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how they Madoff with billions…

Imagine for a moment that you were able to scam investors for years and eventually steal 50 billion dollars from people who really trusted you. As we have come to realize, it did happen.

Bernie Madoff’s Ponzi scheme finally came to light. So, is the man in jail? No. He’s under “house arrest” in his fancy Manhattan digs. Imagine if you or I stole that much money? Would we even be alive? Would we be living outside of a prison? I doubt it.

After Madoff was arrested it was learned that he had mailed expensive jewelry to his relatives in defiance of a court order. Did the judge lock Bernie up? Of course not.

Now it has been learned that Mrs. Madoff was also busy siphoning off a little more Mad-off money. Here’s the story from Reuters:

Madoff’s wife pulled out $15 million before his arrest

Wed Feb 11, 2009 6:11pm GMT

By Svea Herbst-Bayliss and Martha Graybow

BOSTON/NEW YORK (Reuters) - “The wife of Bernard Madoff withdrew more than $15 million from an account linked to the accused swindler in the days before his arrest, Massachusetts authorities said on Wednesday, adding a new layer of intrigue into the probe of the purported $50 billion scam.

Ruth Madoff pulled $10 million on December 10, the day before her husband was arrested and charged with running a global investment fraud, and $5.5 million on November 25, according to Massachusetts Secretary of State William Galvin.

Galvin did not file any charges against Ruth Madoff. The disclosure of her withdrawals came in reports produced by Cohmad Securities, a firm co-owned by Bernard Madoff that had funneled millions of dollars from its clients to Madoff.

Bernard Madoff, 70, is the only person charged so far in the alleged scam that has hit banks, charities, wealthy investors and celebrities worldwide.

Madoff told authorities he acted alone in confessing to the fraud, prosecutors have said.

Legal experts, however, have said they are skeptical that such a massive fraud could have been pulled off by one person.

Federal prosecutors, the U.S. Securities and Exchange Commission, various state authorities and a court-appointed trustee liquidating the Madoff firm are all investigating.

Lawyers for the Madoffs could not immediately be reached for comment on Wednesday.

Galvin said that for years, Cohmad Securities received monthly payments that totaled $67 million — the bulk of its total income — for “professional services”, “brokerage services” and “fees for account supervision” from Madoff.

Galvin’s office is trying to suspend Cohmad’s state license so that it can no longer act as a broker in Massachusetts.

MORE TIME

Bernard Madoff is under house arrest at his luxury Manhattan penthouse.

The U.S. Attorney’s Office in Manhattan bought more time to probe the complex Madoff case on Wednesday, with the government and defense lawyers agreeing to extend the deadline by 30 days to bring an indictment or secure a guilty plea. A preliminary hearing is scheduled for March 13.

An indictment is a necessary step if Madoff is ever to stand trial on criminal fraud charges.

The delay means that the government can continue to build its case or discuss ways with Madoff’s lawyers to resolve the case. A similar extension in the case was granted in January.

Ruth Madoff, the co-author of a kosher cookbook, has drawn scrutiny from federal prosecutors who had tried unsuccessfully to have her husband’s bail revoked and jail him immediately. They said that the couple sent more than $1 million worth of valuables to relatives and friends in violation of a court order.

Madoff, a former chairman of the Nasdaq stock market and once a respected money manager, is accused of running a long-standing Ponzi scheme in which money from new investors was used to pay withdrawals and investment gains of earlier investors.

Other people and firms under scrutiny include hedge funds and other investment managers who placed client money with Madoff over the years.

New York Attorney General Andrew Cuomo told reporters on Wednesday that well-known hedge fund founder Ezra Merkin is cooperating with a probe by his office.

Merkin’s lawyer, Andrew Levander, has previously described his client as one of the victims of Madoff’s fraud.”

(Additional reporting by Grant McCool; Editing by Brian Moss)

Can you believe these swindlers? Of course to the Madoffs 15 million is chump change, mere petty cash. What I cannot believe is that this creep is still living his life of luxury outside of a maximum security prison. Lock him up. Throw the key in a swamp. He’s a swamp creature…

I can’t wait to read the book…

Vick Mickunas

Permalink | Comments (3) | Post your comment | Categories: booms and busts

Comments

By downsized

February 12, 2009 4:16 PM | Link to this

Madoff was simply exhibiting the rugged, individualistic, pioneer, entrepreneurial spirit that helped make this country what it is today. Just because he was more successful at multi-level marketing than his detractors is no reason to scorn him. It’s buyer beware, if it sounds too good to be true, it probably is. Everyone knows that. If his investors thought he was getting 25%+ returns legally, so be it. Besides, our judicial system deems him innocent until proven guilty. Remember, it’s the wealthy like Madoff who pay most of the taxes, supporting big government and welfare programs.

By downsized

February 12, 2009 9:32 AM | Link to this

Seize every asset but, do you believe taxpayer money should support him and protect him from those he destroyed? He is one more case for the argument supporting the death penalty. The first “shovel ready” project for the stimulus package should be building gallows and guillotines on the Washington Mall. Let’s find out how long the bankers continue to refuse to disclose where the first $350 billion went after we put them in bunkhouses next to the construction site.

By TRS

February 11, 2009 11:38 PM | Link to this

So Vic - so don’t believe there are circumstances for water boarding?
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