”Some people were crying very hard…”

Vannity Fair has just blown the lid off the secrets of Bernie Madoffs ponzi operation!

Click here for the full story

http://www.vanityfair.com/online/politics/2009/05/bernie-madoffs-secretary-spills-his-secrets.html#share-1000000000135327

Bernie Madoff was a sexist, egomaniacal, short-tempered control freak–yet everybody loved him.

After spending two months helping the F.B.I.

The article, entitled “Hello, Madoff!,” is accompanied by more than a dozen intimate photos of Madoff and his family from as far back as the 1970s.

Squillari recalls an unusually prescient conversation she had with Madoff years earlier, after a client’s secretary had been arrested for embezzlement.

The way Madoff handled stress was “by saying something nasty: You look terrible. You’re gaining weight. You’re stupid. I never took anything he said to me personally, because I knew it wasn’t about me, it was about him.”

Madoff’s behavior changed drastically in the weeks before his arrest.

Bernie was irresistible to women” and “had a roving eye.” Squillari once caught him perusing the escort ads in the back of a magazine, and he frequently visited massage parlors.

Madoff was flirtatious and had a habit of making sexually suggestive remarks: “‘Oh, you know you’re crazy about me,’ he would say to me. Sometimes when he came out of his bathroom, which was diagonal to my desk, he would still be zipping up his pants. If he saw me shaking my head disapprovingly, he would say, ‘Oh, you know it excites you.’ If a pretty young woman came in, he’d say, ‘Do you remember when you used to look like that?’ I’d tell him, ‘Knock it off, Bernie,’ and he’d go, ‘Ah, you still look good.’ Then he’d try to pat me on the ass.”

Ruth and Bernie Madoff on the yacht of real-estate tycoon Norman Levy, circa 2000.

Bernie’s wife, Ruth, “wanted to be perfect for him. She would never allow herself to gain weight or have a hair out of place, and she always kept an eagle eye on him, especially when he was around young, attractive women.” However, “if Bernie said something to Ruth that annoyed her, she’d say, ‘Go fuck yourself,’ or ‘I don’t give a shit.’ That’s the way they talked to each other.”

The staff on 17 “were mostly low-level, clerical women, many of them working mothers, who probably made no more than $40,000 a year. They were young and na�ve, with no background in finance, so they weren’t able to connect the dots.” Squillari was friendly with two of those women and says, “Whenever I went downstairs, they were always busy doing paperwork while [their boss] Annette [Bongiorno] watched them like a hawk. Once, I remember, Annette had the phones removed from her employees’ desks after she became concerned that they were making personal calls. She treated them like children.”

In the days after her husband’s arrest, Ruth Madoff called Squillari multiple times and encouraged the secretary to provide her with certain information without notifying the bankruptcy trustees, which Squillari said she couldn’t do.

Looking back on things, Squillari believes Madoff meticulously planned out the particulars of his arrest.

Vanity Fair’s June issue, which contains the full text of “Hello, Madoff,” is on newsstands in New York and Los Angeles today, and nationwide on May 12.

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H. David Kotz, Inspector General of the SEC, issued his report, Investigation of Failure of the SEC To Uncover Bernard Madoff’s Ponzi Scheme, on August 31, 2009 and testified before the Senate’s Committee on Banking, Housing and Urban Affairs a few weeks later. Mr. Kotz stated that the result of his investigation revealed, “…the SEC received six substantive complaints that raised significant red flags concerning Madoff’s investment adviser operations and should have led to questions about whether Madoff was actually engaged in trading. We also found that the SEC was aware of two articles regarding Madoff’s investment operations that appeared in reputable publications in 2001 and questioned Madoff’s unusually consistent investment returns.”

He further stated, “Our report concluded that notwithstanding these six complaints and two articles, the SEC never conducted a competent and through examination or investigation of Madoff for operating a Ponzi scheme and that had such a proper examination or investigation been conducted, the SEC would have been able to uncover the fraud.”

So how can the IG investigate the SEC’s investigation of Madoff in less then one year, when the SEC’s investigations began with red flags in 1992? The IG points out several reasons for the SEC’s failed investigations in his report, but I want to focus on what the IG did differently in his investigation. He began his investigation immediately, hired outside expert consultants, controlled documentary and interview evidence, and reported his findings promptly. He additionally has stated, “Because our investigation identified systematic breakdowns in the manner in which the SEC conducted its examinations and investigations, we plan to issue two separate audit reports providing the SEC with specific and concrete recommendations to improve the operations of both OCIE and Enforcement.”

