The Blog Of The Securities Industry Professional Association

“Nothing To See Here, Folks”

Sweeping The Scene Clean of Madoff’s Victim’s Blood

Bernie Madoff plead guilty to 11 counts of fraud yesterday in Manhattan. While acknowledging that we are not Crime Scene investigators in New York, Vegas or Miami, the SIPA is shocked at the apparent cover up in the whole Madoff mess.  Although I’m no genius, I do consider myself a pretty good judge of common sense and human nature.   Why in the world would Madoff just plead guilty to all counts and go directly to jail without passing go or collecting his $200 bucks?  This is America damnit and nobody in this country is ever guilty…and even if they are, they say it was someone else’s fault.  OJ Simpson butchered two people and had bloody clothes all over his house….but he wasn’t guilty.  Robert Blake of Berretta fame excuses himself from dinner goes out back and kills his ex wife and then goes back to dinner about an hour later…But he was innocent too.  Now along comes Bernie Madoff and his now 64 Billion Ponzi scheme and all he can say is “ I’m guilty of everything”?   Please spare me talk about him owning up to his evil ways or remorse.  The guy is a total unadulterated scum and a con man. He would have kept his scheme going as long as possible…

But – Had Madoff plead innocent to all charges, he would likely have spent the next several years confined to his 7 million penthouse in the city.  He is 71 years old and any trial would have taken years due to the size and depth of this scam.  It is very conceivable that Madoff might have died of natural causes before ever spending a single nite in jail. So his guilty on all accounts has me concerned that the fix is in. It fails the common sense test.  Why would no defense be presented?  For instance, in the OJ case a police officer who once uttered the “N” word 12 years earlier became a two week sensation and a side show to divert attention away from the fact that OJ killed two people.  Despite the atrocities Madoff committed, there wasn’t a single smoking gun the lawyer could hang his hat on? 

And what about the Prosecutor? How could he have just let Madoff go quietly into the night when this is the sort of case a prosecutor dreams about for an entire career? A scumbag of mammoth proportions caught dead-to-rights. Under normal circumstances, the Prosecution of a cretin like Madoff would have been used to send a message. Particularly in light of the massive damage that Madoff inflicted – to confidence in our financial system – not to mention the actual ruined victims. 

There Were No Trades Done By The Madoff Fund. So… WHERE IS THE MONEY?

I believe the guilty plea should no be accepted because there are still so many questions out there to be answered. We know Madoff is scum,  but if we don’t know HOW we cannot prevent this from happening again.   A long drawn out trial would be in the publics best interest because it would allow investigators to see where tey failed and how to prevent it from happening again.  For example, as of today they are pegging the losses at 64 BILLION dollars!!!!!…Im going to repeat this again for effect..64 BILLION DOLLARS IN LOSSES.

Now im going to throw some sobering, shocking and quite frankly scary numbers at you.  They are scary because quite frankly they don’t add up and it may make you question our government.  The Madoff scam goes back approximately ten years and investigators now say they cannot find any trades run by his fund.

For the sake of keeping it simple, let’s assume that just about every day for the last ten years Madoff spent the money.  360 days a year for ten years Madoff spent the money.  If you divide the 3600 days into the 64 billion loss, that means Bernie spent 17 MILLION DOLLARS A DAY…do the math …its impossible to spend that much.  Had he been playing the horses, buying risky derivatives or some other venture….it still could not add up to 17 million per day.  They keep saying he had a lavish lifestyle, but come on, 17 million per day?  The plea should be rejected until we figure what we are charging him with. 

Instead the government and the regulators are almost like a cop at a grotesque murder scene telling pedestrians “Nothing to see here folks, keep moving”.  Blood and body parts are everywhere but the cop keeps the crowd control face on and just pretends everything is going to be ok…Just like the Madoff plea yesterday.. “Nothing to see here folks, He spent 17 million dollars a day every day for 10 straight years…keep moving folks”

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March 13th, 2009


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