I’ve been wondering if Bernie Madoff was able to swindle people out of $50 billion because he was greedy, or because his victims were. For years we’ve all been hearing the line, “If it sounds too good to be true, it probably is,” so you would think investors would know better.
They apparently didn’t. And they are victims, so I’m thinking: This guy must be a real Svengali.
Fifty billion dollars is an unfathomable number. Yet, we’re hearing stories that the money was never invested from the start. Everyone’s saying this is the biggest financial fraud in history. But to date, investigators say they’ve only been able to recover $950 million.
So where’s the other $49 billion?
Funny thing - that. A recent posting at Huffingtonpost.com says the $50 billion amount may be fictitious. That the $50 billion number came from Madoff, himself, and may include “fictitious profits.” The writers say they don’t know what the real amount is, but they guessed it might be less than half that amount: $20 billion.
So where’s the other $19 billion?
Madoff claims the Manhattan apartment where he’s now under house arrest belongs to his wife and is under her name. He says millions of dollars in cash and jewelry belong to his wife and not him, so they shouldn’t be touched.
At first I was outraged, but then I thought about it. What are we talking about here? $50 million in assets? $100 million? That’s nothing compared to the “billions” that Madoff allegedly stole from investors.
Is anything that Madoff claims true? Or is he so mired in his ability to spin fantastic numbers and make people believe them, that there’s nothing in his words that we can take to the bank.
There are now reports of a plea deal. I can’t wait to see how this plays out. Will the deal be based on fact, or some other fiction inspired by Madoff?
At the risk of repeating myself I have some advice for investigators handling the plea deal: Think carefully about what the defense is promising you in return. Remember: “If it sounds too good to be true, it probably is.”
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