The IG took a proactive approach in engaging outside experts who were trained in securities, fraud, investigative techniques, and forensic accounting. The IG should be commended for getting the expertise it needed for such an investigation. Neither the SEC nor the IG has the expertise to investigate complex securities frauds as evidenced by the total failure of the SEC’s investigations of Madoff and the IG’s approach in engaging outside experts. The SEC and other regulatory arms of the government should take note of the IG’s wise use of outside experts.

The SEC in its 2008 report stated, “Effective deterrence of securities fraud requires that the cases filed by the SEC have adequate reach across all core enforcement programs areas.” The SEC’s litigation releases from January 2006 to March 2009 indicate 68 Ponzi schemes cases out of 677 total cases litigated by the SEC or about 10%. My research reveals hundreds of Ponzi schemes have been documented in the past few years, and I would estimate for each one documented, there are ten more. Although the SEC is stepping up its enforcement of Ponzi schemes due the public pressure from its failed Madoff investigations, it does not have the tools or the budget to stop these sophisticated frauds.

The SEC has not been the “effective deterrent” of Ponzi schemes it professes to be in its report. Most of its investigations are started after a complaint is made, when the Ponzi scheme is collapsing or has collapsed. My research shows that there is little recovery when a Ponzi scheme has collapsed. A recovery of above 10% is good and in most collapsed Ponzi schemes, no recovery is ever made for the investors. The SEC needs to become more proactive in its enforcement of Ponzi schemes and stop them before they go too far. Many experts around the US have identified potential Ponzi schemes while they are occurring, like several of the complaints filed with the SEC in the Madoff case. The SEC’s staff cannot enforce Ponzi schemes from their desks in Washington, DC; they need to get onto the battlefield to engage the enemy.

The SEC should take a cue from Mr. Kotz who used outside experts, took immediate steps, and didn’t spend millions of investigative dollars to come up with the wrong conclusion. Commissioner Schapiro stated after the IG issued its report, “In the coming weeks we will continue to closely review the full report and learn every lesson we can to help build upon the many reforms we have already put into place since January.” I encourage the Commissioner to listen closely to her IG, implement the IG’s suggestions and become more proactive in combating Ponzi schemes. Nothing less will be acceptable to the investing public.

Mr. Cuthill’s practice is limited to court-appointed positions in large fraud cases. He was the court-appointed trustee in what the media called Florida’s largest Ponzi scheme. His work has produced the return of tens of millions of dollars of investors’ funds. For more information about him go to http://trusteeandexaminerCuthill.com/

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Madoff, Enron, Worldcomm, Andersen Accounting, and all the rest. Financial fraud was running rampant during the Clinton years.

Who was in charge of the SEC at that time? Why did he do such a lousy job?

And please, spare me your clever remarks about “Boosh” and “Kenny Boy.” We all know Bush was just as bad as Clinton on this account. There's no need to remind us.

I just want to know how all this got started.

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Criminal law is an interesting philosophical study if you step away from all the laws, rules, and regulations that are written within all the pages of all the law books, codes, and regs. You see there is a limit to criminal justice, and a limit to criminal law. For instance, if someone kills 30 people in an explosion or terrorist act, you can sentence them to death, but then in the end, is their punishment really fair to all the damage they have caused? The punishment didn’t fit the crime, they got off too easy.

And this also goes for corporate crime, for instance in the case of Bernie Madoff, the infamous world record holder for a Ponzi scheme. Apparently, he stole over $50 billion, and claimed he had invested this money, which was worth 150 billion by now. Many people lost their entire life savings and it ruined so many lives. His punishment will probably be life in prison, but he has already led such a wonderful life at the top of the food chain for so many years and he is an old man now.

Is this fair for all concerned? Absolutely not. Even if we were to sentence him to death that really wouldn’t justify a fair punishment for all that hurt he has caused so many people. Not to mention all the nonprofit groups that had to shut down and all the good they can no longer do.

There are ciminal law limits and life in prison or even capital punishment sometimes does not suffice. Perhaps we need to consider this, and figure out a more just way to punish people who do so much damage to our society and civilization.

