Bernie Madoff ‘Happier’ Behind Bars

Jack Humphrey, Regulatory journalist
October 30, 2011 /

Convicted big-time fraudster Bernie Madoff is happy to be in jail, which would last for 150 years.

The man behind the massive Ponzi scheme that siphoned millions of dollars in investments from unsuspecting investors told the ABC News he is happy in prison.

Madoff said he feels safer in jail than outside because he knows where he would die, unless of course he’ll get a pardon. For the past two decades in his life, Bernie Madoff lived in fear, according to him.

Madoff further told ABC about the common perception by the average person on him; he defrauded widows and orphans, but he said he made the rich even richer.

According to Madoff, his middle-income investors are getting their principal back “or at least 60 cents on the dollar.”

Bernie Madoff was arrested on December 11, 2008, after authorities discovered his multibillion-dollar Ponzi scheme.

On June 2011, Eric Lipkin, a longtime employee at Bernard L. Madoff Investment Securities LLC (BMIS) consented to the settlements of the Securities and Exchange Commission for helping Madoff and his firm deceive and defraud investors and regulators about the Ponzi scheme.

In a complaint filed before the U.S. District Court for the Southern District of New York, the SEC alleged that Lipkin and Madoff collaborated in defrauding investors and misleading auditors and regulators about the multi-billion dollar Ponzi scheme.

Lipkin allegedly “processed payroll records for “no-show” employees, falsified records of investors’ account holdings, and played a role in executing the entirely fictitious investment strategy that Madoff and BMIS claimed to be pursuing on behalf of its clients.”

Using investors’ fund, Madoff enriched himself, his family, and his associates. He also paid off other investors as how Ponzi scheme operates.

Lipkin prepared a false Depository Trust Clearing Corporation (DTCC) reports showing the sham investments for clients, thereby helping Madoff elude regulatory measures.

Lipkin allegedly got paid by the firm for his work on misleading auditors and examiners. The “bonuses” were paid annually, with another $720,000 from Madoff paid to him to buy a house, an amount he never paid back.

 

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