam up his sleeve, and that's scamming his sentence.
Earl Ofari Hutchinson is an author and political analyst. His new book is How Obama Won (Middle Passage Press, January 2009).
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Sentencing an old man to prison for 150 years may satisfy people's need for revenge but what good is it if his victims dont get any of their money back? By pleading guilty he took the goverments main weapon from them.
You are right it's a scam and the deal is (I don't have to reveal anything and will get an early release so I can spend my last years doing what I have been doing). You can't do anything about these guys but crush them like a malevolent insect. If he has pleaded guilty does this mean he will not be interrogated to learn what happened and how so preventive measures can be made and monies discovered and attached or is this just another rip off, the cumulative insult to our collective ego's.
I hear rumor that Bernie, amongst other things, was a prolific launderer of funds, mega funds, the linkage to which would prove incriminating if not embarrassing to many a well connected person. Ahhh yes... the plea. it solves so much public tedium.
This is what is being said. Madoff is not cooperating with the Feds. Madoff is not going to give up info that would lead to his brother, two sons, daughter, and wife's arrest. He does not want any of them going to jail, and is willing to be the sacrificial lamb. That's all he really would be able to offer and the Feds won't deal on that basis, they believe they can get the evidence without his info. His wife was the accountant, his brother and sons were in charge of the supposed legit arms. However, the Feds already showed money being transferred out to London, then back, to these supposed legit busineses. So,Madoff, is saying to the Feds, go ahead do it..but not with my help.
I must say, that something about this guilty plea does seem fishy. It will be interesting to see what becomes of this. I did notice however, that he seems to have lost the self-satisfied smirk from his face.
What's fishy about it? If the man is guilty that can be proven by the auditor who is checking his operations. So why would he plead innocence? An innocence plea does not buy you anything in the US legal system if the facts are against you. However, if you save the court a lot of costs and work by pleading guilty, they can reduce your sentence.
I believe that Madoff has billions squirreled away in untouchable numbered offshore accounts. He can trade some (but not all) of this money for lenient or negligle jail sentencing.
I thought in this country the judged gets to decide the penalty and not the lynch mob?
Am I wrong?
Ruth Madoff is that you?
No. It's Clint Eastwood as Jed Cooper in "Hang 'Em High".
:-)
Madoff is one of the most recent reasons I support the death penalty--he has abused everyone in one way or another--so why should taxpayers pay to maintain his existence? When a criminal confesses to the most nefarious deeds that have led many to suicide, some to insanity, and the majority of the retirees who now have no money left, he deserves to die, and only the most ignorant would tolerate arguments to prolong his obnoxious existence. Life is not precious but is a part of evolving process, and those who do not evolve to a higher plane cannot expect compassion or continuance. Only when there is a probability of error should the death penalty not be invoked, but when a crook like Madoff admits culpability he should be dispatched instantly.
Stealing money is not the same as molesting someone or physically abusing someone. Money is fungible. Therefore, the penalty isn't the same for someone who kills a person vs someone who steals from them, in a non violent way. Yes, it is terrible what he did, but he isn't physically violent. Killing a single person is a much worse crime than stealing all of the money in Spain. Furthermore, Madoff's victims gave their money to him. The scope of the crime is irrelevant. People will earn money back, and continue living their lives-poorer for a while. I'm thinking 5 to 10 years, he'll be out.
So what's the moral difference between stealing a billion and stealing a bread? How about the death penalty for a young girls stealing cheap jewelery in the mall?
Where do you draw the line? $10? $100? $100k? $1 billion? How much is a life worth?
"Life is not precious but is a part of evolving process, and those who do not evolve to a higher plane cannot expect compassion or continuance."
Life is not precious? So Madoff's life is not, but that of a potential suicide victim linked to the case is? You need to explain that to me.
"Only when there is a probability of error should the death penalty not be invoked, but when a crook like Madoff admits culpability he should be dispatched instantly."
In other words... everyone is guilty all the time until proven innocent. Sounds like a legal system the Taliban would support.
