Bernie Madoff Books

Did you watch the Bernie Madoff TV show last night, the first of two episodes of the miniseries on ABC? The second episode will be this evening. I found it interesting; not sure how entirely accurate it is, but much of the acting was well done.

So, do you want to know more of the true story about Bernard Madoff and the collapse of Madoff Securities? Several books have been written about this notorious character. Here are some books worth perusing:

The Wizard of Lies: Bernie Madoff and the Death of Trust by Diana B. Henriques

The Madoff Chronicles (Inside the Secret World of Bernie and Ruth) by Brian Ross

Betrayal: The Life and Lies of Bernie Madoff by Andrew Kirtzman

The End of Normal: A Wife's Anguish, A Widow's New Life by Stephanie Madoff Mack

No One Would Listen: A True Financial Thriller by Harry Markopolos

Madoff's Other Secret: Love, Money, Bernie, and Me by Sheryl Weinstein

Truth and Consequences: Life Inside the Madoff Family by Laurie Sandell

The Club No One Wanted to Join: Madoff Victims in Their Own Words by Alexandra Roth and Erin Arvedlund

Madoff with the Money by Jerry Oppenheimer

Too Good to Be True: The Rise and Fall of Bernie Madoff by Erin Arvedlund

Catastrophe: The Story of Bernard L. Madoff, the Man Who Swindled the World by Gerald Strober and Deborah Strober

65 billion reasons why you cannot trust Wall Street: A first person journey into the underworld of Bernard Madoff by Michael T. De Vita and Emma S. De Vita

$7.2 Billion Recovered for Madoff Victims

PREET BHARARA, the United States Attorney for the Southern District of New York, ORLAN JOHNSON, the Chairman of the Securities Investor Protection Corporation ("SIPC"), IRVING PICARD, the Securities Investor Protection Act ("SIPA") Trustee, JANICE K. FEDARCYK, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation ("FBI"), and CHARLES R. PINE, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service ("IRS"), Criminal Investigation Division, announced today that the estate of JEFFRY M. PICOWER has agreed to forfeit $7,206,157,717 to the United States, representing all the profits that PICOWER withdrew over the years from Bernard L. Madoff Investment Securities LLC ("BLMIS"), the fraudulent investment advisory business owned and operated by BERNARD L. MADOFF. The distribution of funds to victims will be administered by IRVING H. PICARD in his dual capacities as the newly-appointed Department of Justice Special Master to assist the Department of Justice in connection with the victim remission proceedings and as the court-appointed trustee overseeing the liquidation of BLMIS under SIPA. The more than $7.2 billion forfeiture announced today constitutes the largest single forfeiture in U.S. history, and will be used to compensate victims of MADOFF’s fraud.

Mr. BHARARA said: "Today’s truly historic settlement with the estate of Jeffry Picower is a game-changer for Madoff’s victims. By returning every penny of the $7.2 billion her late husband received from BLMIS to help those who have suffered most, Barbara Picower has done the right thing. We will continue to work tirelessly with our partners from SIPC, the SIPA Trustee, the FBI, the IRS, and the U.S. Marshals Service to track down any and all proceeds of Madoff’s Ponzi scheme and return them to victims."

SIPC Chairman ORLAN JOHNSON said: "Since the discovery of the Madoff fraud, the United States Attorney, as well as the Trustee, Mr. Picard, his counsel, represented here by Mr. Sheehan, and SIPC personnel have worked relentlessly on the Madoff case. They have committed constant time, energy, and resources to benefit the victims of that fraud. The settlement announced today is an extraordinary achievement by all concerned. More than $7 billion dollars will be distributed to the victims. We will seek to distribute these proceeds as quickly as possible. This is by far the largest asset settlement in the 40 year history of SIPC. The result we see today shows that SIPC and the Securities Investor Protection Act can meet the challenges they face. Prior to today, SIPC had already advanced over $760 million to the Madoff victims. SIPC has also provided the financial wherewithal to conduct the research, investigation, and legal proceedings that led to this recovery, and, I am sure,
will lead to other recoveries in the future."

SIPA Trustee IRVING PICARD said: "The importance of this settlement cannot be overstated, as it shows significant progress in our efforts to assemble the largest Customer Fund possible. Every penny of this $7.2 billion settlement will be distributed to BLMIS customers with valid claims."

FBI Assistant Director-in-Charge JANICE K. FEDARCYK said: "Among the thousands of investors in the Bernard Madoff scheme were individuals so taken in by his confidence game that they invested the bulk of their net worth with him. The unprecedented settlement announced today means people who two years ago faced the devastating prospect of losing everything now stand to recover a significant portion of their investment."

IRS Special Agent-in-Charge CHARLES R. PINE said: "IRS Criminal Investigation has a unique role in Ponzi scheme related investigations. Our Special Agents come to the table with specialized talent and the ability to pour through transactional records, such as bank and brokerage account statements, and trace illegally earned income to other assets, such as cars, real estate, jewelry, and other highly valued items. IRS Criminal Investigators and its law enforcement partners will continue to work diligently in recovering assets to their rightful owners in illegal financial schemes."

