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No Justice!! No Confidence!!

Posted by Larry Doyle on March 9, 2009 10:38 AM |

All indications point to a plea deal this week with Bernie Madoff. In my opinion, Bernie Madoff seems to have been treated with kid gloves to this point. House arrest for a purported crime of this magnitude defies logic. One can only assume the government

Bernie Madoff

Bernie Madoff

utilized this approach, even after Bernie shipped jewels and assets overseas, as they were trying to extract as much information as possible. This week’s news will give the public the first hint as to what kind of information the government has extracted.

My father was an assistant district attorney in Suffolk County, MA and has often made the point that white collar crime never received the degree of justice it deserved. The crime that Bernie and team propagated not only directly impacted his investors but also massively impacted the public at large. How is that? Bernie’s Ponzi scheme, perpetrated over such an extended period of time, has caused a crisis of confidence in our markets, our regulatory system, and ultimately our country.

It defies logic that this Ponzi scheme was not executed without enormous cooperation and involvement by a number of individuals both inside and outside the Madoff organization. There is no doubt in my mind that many of those individuals have information, that if revealed, can and will be extremely embarrassing for some high profile people within our regulatory bodies and our government.

If Bernie’s plea deal is perceived as far too generous and closer to the end of the process than the beginning, I for one will not be silent nor should the public at large.

In assessing Bernie Madoff’s actions, I see implicitly thousands of instances of assault, breaking and entering, grand larceny, rape, and premeditated murder (e.g Rene-Thierry Magon de la Villehuchet’s suicide). Call me harsh if you’d like, but that is how I see it.

If the government does not exact justice for this magnitude of criminal behavior with the pressure ratcheting increasingly higher on his den of thieves, then this country will have missed an opportunity to promote the virtues and principles upon which it was built.

No Justice, No Confidence!!


  • Mountainaires

    Spent a good deal of time this morning reading the Vanity Fair piece on Madoff; it’s just stunning. The man is a sociopath; of that, there is no doubt. Some of the insiders paint a picture of a man who had his family cowed in fear, an arrogant, cunning man who knew who to con in order to instill desire in wealthy communities through a herd instinct. The entire family is a study in psychological criminality, greed, and pathological behavior.

    Talking to the Victims of Bernard Madoff

    by Mark Seal

    [link at realclearmarkets]

  • fiscalliberal

    Larry – I wonder if they are plea bargining to determine who else are complicent. Specifically those at SEC, his office and the brokers who passed their investors on. Putting him in jail is the ultimate. The sentence of 5 years, 10 years or 20 years is kind of imaterial as there is a cost in warehousing him.

    A short sentence exposes him to the people he scammed. My neighbor visited south Floria and the jewish community is livid to the point of putting a contract out on him.

    So his relationship to the regulators including FINRA (Mary Schapiro???)is really important so the heat can be put on them. Recall the OTS guy that allowed Indymac to back date their capital. It is the guy’s like that that need to be prosecuted.

    People in his office had to know what was going on. I would think they would be civily culpible

  • Fiscal…They had better have the heat in the room turned to sauna-like temps. Additionally they ahd better be putting the word out that no stone will be left unturned and that EVERYBODY involved will pay. Jaffe, Noel, and so many more were clearly involved in willingly and/or blindly allowing this travesty to occur. Ignorance is an unacceptable excuse for those who benefitted and were in the middle of this fray.

    I would look at Bernie’s brother’s relationship at Finra as a smoking gun.

    I am looking for the scorched earth approach!! Without real penalties and real justice the untold costs will be paid by society for a LONG time. Our justice officials can not allow that to happen.

  • thinkaboutthis

    My father always said— pay your taxes because it is the little guy they go after and send to jail–not the big guy.
    Another friend of mine used to say, ‘You get as much justice in America as you can afford’.
    Personally, these people are so corrupt — that I usually figure when justice does not make sense to me it is because the money holders are involved in some degree and would be exposed to go any further–so deals and favors are cut.

  • Larry Doyle

    …and that is a travesty. I do think the wisdom your father provided is spot on.

  • No one can convince me that his wife shouldn’t be charged with being in it up to her eyebrows…the sons as well. If they were both put in jail rather than languishing in their 7 million dollar penthouse, I think they’d be much more compliant. I can’t remember the commentator but one I heard on radio about a month ago stated that the judge should have recuesed himself because he has conflict of interest due to associations with people close to Madoff. He surmised that is why the prosecutors were not able to have him jailed after he mailed out the millions of dollars of jewelery to his relatives…20 or so pieces of which were luxury watches.

  • Larry Doyle

    I do not disagree with you. My level of confidence right now is low. We will see.

    There are MANY, MANY tentacles to this fraud. If each and every one is not pursued as strongly as possible then we will all pay a very dear price.

    Thanks for your thoughts!!

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