Madoff should spend the rest of his life in jail-and not a Clubfed, but a prison for serious felons, which is what he is, despite the bespoke suits and lux lifestyle. Arrangements could be made to keep him secure in a medium or max security prison. He's a thief, let him pay the price.
And that's all he is. A thief. And he didn't even steal from the poor. So what's all the excitement about?
Madoff stole from a lot of universities and charities...
I am by no means rich, I am unemployed and, literally, living off of unemployment. So I'm no "wealthy" sympathiser, so to speak.
But, IMO, theft is theft. Theft from a theif does not make that theft right any more than theft from the wealthy makes that theft right.
I think what makes Madoff so infuriating to the wealthy is that he was pretty much their karmic payback for how some of his investors attained their own wealth.
Michael Milken was out in 22 months.
It will be interesting to see if Madoff can beat that.
Judge Chin has set no date for sentencing
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The judge can't set a sentencing date until after Madoff either pleads guilty or is found guilty. It's one of those pesky little details in the Constitution.
Not for a minute do I think that Bernie didn't pass around enough money to all the powers that be in New York to ensure he wouldn't be bothered. So far, he has gotten "some press" and not much difference in his life in the pent-house with the usual servants to cook the top cuisine.
His wife hasn't been arrested, nor his family members...so no trouble so far. Now the judge will "take a long time" surprise surprise.
Martha Stewart was the token rich prisoner/person of the decade, not much evidence since that the rich live under the law of the US.
The teeth have been taken out of our law enforcement and in return they were given battering privileges amongst citizens.
Our regulatory agencies are so awash in payola that no one dares do their job. You couldn't dynamite the SEC to even look at Madoff while the red flags flew in their faces for 10 yrs.
So, do I think Madoff will pay a just price or receive heavy prison time? Nope.
Obama doesn't have enough hours in the day to jack up enforcement and re-regulate, the horse is so far out of the barn, it's a father by now.
There is an odor coming from the whole timing of the Madoff thing, the casualness of it all...almost like it is another red herring the powers that be point to while they pull a dirtier stunt.
Don't tell me his wife and kids weren't in on the scam. I'm not buying that. Is anyone?
wife kids , potential lawyers, AG office, SEC, all of them may be involved. What happened to the now over 63 billion. Where are allot of the billions hidden. Who is he covering up for.
Welocme to NYC the home of multi billion dollar cover ups. The SEC knew about this since 1992. Do you think that we do not have criminals that are Judges, Lawyers, FBI agents, SEC bosses.?
Please google the above and welcome to the real world of NYC. The Madoff ponzi has been covered up for a long time and Madof will plead guilty but will not tell where all the rest of the billion s are. Even if he paid back some billions to investers there is plents of billions that are left and you will soon realize the NYC juctice system is at times as corrupt as the worse third world country.
I know there is another global multi billion dollar fraud that i know of with 100% proof that the AG office and others covered up. I tried to expose and realized that NYC is the place to do multi billion dollar scams because this is the place that they get covered up.
Cool. Now PROVE it.
:-)
Why? Do you have the money? Keeping it safe for the family?
When Bernard Madoff enters a guilty plea as expected, it will be a big win for the government at a time when it really needed one. In today’s Era of Accountability, punishing bad actors is essential to restoring investor confidence and encouraging needed reform. And in the cases of fraud, getting money back for investors needs to be at the top of the government’s agenda. Read more at my blog: http://www.bulletproofblog.com/2009/03/11/from-the-penthouse-to-the-penitentiary/
Bullshit. The FIX is in.
He'll get minimum concurrent sentences on all eleven counts, spend the time at ClubFed working on his suntan and be out on the street again within five years.
Meantime, his co-conspirators and enablers will keep all the money he stole, so they'll take care of him when he gets out.
I've never understood why Michael Milken's wife didn't laugh in his face and divorce him. What could he do? Sue for half her(formerly his, formerly his marks) money? He'd only lose it to restitution.
If a Fed Country Club. Minimum Security facility doesn't have its own golf links, some are located on military bases. Is Maxwell AFB, Ala still the site of a Federal Minimum Security Prison?
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