29.10.09

Madoff Pal Silenced

Even the dour Financial Times admitted the death of Bernard Madoff's partner in defrauding investors of at least $65 Billion is a bit of a 'setback' for investors.

Most newspapers and broadcasters have been utterly silent on the mystery of how Madoff went to prison for 150 years without speaking a word, other than to plead guilty.

He named no names, gave no explanation as to where the money went, or how a few guys in an office could rip off hundreds of the world's richest people, with the help of the world's biggest banks.




Beijing artist Chen Wenling created this dramatic sculpture of the stockmarket bull goring to death Bernard Madoff. 
The first artist to address the mysteries of our Great Crash


At the same time, Bernard Madoff held powerful public positions among Wall Street's finest and the US financial regulator, the Securities and Exchange Commission, repeatedly ignored conclusive evidence of fraud delivered personally to its top officials.

So when Bernie's accountant, who has been revealed as the biggest winner from the Ponzi scheme, netting $7 Billion for himself, simply fell into a swimming pool aged 67, you might think some alarm bells might go off in the tiny minds of the world's press.

Boing! Wrong!

If you are not familiar with Jeff Picower's sudden death, here and here are some background stories.

And if you have any doubt the some very powerful people would quite like Bernard Madoff himself to meet with an accident in prison, here is some background to help connect the dots:

Madoff struck a deal in Feb 2009 with the SEC to neither admit nor deny guilt, and in return pay civil fines and penalties levied by the SEC.
At the same time Linda Thomsen, the agency’s top enforcement official, was resigning to “pursue opportunities in the private sector.”

This was separate from the criminal case, in which he opted for silence, refusing to answer any questions other than to admit his guilt. The 71-year old was sentenced to 150 years in prison.
Only just over $1 billion of between $50 billion up to $65 billion that he raised in his Ponzi scheme has been recovered.

Madoff was responsible for $50 Billion of losses, yet trillions in personal savings went up in smoke during the financial crisis. Where did the rest go?

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