"Extraordinarily Evil": Judge Brings 150-Year Hammer Down on Madoff

"Extraordinarily Evil": Judge Brings 150-Year Hammer Down on Madoff

In sentencing Bernie Madoff to the maximum 150-year prison term Monday, U.S. District Judge Denny Chin cited the "extraordinarily evil" nature of his crimes.

"Here the message must be sent that...this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll," Judge Chin said.

The ruling provided some solace to Madoff's victims who cheered the sentencing. Several Madoff investors spoke at the hearing and "without exception, attacked Madoff as an unfeeling, horrible, relentless pursuer of their money and souls," says Allan Dodds Frank, a veteran journalist and DailyBeast.com correspondent.

In the accompanying video, Frank recounts the "intensity" of the courtroom, how Madoff "pretty impassively" reacted to the sentence, and how quickly he moved when facing his victims. "If you blinked, you missed it," he says.

A specialist in white-collar crime, Frank said the 150-year sentence almost certainly means Madoff isn't going to any "country club" prison, although that's up the Bureau of Prisons to ultimately decide.

"A sentence of more than 30 years generally means you go to high security if not a super-maximum," Frank says. "150 years? It's hard to say he doesn't go to one of those facilities. They are not a picnic. Even medium-security Federal prison, you're still in with a lot of dangerous people."

The Madoff Scandal - Madoff pleads guilty to fraud, says "deeply sorry"

The Madoff Scandal - Madoff pleads guilty to fraud, says "deeply sorry"

NEW YORK (Reuters) - Bernard Madoff pleaded guilty on Thursday to charges he orchestrated the biggest financial swindle in Wall Street history, cheating investors out of billions of dollars in a fraud whose magnitude shocked the public and drew demands for stricter regulations.
"I cannot adequately express how sorry I am for what I have done," the gray-haired 70-year-old Madoff said as he pleaded guilty to 11 criminal charges.

Here's the AP's list of charges and possibly penalties:

* Count 1: Securities fraud. Maximum penalty: 20 years in prison; fine of the greatest of $5 million or twice the gross gain or loss from the offense; restitution.

* Count 2: Investment adviser fraud. Maximum penalty: Five years in prison, fine and restitution.

* Count 3: Mail fraud. Maximum penalty: 20 years in prison, fine and restitution.

* Count 4: Wire fraud. Maximum penalty: 20 years in prison, fine and restitution.

* Count 5: International money laundering, related to transfer of funds between New York-based brokerage operation and London trading desk. Maximum penalty: 20 years in prison, fine and restitution.

* Count 6: International money laundering. Maximum penalty: 20 years in prison, fine and restitution.

* Count 7: Money laundering. Maximum penalty: 10 years in prison, fine and restitution.

* Count 8: False statements. Maximum penalty: Five years in prison, fine and restitution.

* Count 9: Perjury. Maximum penalty: Five years in prison, fine and restitution.

* Count 10: Making a false filing with the Securities and Exchange Commission. Maximum Penalty: 20 years in prison, fine and restitution.

* Count 11: Theft from an employee benefit plan, for failing to invest pension fund assets on behalf of about 35 labor union pension plans. Maximum penalty: Five years in prison, fine and restitution.

Bernard Madoff arrives at court
(01:03) Rough Cut Video Reuters

MAR 12 - Bernard Madoff arrives at court where he is expected to plead guilty. Alleged victims of his ponzi scheme speak out.
Bernard Madoff, accused of an "unprecedented" $50 billion financial swindle, was charged on Tuesday with 11 criminal counts that could put him in prison for the rest of his life. Wall Street money manager. He is expected to plead guilty to charges that carry a possible sentence of life in prison. Madoff is charged with 11 criminal counts in connection with a $50 billion dollar financial swindle

Update Madoff Mess (January 8th 2009)

Update Madoff Mess (January 8th 2009)

As it turns out Bernie Madoff is also responsible for a couple of hundred million in Labor Union Pension Funds losses (Carpenters Union).
Another development, investigators found 100 signed checks worth $173 million in Bernard Madoff's office desk that he was ready to send out to his closest family and friends at the time of his arrest last month.
He also was accused of sending more than $1 million worth of jewelry to friends and family over the holidays, prompting prosecutors to ask a judge to revoke his bail.

'Casualties of War:' Lousy Returns, Madoff Scandal Spell Doom for Hedge Funds
After the average hedge fund lost 23% last year, according to Reuters, investor confidence was further shaken by the Bernie Madoff scandal, which will only increase the regulatory scrutiny on the industry.

Madoff bail to be decided on Monday January 12th
CNN Money and Fortune wrap up the complete Madoff Mess in a special report.
http://money.cnn.com/news/specials/madoff/

Boston hedge fund shuttering after Madoff bet
Fri Jan 9, 2009 3:26pm EST

BOSTON (Reuters) - Hedge-fund firm GMB Capital Management is shutting down a fund that lost more than $50 million on bad bets that included putting money with accused swindler Bernard Madoff, according to sources familiar with the matter.
The Boston-based GMB Low Volatility Fund LP, which had more than $100 million in assets, began liquidating late last year, the sources said.
GMB Capital is run by Massachusetts Institute of Technology professor Gabriel Bitran and his son Marco.
Low Volatility Fund once wooed investors with the promise that it would rely heavily on Bitran's complicated algorithms to deliver low volatility where prices almost never change. Instead, the father and son team appears to have done exactly the opposite, funneling a big chunk of money to Madoff, a financier accused last month of running a $50 billion Ponzi scheme, the sources said. Read more...

The Madoff Fraud, and the uncertainty

The story about Bernie Madoff's Ponzi Scheme is becoming pretty important and is getting a global impact with unknown effects.
In short, the New York financier and Ex-Nasdaq chairman Bernard L. Madoff was arrested last Thursday (Dec 11th) by the FBI on alleged securities fraud and running an illegal Ponzi Scheme. The total amount of damage could go up to 40 billion U.S. Dollar.
It is already rippling through the Global Financial World from the U.S.A to Europe (Switzerland) to Israël. Madoff was arrested after his own sons gave evidence to the FBI. Not only the wealthy and powerful are hit by this scandal.
Bernie Madoff was heavily involved with investments in the more than 1 Trillio Dollar Hedge Fund Industry.
Generally speaking: this could not have happened at a worser time for the global stock markets, and it makes people shiver at what more bad news is to emerge.
The last full trading week of the year could be one of high volatility.
On this blog we have already collected news and information about the Madoff case.
See these links.

The effect of the 'Madoff Mess' on the Markets


The Ponzi Scheme