Instead of a sense of relief or satisfaction after learning Judge Chin gave Bernie Madoff the maximum sentence, this wiped-out investor is left feeling apprehensive. What now? Without Bernie to kick around, how will those he harmed get the media attention they need to pressure Congress?
Legislation is pending that would benefit victims who are being subjected to additional injury (see my previous post, Navigating Through Madoff-Land) as well as future potential victims, who imagine themselves invulnerable.
I've spent surprisingly little time since December 11, 2008, thinking about the man who caused my husband, me, and so many others such pain. Madoff is a criminal, done in by the recession, not the SEC, despite Harry Markopolos's persistent efforts. Madoff will now get his comeuppance behind prison walls, which leave no opportunity for photo ops like the inexhaustible clip of his pushing the cameraman.
Speculation about other perpetrators will get some attention if actions are brought. The paparazzi will stalk Ruth and find unflattering pictures to run. But Bernie was the media draw; his impressive skill caused the havoc and despair. Whatever help he got from his wife and sons, from Frank DiPascali and others in the firm, will be investigated and pursued, one hopes. But, really, other than a possible flurry of prurient interest if Ruth goes to jail, none of them offer the same chance for headlines.
Headlines are needed. See my aforementioned blog. My husband and I will not be affected by the most important issues detailed there. Despite having lost all our savings, we'll recoup as much as is possible given the way the deck has been stacked. It's not enough, or close to what is legally defensible, but it's something. Others are not so fortunate. We've yet to learn how the victims of Allen Stanford will be treated. It's the Wild West when it comes to financial fraud. No investor is safe.
Meanwhile, articles like Eric Konigsberg's in the New York Times, "Investors in a Competition For a Piece of the Madoff Pie", refer to "paper losses" that don't qualify for tax deductions. What's not mentioned is that the phantom money was real enough to pay taxes on, in many cases for decades. We did for 21 years. In addition, while some investors, like one quoted, are concerned about competition for what's likely to be a relatively miniscule restitution from the bankruptcy, far more in my position, who stand to "profit" from clawbacks, are on record as being sickened by the idea of monies sent back from unsuspecting investors.
I found it strange that my thoughts today, post-sentencing, have turned to how the residents of New Orleans feel facing another hurricane season. How much have we heard recently about the status of the levees? Are they safe? At first I didn't understand why I was so suddenly preoccupied by their plight and my ignorance about it. Then I saw the reason: if we've forgotten them...
Like victims of countless less publicized crimes, Bernard Madoff investors will be putting their lives back together for years to come. People are cheated, brutalized and murdered every day with far less attention paid to them than we have had. But few crimes have such broad implications. (Unless you consider those committed with the aid of a gun.) The chinks in our financial industry have been exposed. To what effect? Without Bernie as our lightening rod, I fear the storm will come with no corps of savvy engineers having done the needed work.
Three years ago the builder we contracted with emptied the accounts and declared bankruptcy. We lost all of our savings and nearly lost the land we had owned free and clear. Yet, many many people blamed us. They insisted we had not done enough homework (we had). They insisted we must have made some mistake.
Blaming Madoff's victims, blaming us is the same as blaming the rape victim for wearing a short skirt. The other person committed a crime. That is why it is criminal. It's wrong it is fraud. They cheated. They didn't play by the rules.
This divide and conquer tactic is working out very well for those at the very top who continue to defraud you. You can keep your fingers stuck in you ears and sing loudly and hope it doesn't happen to you. You will swear to yourself and others that you are smarter, sharper and craftier and no one can get you.... Whistle louder cause we are all getting cheated and your singing keeps them dancing!
Outside pressure, he setup a hardship program to expedite SIPC claims for the elderly. These people qualified, but he is using money-in, money out scheme, which the IRS doesn't use. If you pay taxes on profits, whether they are real or not, they add to basis. Then in the hardship ruling, he states that his decision is final - no appeals - even a murderer on death row is allowed to appeal. Finally, for those of you who had invested prior to 1996, you must produce your records - deposit and withdrawals, prior to 1996 - does anyone have 13 year old records. So the trustee giveth a hardship program and then takes it away.
His billable hours are minimal for processing claims and less than 600 / 14,000 have been processed in 6 months - but he stands to get up to 3% of the money he recoups - so which path is he taking?
It is time the victims and media rose up against the trustee, because he will be the lead to follow when other ventures fail and other innocent people wait for
who worked hard all his life,saved his money for retirement.My account was insured by SIPC and I want to be paid what is due me.JustJoy7,my portfolio had 35 blue chip stocks plus options which is a diversified portfolio,not all eggs in one basket.I hope this never happens to you.It is hard.If your money isn,t safe with your broker,your money in your bank is not safe even though you have FDIC insurance.
Ease up .
And the Madoff victims are supposed to be paid up to $500,000 by SIPC. This has nothing to do with taxpayers paying to help the victims.SIPC is funded by the Investment Banking firms, not by us taxpayers. Every slip of paper showing trades today, by any firm, show that you are covered by SIPC. Except when it is time to collect. Then they try and change the rules. Losbajos
You almost are comparing your predicament to the survivors of Hurricane Katrena??? That takes balls or ignorance. I'll go with the latter.
I have read quite a few blog posts and articles about this. Most of them try to constitute some sort of federal fiduciary responsibility, and indirectly call for compensation. Despite the fact that investors had to pay taxes on non-existing gains, I still can't see any federal liability here. Those who took their money out early, like attorney Sorkin, or Mr. Picower, actually did pocket gains. The Feds were asleep at the wheel, and could have uncovered the swindle years ago. Shame on them. Yet, trying to constitute a federal liability in the Madoff case is like making the cops responsible for a crash at high speed, because they didn't pull you over.
Why not go after those who really profited? Most of Madoff's victims are still much better off than the average Joe, who recently lost his house in an even bigger derivatives swindle. Instead of whining for a bail-out victims should organize, put some money on the table, hire independent investigators, and go after Picower&Co. and their Billions of assets in tax havens.
1. IRS dollar for dollar refunds of back taxes paid on all phantom income
2. SIPC levying of uncollected back fees from the private sector of broker dealers at an appropriate level to raise the money necessary to cover its obligations
3. An increase in the SIPC refund amount to the 2008 level equivalent of $500K as previously established in 1978 equaling $1.6mm for each victim of fraud applying for refunds as of 2009
4. Expanding SIPC’s definition of investor to include all investors, direct and indirect, violated by fraud.
Thank you for keeping the attention where it needs to be - on all American investors who need protection and solutions.
Good point. Being victimized by fraud (which should have been detected so long ago by regulators) and paying taxes on top of it is more of a valid reason to be bailed out than just bad luck.
Madoff's investors got bilked by Madoff and by those who were responsible for stopping him. I got burned too in the sense that my tax bill won't be forgiven and it'll pay for those executive bailouts. The bail-out/bonus CEOs have to be pretty happy with their take.
Too bad for his investors that he was so thoroughly scapegoated while the bail-outs were happening. I'm not saying he wasn't a terrible scoundrel, just that there were lots more of them who got bailed out and thereby had their offenses arbitrarily forgiven.
He really isn't comparable to Jeffrey Dahmer, nor is the 150 year sentence reasonable. Supposing people were capable of living long enough for him to serve the whole sentence, that would still be really harsh.
You all knew damn well that you were profiting unreasonably.
You willfully turned a blind eye because the going was good.
Please don't dare compare yourself to true crime victims - you were nothing more than a willing participant in this ongoing fraud.
You should be thankful that you are not held accountable in other ways besides losing your ill-gotten gains.
Shame on you.