Last Thursday, July 28th, Federal Judge Jed Saul Rakoff (68) shot down the court trustee, Attorney Irving H. Picard, who was attempting to recover some of the $billions from a Ponzi scheme in which a number of corporate players were involved.
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Most of the wealthy elite—comprising a ruling class in America (1/10th of 1% of the population)—operate a modified form of Ponzi scheme.
The NY Times’s Frank Rich commented recently: “The billions that vaporized in Madoff’s Ponzi scheme amounted to a rounding error next to [the] too-big-to-fail banks wracked by their own Ponzi schemes…
“The culture allowed for loftier flimflams than [Madoff’s] to succeed—though the loftier culprits, unlike him, usually escaped with the proceeds. That financial culture largely remains in place today.”
An interesting development in a lawsuit by the victims of Bernie Madoff’s Ponzi scheme has just come to light in federal court yesterday.
Originally filed back in December under secret seal by the court, it turns out that Ol’ Bernie wasn’t just running a straight-up Ponzi enterprise. The criminal conspiracy extended into the corporate house of J.P. Morgan and others. Gee, surprise, suprise…
In order to make the scam so successful (over $64 billion), he had a number of financial partners. Apparently, many of the higher investors would not have made the leap without some strong sense of its legitimacy and profitability. J.P. Morgan, Chase and others provided that cover even as they themselves made huge profits. more…
I notice the news on TV this evening is about Bernie Madoff, convicted confidence businessman serving life in federal prison at FCI Butner, North Carolina. Seems that K.C. White, a bank robber that got out last August, has a signed portrait of Bernie that he’s hustling. On it’s own, no problem.
But White claims that, while they stood together in the med line (that usually means psychotropic drugs), ”All Bernie would say was, ‘Fuck my victims! I carried them for 26 years and I got 150 years.’” White disingenuously adds, “He really showed very little remorse.” The New York magazine gives a bit more nuanced report, with Madoff reacting angrily to inmate provocations.
While this site holds no stock for predatory criminals (and destroying the lives of thousands of people so qualifies), I’d place as much credibility in K.C. White’s statement as most other inmates would: ZERO. If anyone’s inclined to buy his story at full face value, well, I got some dirt once stepped on by Gene Gotti (John’s brother) walking the track at FCI McKean, PA, I’d like to sell you.
Hey, KC! Bernie ain’t the only con man in that joint. Good luck with your picture.