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Bernard Madoff | 03/11/2009 8:20 am

Madoff to Plead Guilty, but Questions Remain

By The Staff at wowOwow.com
© Getty Images

Bernard Madoff’s life will come crashing down this week, when, according to his lawyers, the alleged Ponzi schemer will plead guilty to multiple criminal charges.

Facing 11 charges, including fraud, perjury and money laundering, Madoff will likely spend the rest of his life in jail. In listing the charges, investigators also raised the amount of stolen dollars from $50 billion to $65 billion.

Mr. Madoff may have been in charge of the world’s greatest financial scheme, but investigators are still looking into how far the scam stretched: 

And, in an accusation that extends his crime’s shadow to the edges of the business where his brother and sons worked, prosecutors accused Mr. Madoff of using some of the money he gathered through his Ponzi scheme to support the supposedly legitimate wholesale stock trading operation that made his name on Wall Street.

Specifically, prosecutors said that Mr. Madoff “caused more than $250 million” he collected through his Ponzi scheme from at least 2002 through 2008 “to be directed, through a series of wire transfers, to the operating accounts that funded the operations of these businesses.”

The government also charged that he had money transferred from his firm’s London office “to purchase property and services for the personal use and benefit” of himself, his family members and his associates.

In addition to facing life in prison, prosecutors are asking Madoff to fork over $170 billion, the total amount of money that went through his fingers over the past few decades, but Madoff’s attorneys insist he doesn’t have anywhere close to that much money. We wonder if they’ll go looking for that money wife Ruth Madoff asked to keep. And, more importantly, whether investigators will start looking into her potential involvement.

 

4 Reader Comments (so far…) Sign In or Register to comment

deber B

Quite frankly, he will end up going to a Level One federal prison complete with a 9 hole golf course, workout center and minimum security.  Unfortunately, life in prison will be kind to him.

 

By deber B on 03/11/2009 8:41 am
Patty E
By not testifying, isn’t that the same thing as ‘protecting’ his wife, children, and anyone else that may have knowingly been involved?  Unanswered questions which could easily connect the dots much more so, and at less cost to the rest of us than a long lasting investigation to figure it all out! 
By Patty E on 03/11/2009 9:09 am
Belinda Joy
The prosecution better go after anyone and everyone Madoff was close to in my opinion. I refuse to believe he did all of this on his own. I believe his family knew and close business associates knew. And as long as they were making money they were happy. But now that their lush lifestyles are in possible jeopardy, everyone is trying to distance themselves from Madoff. Let’s hope the prosecution doesn’t fall for it.
By Belinda Joy on 03/11/2009 10:14 am
Michael Robinson
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/

By Michael Robinson on 03/11/2009 4:29 pm