Lance Winslow – Lance Winslow’s Bio. Lance Winslow is also Founder of the Car Wash Guys, a cool little Franchise Company; http://www.carwashguys.com/history/founder.html/.

Technorati Tags: Bernie Madoff, madoff

The grandmaster of all Ponzi schemes was sentenced to 150 years and the court did not go easy on him; no leniency was given. The judge stated that these were such “evil acts” that no mercy could be given by the court. The newspapers and news media said that; “This sentence sent a message to Wall Street to shaping up.”

Almost as if Bernie Madoff was being made in example of, an example of what? This is the largest Ponzi scheme ever in the history of the world. This is not what Wall Street does for a living, without Wall Street we would never have had the economic powerhouse nation that we have today.

Bernie Madoff’s lawyers recommended only a 12-year sentence because that was his life expectancy, the judge said “no” and gave him 150 years. Many would say this is justice, but no amount of time can give people back the lives that were stolen from them along with all their money, so it’s hard to say if justice was actually served or if this really sends a message to anybody.

Further, this is a very rare case, and one can only doubt if it will change anything on Wall Street. It will not change the compensation or bonuses that have aggravated so many citizens. It will not change the next financial bubble from bursting, or keep us from financial gurus inflating it.

Other than the fact that Bernie Madoff will never be able to get out of prison, and will die there, and leave only upon death in a wooden box, it is hard to say if this sent any signal to the financial world; what will and will not be tolerated. Everyone on Wall Street and in New York already knows that Ponzi schemes are illegal, they have been forever and always will be.

Although this harsh sentence that made headlines, I doubt very much if it proved anything or made any of the victims anymore satisfied. And I do not think the judge deserves much credit for the sentence, or kudos from the media. Please consider all of us.

Lance Winslow – Lance Winslow’s Bio. Lance Winslow is also Founder of the Car Wash Guys, a cool little Franchise Company; http://www.carwashguys.com/history/founder.html/.

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If you are having trouble locating a destination on Yahoo! News, try visiting the Yahoo! News home page or you may find what you’re looking for if you try searching below.

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madoff: “happy hanukkah elie wiesel foundation, i stole your money”

we are writing to inform you that the elie wiesel foundation for humanity had $15.2 million under management with bernard madoff investment securities. this represented substantially all of the foundations assets…” …

More Proof Obama Hates Jews! – Plasma Pool

George Costanza has made a fortune from an iPhone application called the “iToilet” — which helps wayward incontinents find relief — but loses everything to Bernie Madoff. Apart from its funny Seinfeld shenanigans, the season finale … The right-wing smoke-and-mirrors furor over President Obama’s decision to halve the guest list for the [eighth] annual White House Hanukkah party from 800 to 400 takes no account, as Johnathan D. Sarna says in the Forward, of the slow, …

Just Another Blog (From L. A.)™: 11 December: Hanukkah Begins (Put …

In 2008, Former NASDAQ chairman Bernard Madoff was arrested, accused of running a multibillion-dollar Ponzi scheme that destroyed thousands of people’s life savings and wrecked charities. (Madoff is serving a 150-year federal prison …

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Bernie Live!: From Butt Hole NC

From Bernie L. Madoff

To: My Supporters

First, let me say, “Chag Sameach” to all of my supporters that celebrate Chanukah.

This is one of my favorite holidays, because every night, there’s another gift for the kinder!

I remember starting back in 2001 (or maybe 2002, who can remember?), every night for a week, I gave Ruthie an offshore bank account from a different country. And every year after, my Chanukah gift to Ruthie would be a $10 million deposit for each of the 7 different offshore accounts.

The boys? Well, I put money into trust for them. Different accounts. Different countries. Simply because I couldn’t trust them.

Those were the days!

Anyway, since I’m actually blogging live, direct from the library here at Butt Hole NC, this is my opportunity to provide you with my Chanukah gift list for the year.

To My Boys:

OK, so maybe you didn’t get a new offshore bank account every year, and maybe you’re holding a grudge. I understand. But, I’m your father, and I’m learning to be very understanding in here.

Anyway, for you, I’m giving you my next great business plan. It’s a hedge fund with an investment strategy that’ll be even easier to sell than the split-strike strategy. You’re going to tap into a $250 billion OTC trading market, and that’s just the US Market. Then you’re going to create an electronic exchange for this, 3x bigger than NASDAQ , and you boys will make a fortune! Free and Clear. Easy Peasy.

