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.
The trustee’s attorney, David J. Sheehan, revealed that Madoff “would not have been able to commit this massive Ponzi scheme without the bank.” That, in fact, he disclosed in the court documents that J.P. Morgan execs knew it was a scam at least 18 months before its collapse.
You and me? Hell, we’d all be long in prison doing beaucoup time… The lawsuit calls for the return to the victim fund the $6.4 billion that the J.P. Morgan got out of it.
Not a bad deal, eh? They make hundreds of billions a year on Wall Street, rip off their investors—mostly municipal and union pension plans—get bailed out by the US Treasury, get a free pass on taxes, AND even score a few $bil on the Ponzi side (their bud, Bernie, didn’t bilk them of course, he needed them to pull it off!).
I wonder what Ol’ Joe at FCI McKean thinks of all this? He scored some $4200 in a bank heist using a note. Got 12 yrs for it. You must feel real stupid, eh Joe? You’re definitely in the wrong racket, my man.
J.P. Morgan, by the way, that good ol’ American corporation—I bet they fly the Stars and Stripes in front of their office—has a long history of dirty money. Along with a number of other corporations, they even did business with the Nazis…helped create and prop them up. Yup, just Good ol’ Boys…
Of course, what the trustees and numerous gov’t players, including this and every recent president fail to grasp, is that the system itself at its highest levels is a form of Ponzi scheme.
The essential difference is that mega-money corporatism has one ingredient that the Ponzi scehers generally don’t have: You.
When corporations steal your money, jobs, homes, accounts, and very lives, and they’re about to collapse (recession/depression), they simply dip their paws into the public treasury directly for a bailout…”they’re too big to fail.”