Bernard (“Bernie”) Madoff (not pronounced Made-off, as in made off with everyone’s money) put forth the largest investment scam in history. Basically, Bernie operated a “ponzi” scheme in which he collected lots of money promising unrealistic returns and paid the investors out of their own or newly-invested funds.
In other words:
I get Paul to invest money into my stock fund. But instead of investing his money I spend the money on a trip to Hawaii. Paul wants a return on his money, but there is no return because I spent his principal. However;
Patricia also wants to invest in my fund. I take her investment and use it to cover Paul’s interest payment and spend most of Patricia’s principal on a trip to L.A.;
David then hears about Paul’s return and wants to invest double that amount into my fund. I use his money to cover Paul’s and Patricia’s investment - and so on and so forth . . .
For Bernie, this worked for about nine years and 50 billion dollars. That’s half of what Dr. Evil wanted to not destroy the world in the Austin Powers’ movies. And Bernie might have gotten away with it if his sons hadn’t turned him in.
Yes, Bernie’s sons came over to visit dad in his gagillion dollar New York penthouse. They basically asked, “Dad, how are you going to pay all those investors back when there doesn’t seem to be enough money for everyone?” And Bernie answered something like, “Oh, ‘ahem’. I’m glad you asked that question. You see, sons, sometimes life isn’t fair . . . Not all of the turtles make it to the breakers . . . and . . . Alright, you got me. It’s a big con game and the investors are basically getting screwed.”
After dad’s confession, his sons, with the greatest admiration and respect for their father, busted Bernie like a two-dollar piata. Yes, those little scamps went to the feds and snitched old Bernie off. (Boy would I like to have a copy of the federal wiretap tape on Bernie’s house at Thanksgiving – or, maybe on Father’s Day.)
And now, all of Bernie’s and his wife’s assets are being confiscated. I wonder if the sons’ assets will be taken also or if they’ll get a free pass. Somehow I imagine that those boys bought more snow with Bernie’s money than Bing Crosby in “White Christmas”. Maybe they’ll at least let them keep thirty pieces of silver apiece for their troubles.
Now don’t get me wrong, I in no way condone what Bernie did and I think that he should be punished to the fullest extent of the law. But it’s hard to work up a lot of sympathy for some of the victims. After all, the only way to suck people into a scheme like that is to play on their greed. They wanted the big return that Bernie promised and they jumped at his promises like a hungry raccoon going for a bucket from the Colonel.
But Bernie will be punished. This guy will last in prison about as long as the dessert tray at Oprah’s house. And Bernie’s family will have to use form 1040FU to file their taxes this year.
And that is my legal opinion.
In other words:
I get Paul to invest money into my stock fund. But instead of investing his money I spend the money on a trip to Hawaii. Paul wants a return on his money, but there is no return because I spent his principal. However;
Patricia also wants to invest in my fund. I take her investment and use it to cover Paul’s interest payment and spend most of Patricia’s principal on a trip to L.A.;
David then hears about Paul’s return and wants to invest double that amount into my fund. I use his money to cover Paul’s and Patricia’s investment - and so on and so forth . . .
For Bernie, this worked for about nine years and 50 billion dollars. That’s half of what Dr. Evil wanted to not destroy the world in the Austin Powers’ movies. And Bernie might have gotten away with it if his sons hadn’t turned him in.
Yes, Bernie’s sons came over to visit dad in his gagillion dollar New York penthouse. They basically asked, “Dad, how are you going to pay all those investors back when there doesn’t seem to be enough money for everyone?” And Bernie answered something like, “Oh, ‘ahem’. I’m glad you asked that question. You see, sons, sometimes life isn’t fair . . . Not all of the turtles make it to the breakers . . . and . . . Alright, you got me. It’s a big con game and the investors are basically getting screwed.”
After dad’s confession, his sons, with the greatest admiration and respect for their father, busted Bernie like a two-dollar piata. Yes, those little scamps went to the feds and snitched old Bernie off. (Boy would I like to have a copy of the federal wiretap tape on Bernie’s house at Thanksgiving – or, maybe on Father’s Day.)
And now, all of Bernie’s and his wife’s assets are being confiscated. I wonder if the sons’ assets will be taken also or if they’ll get a free pass. Somehow I imagine that those boys bought more snow with Bernie’s money than Bing Crosby in “White Christmas”. Maybe they’ll at least let them keep thirty pieces of silver apiece for their troubles.
Now don’t get me wrong, I in no way condone what Bernie did and I think that he should be punished to the fullest extent of the law. But it’s hard to work up a lot of sympathy for some of the victims. After all, the only way to suck people into a scheme like that is to play on their greed. They wanted the big return that Bernie promised and they jumped at his promises like a hungry raccoon going for a bucket from the Colonel.
But Bernie will be punished. This guy will last in prison about as long as the dessert tray at Oprah’s house. And Bernie’s family will have to use form 1040FU to file their taxes this year.
And that is my legal opinion.
