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Madoff: Banks complicit in Ponzi scheme
Published: 16 February, 2011, 20:06
Bernard Madoff (AFP Photo / Stan Honda / Files)
TAGS: Crime, Politics, Law, USA, Finance
Facing life in prison, famed Wall Street Ponzi scheme mastermind Bernard Madoff is arguing both banks and hedge funds were complicit in and "had to know" about his scheme.
In an interview with the New York Times Madoff argued banks and hedge funds that worked with his investment advisory firm operated under a condition of "willful blindness" and failed give proper attention to discrepancies in regulatory filings.
"They had to know," Madoff remarked. “The banks and funds were complicit in one form or another.”
He contended the attitude of banks was, “If you're doing something wrong, we don't want to know.” Acknowledging his guilt Madoff said nothing could excuse his crimes.
Madoff is serving a 150-year sentence for his $65 billion Ponzi scheme that became public in late 2008.
A number of lawsuits have been brought against companies alleged to have benefited from the scheme. JPMorgan Chase & Co. is seen by many as complicit in the scheme, and along with HSBC Holdings Plc, UBS AG, and various other funds are being pushed in lawsuits to pay money back to Madoff’s victims.
Madoff has not named any specific institutions which were directly involved, nor did he name any that were specifically knowledgeable of his scheme.
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If you really want to know the Ponzi now the Madoff look no further than
the US congress.
If RT really wanted to get a jump on the story why not take the new angle?
The US congress collected the social security payments for years, then they decided to so-called "borrow" the funds, and put a marker or chit in what they
called a " Lock BOX". They are like IOU's to the American people.
After spending like drunken whores on pet projects and earmarks for years
and years. The box that was locked is empty. Now that is the story.
Also what is a Ponzi without the government help?
Have you any idea of the real Ponzi?
Those who give and make a profit, once the Ponzi is discovered have to
repay the Ponzi not just the profit but they must return any and all original funding.
Here is how this works:
The government looks the other way, then decides after many complaints to
investigate. Reason is not many enforcement officers. Once they decide it is
a Ponzi they go to the courts and then the courts order a trustee, ( another law firm) to tale over the company, burn huge amounts of billable hours in fees, into the millions to try and recover any assets held by the Ponzi and
its executives. When it is all said and done. Those who were ripped off
by the Ponzi ,now get ripped off again by the law firms posing as their
friends to recover the funds. The US SEC gets their money from fines imposed on collected Ponzi money. the Trustee makes their cut on the money
and the sucker is the investor once again