Here it is:

Every year, $200 billion is spent on lobbying. The industries that spend the most, perform better than those that don’t. You can check out the index prices, but trust me, it’s a fact. The companies that spend the most on lobbying, perform the best within their sector. This is the next split strike strategy. 10x bigger; double the returns than my last idea delivered. You can create a family of ETF’s, set up a separate prop trading desk, and then set up an electronic exchange for anybody that wants to trade.

You can use a copy of the same software that Picard gave away for peanuts to that “Surge Trading” group, but you’ll need to bring in one of Sonja’s programmers to write code that takes into account the real time payments correlating to expenses incurred lobbyists forevery senator, every congressman and every state representative. Its brilliant. All of these people are required to file disclosure forms, and all of those forms are a matter of public record. Shana will whisper to Eric and Eric will whisper to his friends, and then the SEC will make it a requirement that everyone submit their disclosures in real time to a central database that Andy will hire someone to create, and boom, you’ll know what companies to buy in the trading account.

Then you’ll take it one step further and create an electronic market that’ll dwarf NASDAQ. You’ll call it KICKBAQ. Fucking brilliant.

I’m giving you a three paragraph PPM. Three paragraphs..that’s all. Its down below, in small print. Any investor that doesn’t understand those three paragraphs, and needs to ask questions—they don’t get in. Very simple. That’s my gift to you boys. Its worth hundreds of Chanukah nights.

Now, even though Chanukah gifts are traditionally given to the children, I’ve got a special gift for all of my supporters and fans. Its a box of my favorite alcohol-free hand sanitizer.

That’s right, its my gift to you fef . No strings attached.

And trust me, there’s lots of swine where I’m sitting right now, and this stuff has helped to keep me healthy and popular.. That’s probably why they call it “Soapopular”. If you want a free box, just click here.

Below is the secret sauce for the PPM boys. Don’t ask any questions, raising the money will be simple. Start with Chuck Schumer’s people.

Bernie L. Madoff,

a/k/a Midas Madoff

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Corporate lobbying activities are designed to influence legislators and thus to further company goals by encouraging favorable policies and/or outcomes. Using data that became available after the passage of the Lobbying Disclosure Act of 1995, this study evaluates the effectiveness of corporate lobbying from a financial perspective. Evidence from panel regressions suggests that lobbying intensity is positively related to the average firm’s accounting-based financial performance. These results continue to hold when we explicitly model the decision to lobby in a Heckman sample selection framework. We also present market performance evidence using a portfolio approach, which compares excess returns of firms that lobby with control portfolios of firms based on size and book-to-market, and of non-lobbying firms. We find that portfolios of firms with the highest lobbying intensities significantly outperform their benchmarks in the three years following portfolio formation.

Hui Chen University of Colorado at Boulder David C. Parsley Vanderbilt University – Owen Graduate School of Management Ya-wen Yang fef Wake Forest University

Read more…

New York – Charities Still Stung by Madoff Scandal Year Later …

“Washington – At the first Hanukkah party in the Obama White House, a Jewish student choir will sing in sweet harmony, the two young children of a soldier deployed in…” Washington – Fuss Over White House Chanukkah Party “Newark, …

Technorati Tags: bernard madoff, Bernie Madoff, bernie madoff spending Hanukkah, christmas madoff, Hanukkah, madoff Hanukkah, prison

Madoff’s victims, one year later

One year after losing their life savings to Madoff, Allan and Ruth Goldstein live in a house they bought with … Read More…

A Year Later, Only Bernie Madoff and Frank DiPascali Are Behind Bars

It was one year ago today in a New York office building that Bernie Madoff brought his two sons into his office … Read More…

Uma dumps Swiss fiance

Rumours out of the New York Post suggest Bernie Madoff is responsible for Thurman’s cold feet. The Post says Busson, a hedge fund manager, “lost a bundle” … Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

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Harry Markopolos said he tried to warn SEC officials long before the Bernard Madoff Ponzi made international headlines.

Harry Markopolos Spills The Beans

Technorati Tags: Bernie Madoff, Harry Markopolos, sec, securitites

He told his sons about the fraud and they turned informed the SEC. Federal agents arrested him the following day.

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