According to the Stipulation and Order of Settlement, and accompanying civil forfeiture Complaint, filed in Manhattan federal court today:

The investment advisory business of BLMIS was operated as a massive Ponzi scheme from at least as early as the 1980s, defrauding investors of billions of dollars. Rather than use client funds to invest in securities, as promised, BLMIS diverted those funds to (a) pay other clients’ redemption requests; (b) fund transactions to disguise BLMIS’s fraud; and (c) enrich Madoff, his family, and his associates. In order to support the lie that BLMIS was operating a legitimate investment advisory business, BLMIS created and disseminated fictitious account statements that, among other things, showed trades that never actually took place. During the course of the fraud, MADOFF’s clients lost approximately $20 billion in funds they invested with BLMIS.

Since at least the late 1970s, JEFFRY M. PICOWER was an investor in BLMIS, holding an account in his own name and controlling accounts held by various individuals and entities. Over the course of his 30-plus year relationship with BLMIS, PICOWER withdrew a net total of $7,206,157,717 in profits from BLMIS. When MADOFF was arrested in December 2008 and his fraud was revealed, it became clear that PICOWER - like all of BLMIS’s investors who withdrew more money than they invested - had profited at the expense of more recent BLMIS investors.

PICOWER died in October 2009. In his will, PICOWER sought to establish a charitable foundation, which was to receive the overwhelming majority of his fortune, and continue his lifelong dedication to philanthropy and to funding medical research. In order to resolve potential civil claims by the Government against PICOWER’s estate, and to enable the creation of the foundation called for in PICOWER’s will, the estate, through PICOWER’s widow BARBARA PICOWER, has agreed to give up the entire net total of any and all funds that PICOWER or any related entity received from BLMIS. The Settlement contains no finding or admission of fault against PICOWER, and his estate has claimed that neither PICOWER nor any of the related entities participating in the settlement had any involvement in, or knowledge of, MADOFF’s fraud.

The United States Attorney’s Office will use funds forfeited in the settlement announced today to compensate victims of MADOFF’s fraud. Last week, in connection with a $625 million settlement involving the Office, the SIPA Trustee, and CARL SHAPIRO and his family, MR. BHARARA announced that the Department of Justice had appointed IRVING H. PICARD as Special Master to oversee the process of remission or mitigation under the forfeiture laws. PICARD is already serving as the court-appointed trustee for BLMIS under SIPA. Under the terms of today’s settlement, and a related settlement submitted to the United States Bankruptcy Court for the Southern District of New York, PICARD will administer $5.0 billion of the funds being returned to Madoff’s victims by the PICOWER estate through the SIPA liquidation proceedings. He also will administer the remaining approximately $2,206,157,717 through the Department of Justice’s remission or mitigation process.

Mr. BHARARA praised the work of SIPC and the SIPA Trustee. He also thanked the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, the Securities and Exchange Commission, and the United States Marshals Service. Mr. BHARARA also thanked the U.S. Department of Labor’s Employee Benefits Security Administration and Office of the Inspector General for their work in this matter. Finally, he thanked the Department of Justice’s Asset Forfeiture and Money Laundering Section for their assistance.

This case was brought in coordination with President BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for
victims of financial crimes.

Assistant United States Attorneys LISA A. BARONI, JULIAN J. MOORE, BARBARA A. WARD, and MATTHEW L. SCHWARTZ are in charge of the case.

Bernie Madoff's Son is Dead

Mark Madoff, the oldest son of swindler Bernard Madoff, has reportedly used a dog leash to hang himself in his Manhattan SoHo apartment. His two year old son was in the next room. His wife and daughter were not home at the time. He was discovered by his father-in-law. Mark Madoff wasn't charged in his father's investment swindle, but was the one who turned his father in to authorities.

His wife changed her last name and the last names of their two children due to the stress of the scandal. The death was reportedly due to suicide.

The Perfect Investment: Bernie Madoff's Underpants

Imagine the bragging rights you would have. This Saturday, an auction will be held at the Sheraton New York Hotel to sell off Bernard Madoff's boxer shorts (along with a bunch of his other personal items, like shampoo bottles).

What would the successful buyer do with these pants? I'm trying to get to the bottom of this. I imagine that the buyer would be the butt of many jokes, and would take a lot of ribbing from a smart ass.

Book Review No One Would Listen [Madoff Scandal]

The book No One Would Listen: A True Financial Thriller by Harry Markopolos is the unbelievable but true riveting story of how one man (along with a small team) tried to expose the Bernie Madoff swindle and scam. He ran into numerous roadblocks from the Securities and Exchange Commission, even though he provided very thorough and extensive reports to the agency. The excuse given by the SEC for ignoring him was that he didn't work for Madoff and Madoff didn't personally provide him with information.

As Markopolos continued to pursue his exposure, he felt that his life was in danger, not only from Madoff but many of the unsavory firms and individuals who were Madoff investors and wouldn't look too kindly on someone who was trying to bring the firm down. Markopolos had people following him, had to increase his home security, and carried a gun with him at all times.

He provides detailed transcriptions of conversations he had with members of the SEC and the press, in his attempt at bringing this scandal to light. Unfortunately, almost no one would listen, until Madoff admitted his guilt himself. If you want a full account of this whistleblowing attempt, read No One Would Listen.

Bernie Madoff Play Cancelled

A play about noted fraudster Bernard Madoff has been canceled, due to a complaint from Elie Wiesel, who's character was supposed to appear in the play. Wiesel threatened legal action if the play continued.