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Madoff Offers to Names Names

Posted by Larry Doyle on March 29, 2013 5:50 AM |

Has Uncle Sam closed the books on the Madoff investigation?

One would have to think so because there have been so few meaningful developments to emanate from the government’s ‘supposed’ pursuit of truth and justice in this case as to lead one to believe that the case is now closed.

Aside from a few ‘ne’er do well nitwits’ involved in Madoff’s operation, few if any meaningful names outside of the Madoff lair have been implicated in this massive scam.

Time may erode the public outrage over our government’s massive failure to protect and perform in this case but does that mean that justice neglected should remain justice denied?

One would think so given the fact that co-conspirators in this case have not surfaced or been brought to justice.

Begs the question as to just how much Uncle Sam really wants to share with the public as to what really happened within the Madoff operation.

The last person in this scandal who deserves a bully pulpit and any sort of meaningful public credibility is the scumbag Bernie Madoff himself.  That said, “information is everything” and with little of note in regard to meaningful information being shared with the public, one wonders whether investigators truly care to learn — or share — all of what transpired within the Madoff scam over the years.

For these very reasons, I find it truly regrettable that independent investigators of unquestioned credibility and integrity have not handled this case. If they did, who knows where the trail may have led them and who within the halls of power in Washington and executive suites on Wall Street might have been implicated. I think the chances of these developments ever occurring are slim and none and slim never had much of a chance to begin with.

All this said, the villain himself recently shared with Fox News that he is willing to name names of those within Wall Street banks whom he maintains knew what he was up to.

 . . . in an e-mail to FOX Business reporter Adam Shapiro received Tuesday, Madoff said he plans to offer specific information to Congressional committees investigating both his crimes and possible complicity on the part of Madoff’s banking partners.

Madoff said he has offered Irving Picard, the court-appointed bankruptcy trustee who has pored over Madoff’s finances since the scheme collapsed in late 2008, information that would prove his assertion, but the trustee has so far ignored Madoff’s efforts.

Madoff wrote to Shapiro: “From my first interview to the media I have said that ‘the banks must have known’, and were complicit and contributing to my crime. Although I have offered the bankruptcy TRUSTEE (sic) the information that I possessed that would demonstrate in detail their complicit behavior of banks like JP Morgan, Bank of N.Y., HSBC, Citicorp and others. The Trustee seems unwilling to act on my offer. Therefor (sic) I am offering this information to the appropriate governmental committees in the hope that this information will prove helpful in future regulation of the appropriate institutions.”

Amanda Remus, a spokesman for the trustee’s office, said in an e-mail: “The SIPA Trustee’s position is that, as the perpetrator of the largest Ponzi scheme in history, Madoff’s credibility is highly suspect and has no substantive value.”

Remus is right. Madoff has no credibility BUT then again neither does Whitey Bulger or any other hardened criminal. Does that mean investigators do not collect information from these scumbags, pursue the leads, and see where it takes them? Of course not. Is this really being done? Great question.

. . .  the U.S. Treasury Department disclosed in January that it’s conducting an investigation into J.P. Morgan’s dealings with Madoff. The department hasn’t described the scope of the investigation.

Really? Do you think we will learn anything of note? Or might this end with another token fine for lax oversight of money transfers and little else?

The issue here is whether investigators truly and fully care to pursue Madoff’s leads — or any others — that lead into the bastions of power and money (can you say, JP Morgan, HSBC, BONY Mellon, Citigroup?) that control our nation. 

Do you agree or disagree?

Larry Doyle

Isn’t  it time or overtime to subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • fred


    “You don’t know what people are really wearing until the tide goes out”. The tide being Fed manipulated interest rates and the value of the world’s reserve currency, the $US.

    Sure Madoff ran a ponzi scheme designed to line his own pockets and both he and his enablers in Washington and on Wall Street should occupy the entire “Madoff cell-block” in prison, but who is the moon manipulating the tides? What of the culpability of the Federal Reserve in it’s attempt to micro-manage the U.S. and global economy via below market interest rates and the depreciation of the $US designed to prop up asset values.

    When left to their own device, markets have a way of cleansing themselves, a vibrant price discovery process reduces the ultimate pain of loss; people suffer less irreparable harm.

    Wall St has always been nothing more than a “shady” master promoter trying to entice buyers and move product, this hasn’t changed since day #1. Why is the public so gullible as to believe that by taking a “chance” at the carnival they will win anything of lasting value? Wasn’t the true magic of Glass-Steagall the seperation of fact from fiction, the sepatation of “shady” from “trustworthy”.

    It’s time for our government to stop trying to manipulate markets and to start trying to regulate them; to provide leadship through example.

    The post WW2 “halo effect” experienced by the U.S. is long over, we now live in a zero sum world where lifestle gains will acrue to countries capable of growing GDP faster than CPI, countries willing to raise rates and reduce Debt/GDP.

    If the U.S. is to maintain it’s sovereignity and the privilege granted to the “printer” of the world’s reserve currency, the Fed has to provide liquidity in the context of stable prices in oil and gold rather than targeted “core” CPI and employment levels.

    What if the real problem isn’t fiscal policy but monetary policy, the real crisis the stability in the global oil markets rather than the U.S. housing market. What if the negative spread between WTIC and Light Sweet Crude represents both the global failure of Fed policy and the future trajectory of the U.S. economy?

    Ever since the elimination of the gold standard, the Fed has been very effective in both deflecting blame and then taking credit for fixing the problem. Maybe the real problem resides on Constitution Ave rather than Wall St.

    “Thank you sir may I have another”.

  • Russ


    Once again, you have hit the nail on the head. The Trustee, who works for SIPC (Wall Street), wants to protect the government and the government them.

    That way, the game can continue.

    The victims are simply collateral damage. Unfortunately, I happen to be one of them.

  • Randee

    My question: What is the toll of “lost opportunity” from those who have missed our glorious stock market run up of the past four years due to irrational fear induced by Ponzi schemes and gloom and doom websites like Sense on Cents?

  • fred


    That’s any easy answer. About the same toll of “lost opportunity” from those who missed our glorious stock market run up after the bust and “Ws” election.

    If, I might add some incite, the key to successful investing would seem to be an ability to remain “apolitical” and economically objective (don’t fight the Fed) when the incumbent party loses the presidential election after a 2nd term.

    Randee, please stop gloating about your “self proclaimed” investment prowess, it doesn’t become you. Maybe it’s time to “manup”, 1)take the Obama bumper sticker off (the election was almost 5 mo ago) your Prius (why aren’t you driving a union labeled Volt with your stock market riches?) and 2) stop posting “nonsense” on Sense on Cents (try adding value with diverse perspective).

    • Randee

      Fred, allow me to correct you.

      1). Nowhere in my post do I “gloat” about anything.

      2). I have never been behind the wheel of a Prius. I drive a Porsche and a Subaru.

      3). Re: “nonsense”: I would posit that your initial post on this Madoff thread is the biggest piece of nonsense I have ever read. Even if it made an ounce of sense (it does not) it’s almost novella length. Did no one teach you the importance of brevity in writing? I guarantee you not one person read all the way through, except maybe your mother.

      With all due respect, Fred, I think you’re a far right wing loon.

  • fred


    Is that all you got? You’re a big disappointment, but I’m sure you hear that from your wife all the time, he deserves better!

    With all due respect Randee, you do have one talent, the more you say the less it means.

    Catcha later.

    • Randee


      I knew I could count on you to take the bait.

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