How Bernie (Madoff) did it

How Bernie (Madoff) did it

money.cnn.com

The employees were transfixed. Standing on the mid-Manhattan trading floor of Bernard L. Madoff Investment Securities in late 2007, a half-dozen staffers stared up at the ceiling-mounted TV as CNBC aired a report on the mysterious Palm Beach death of a hedge fund manager who had been leading a double life. The police, it appeared, were even considering the possibility that he had been murdered. "Bernie," someone casually asked as Madoff happened to walk by, "have you heard of this guy?"

Madoff glanced at the screen, blanched, and exploded: "Why the F would I be interested in some S--- like that?" The employees recoiled. "I never saw him react like that before," says a Madoff trader who witnessed the outburst. "It obviously hit a nerve."(visit the link for the full news article)

Edited to complete paragraph.

[edit on 24-4-2009 by grover]

The story goes on to say that:

... Then there was the man who ran the floor, Frank DiPascali, Madoff's chief deputy on 17. He was a 33-year veteran of the firm, with a rough Queens accent and a high-school education, but nobody was quite sure what he did or what his title was. "He was like a ninja," says a former trader in the legitimate operation upstairs. "Everyone knew he was a big deal, but he was like a shadow."...

AND:

... Now that fog may be about to lift. Fortune has learned that Frank DiPascali is trying to negotiate a plea deal with federal prosecutors in which, in exchange for a reduced sentence, he would divulge his encyclopedic knowledge of Madoff's scheme. And unlike his boss, DiPascali is willing to name names.

According to a person familiar with the matter, DiPascali has no evidence that other Madoff family members were participants in the fraud. However, he is prepared to testify that he manipulated phony returns on behalf of some key Madoff investors, including Frank Avellino, who used to run a so-called feeder fund, Jeffry Picower, whose foundation had to close as a result of Madoff-related losses, and others. If, for example, one of these special customers had large gains on other investments, he would tell DiPascali, who would fabricate a loss to reduce the tax bill. If true, that would mean these investors knew their returns were fishy.

Now what I find interesting is the last two sentences:

If, for example, one of these special customers had large gains on other investments, he would tell DiPascali, who would fabricate a loss to reduce the tax bill. If true, that would mean these investors knew their returns were fishy.

The possible implications of this are enormous and could bring down some powerful people and instituitions.


money.cnn.com
(visit the link for the full news article)

Now THIS is a real conspiracy as opposed to some of the utter nonsense posted here.

If it turns out that (at least some) of the investors knew what was up... given the major names on his client list the disclosure could be explosive...

What are the odds something happens to Frank DiPascali before he has a chance to talk?

reply to post by grover

First of all, I disagree with you on the nonsense part. This is a conspiracy website.

Stuff like this happens all the time. He is higher on the food chain and I predict that Bernie/others will be let off easily.

Given some of the threads posted here... nonsense is the correct word... but not for all of them.

This is a serious story and I am really surprised that no one else has commented on it.

Hey, how about some of those "enhanced interrogation" techniques we keep hearing about being applied? After all, they are perfectly legal aren't they?

DiPascali will either see the error of his ways and commit suicide in jail (honest - trust us, would we lie...etc) or he'll cut a deal and the info will never see the light of day as it's all probably far too damaging to people in very high places. The story will get buried under a new crisis and will eventually disappear.

reply to post by grover


Most of the threads here are backed up with a lot of facts. Otherwise they're conjectures... and all of the users here are intelligent and site sources with their threads etc. I'll try to find you examples of what I think are good threads and I'll u2u you or something later.

A good thread on Madoff is most welcome. As big a fish as he may seem to be, from a lot of indicators, he was an major facilitator for large scale money-laundering, illegal proceeds from the usual suspects.

I'm wondering how much of this will ever be traceable. Madoff's lack of proper bookkeeping will be advantageous in concealing cash infusions and rake-offs. He will never have to worry about charges of fiscal irresponsibility or tax evasion.

DiPascali has to talk as there is little question he would be charged and almost certainly convicted. We can only speculate how much he is prepared to tell and how laundered his story will be. Trying to clear Madoff's relatives may tell us something.

It would be great if this story comes out in full as there are tentacles that go right into the upper floors of the Democrats.

Maybe there are linked smaller scale Madoff-type overt scam operations or spin-off still to be discovered.


Mike

I think Madoff did it with the help of many others in high places. The money probably went to Israel. The big clue is the huge numbers of Jewish persons and institutions that were placing money with Madoff. The money would be made to "disappear" and the American public would be made to feel sorry for the people that lost the money. The money would fund Israeli black ops and the U.S. taxpayers would be made to pay back the money to the poor, poor Jews that lost it.

It is a funnel to Israel. Madoff will probably disappear under strange circumstances and be reported dead. He'll vacation for the rest of his life in some place that Americans don't visit often. He will be taken care of for life as a reward for bringing $60 billion to Israel.

The story will make Americans feel like Wall Street can not be trusted. Ironically, the Americans will be told to not think about the stock market and to put their money into the hands of professionals that will manage it for them. The money managers will triple their money every year and give the people a solid 10% annual return. The nightly news will comment that 10% is really, really good.

Originally posted by mmiichael

overt scam operations

Penny stock operators based in Canada and working through Nevada fleece the U.S. public of billions and send it off to who knows where. Probably to Israel. The only thing the Media ever reports is that investors should stay away from get rich quick schemes and instead put their money into mutual funds for a really, really good 10% return. This however does not stop generation after generation of Americans from attempting to grab hold of the dream by throwing money into penny stock scams. It is like telling a child not to do something and then watching the child do it anyway.

Originally posted by THX-1138

I think Madoff did it with the help of many others in high places. The money probably went to Israel. The big clue is the huge numbers of Jewish persons and institutions that were placing money with Madoff. The money would be made to "disappear" and the American public would be made to feel sorry for the people that lost the money. The money would fund Israeli black ops and the U.S. taxpayers would be made to pay back the money to the poor, poor Jews that lost it.

It is a funnel to Israel. Madoff will probably disappear under strange circumstances and be reported dead. He'll vacation for the rest of his life in some place that Americans don't visit often. He will be taken care of for life as a reward for bringing $60 billion to Israel.

Great speculation. I wonder what your information sources are. I wonder if they know anything or are just making prejudiced guesses. This smells like something Jeff Rense would throw out.

Hard to reconcile all said in that Madoff is convicted on criminal charges and in prison. His cronies are being charged one by one.

The Jewish organizations and people that lost their savings are pretty much a matter of public record. They've had businesses closed down, homes taken away, bankruptcies, and all around lots of instant impoverishment. They're not getting much back any time soon.

If Madoff was Jewish and operated out of New York and Florida, who would you expect to be his contacts and clients? Saudis, Iranians, Chinese, the Mormons?


Mike

Madoff was a community organizer. He was the point man to gather money from Jewish people and organizations that was then made to 'disappear' to who knows where. Now that the money has been sent away to its destination the U.S. taxpayers are being asked to cover the bill. It was a bunch of Jewish people pooling money and sending it away and now asking for the Government to reimburse them. It is only logical to think the money was pooled for some major Jewish interest. That would be? Hmmm.......

Originally posted by THX-1138
Madoff was a community organizer. He was the point man to gather money from Jewish people and organizations that was then made to 'disappear' to who knows where. Now that the money has been sent away to its destination the U.S. taxpayers are being asked to cover the bill. It was a bunch of Jewish people pooling money and sending it away and now asking for the Government to reimburse them. It is only logical to think the money was pooled for some major Jewish interest. That would be? Hmmm.......

Jew haters have speculated similarly.

But all the facts contradict that notion. Madoff was an equal opportunity crook. Jews got burned as much or more than any other group. The government at most reimburse them a small fraction of what they lost. There are ceiling limits on payouts.

The money is slowly being tracked and nothing indicates large transfers to Israel, directly or indirectly.

Billions disappeared from the stock market crash of 2008. Had Madoff been playing completely straight many billions would still have been lost, Jewish and otherwise.

More than likely Madoff was fronting a huge drug cartel money laundering scheme. When they demanded their investment back the gig was up.


Mike