Bernie Madoff is five months into his 150-year prison sentence and is adjusting to prison life. In fact, he's making friends and integrating into prison life.
Inmate No. 61727-054 shares an unlocked cell at the medium-security Butner Federal Correctional Complex with a younger man named Frank. He wears khaki prison garb and has been spotted walking on an outdoor track. He plays bocce, chess and checkers. He scrubs pots and pans in the prison kitchen.
The 71-year-old Mr. Madoff also is salvaging something that disappeared in the outside world the moment his fraud was exposed: respect. "To every con artist, he is the godfather, the don," says an inmate interviewed earlier this week.
Mr. Madoff has served about five months of a 150-year prison sentence for pulling off the largest Ponzi scheme ever. Losses suffered by Madoff customers are estimated at $19.4 billion.
"All things considered, he's OK," says Ira Sorkin, Mr. Madoff's lawyer. "He still suffers deeply for what he did."
WSJ's Dionne Searcey discusses Bernie Madoff's life in lockup. Take a look:
Circa Spends $50,000 in Jewelry Auction Designed to Benefit Madoff Victims
Circa, a company which buys jewelry from the public for re-sale, spent $50,000 in a U.S. Marshals-held jewelry auction designed to benefit Madoff's investor victims. Chris Del Gatto, co-founder, chairman and CEO of Circa, says they felt obliged to participate in the auction to "help Bernie Madoff's many victims reclaim a small part of what they lost in the largest Ponzi scheme in history."
Circa purchased an Art Deco diamond and emerald bracelet (pictured above) for twice the piece's appraised value of $25,000. The piece, made in 1925, has six emeralds surrounded by approximately 25 carats of diamonds.
Jeffry Picower, a Florida philanthropist and friend of Bernard Madoff, has died. He was found dead in his pool on Sunday. Reuters reports that Jeffrey Picower is alleged to have benefited from the Madoff ponzi scheme. He is being sued for $7.2 billion by the trustee handling the Madoff fraud cause.
The trustee handling the Madoff fraud case, Irving Picard, said in court documents filed in U.S. Bankruptcy Court in New York late last month that Picower, newly listed as one of the 400 wealthiest Americans by Forbes magazine, was complicit in the fraud.
Part of Picard's filing said: "Based upon the trustee's investigation to date, Picower was the biggest beneficiary of Madoff's scheme, having withdrawn either directly or through the entities he controlled more than $7.2 billion of other investors' money."
Picower was being sued for the $7.2 billion, $2 billion more than the trustee in the case demanded in May.
He was listed 371st and worth $1 billion on the latest published Forbes list.
Palm Beach police say they are doing a standard investigation of the drowning. Take a look:
A court-appointed trustee is suing several relatives of Bernie Madoff in an effort to bring more money into the estate. Bernie's brother, sons and niece are all targets of the trustee who wants to get around $200 million from them.
The trustee, Irving Picard, alleged that Mr. Madoff's brother, Peter, his sons, Andrew and Mark; and niece Shana all received preferential payments or fraudulent funds stemming from the fraud. The funds enriched the family members, allowing them to fund personal business ventures and purchase homes, boats and cars, according to the lawsuit.
Mr. Picard is seeking at least $198.7 million, including about $141 million that allegedly was received by the family members in the six months leading up to Mr. Madoff's arrest in December 2008.
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Mr. Picard alleged that Peter Madoff, the firm's chief compliance officer, improperly received more than $60 million paid to himself, his family members and to entities on his behalf. The trustee said Peter Madoff invested only $32,146 into his own investment accounts at the Madoff firm, including just $14 after 1995, yet withdrew $16.25 million from those same accounts, at times through the fabrication of backdated trades that never took place.
According to the suit, customer funds were used to purchase homes for Peter Madoff on Park Avenue in Manhattan and in Palm Beach, Fla. Mr. Picard accused Mark Madoff and Andrew Madoff of receiving directly or through related entities $66.9 million and $60.6 million, respectively, in improper compensation and through falsified transactions between 2001 and 2008.
Mark and Andrew Madoff's attorney says that they had no prior knowledge of Bernie's crimes and that they also suffered substantial economic losses because of the fraud. Peter Madoff's attorneys have also denied that Peter had anything to do with the Ponzi scheme.
Convicted con artist Bernie Madoff is on his way to a federal penetentiary to start serving out his 150 year sentence for defrauding thousands of investors out of hundreds of millions of dollars. Bernie didn't end up in the jail he asked for, though.
He had requested the Federal Correctional Institution in Otisville, N.Y. U.S. District Judge Denny Chin, who handled Mr. Madoff's criminal case in Manhattan, indicated he would recommend that the Ponzi-scheme operator serve his time in the Northeast.
Butner includes two medium-security prisons, a low-security prison, medical facility and satellite prison camp for minimum-security male inmates.
As of Monday evening, Mr. Madoff was en route to Butner but hadn't arrived, said a person familiar with the situation. Scott Sussman, a spokesman for the federal Metropolitan Correctional Center in Manhattan, said Mr. Madoff left that jail Monday morning. Mr. Sussman declined to comment on where Mr. Madoff was being transported.
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Inmates at Butner include Adelphia Communications founder John Rigas and his son Timothy, both found guilty in 2004 of securities fraud. The Rigases are being held in the low-security prison, according to the Federal Bureau of Prisons. John Rigas, 84, is scheduled to be released in 2018, and Timothy Rigas, 53, in 2022.
Other potential new friends for Bernie include convicted swindler Al Parish, a former economist at Charleston Southern University who ran a $66 million Ponzi scheme, and former Rite Aid Corp. Vice Chairman Franklin C. Brown who is currently serving a ten years sentence at Butner, a medium-security facility.
Bernie Madoff has been sentenced to 150-years in prison for running a multi-billion Ponzi scheme that ruined many people's lives. Bernie Madoff will be in jail for the rest of his life. The long sentence surprised experts - many thought it would be a 30-year sentence.
U.S. District Judge Denny Chin said, "This is not just a matter of money. The breach of trust was massive. Investors - individuals, charities, pension funds, institutional clients - were repeatedly lied to, as they were told their monies would be invested in stocks when they were not."
Judge Chin said Madoff's crimes were "extraordinarily evil."
Judge Chin said, "Here the message must be sent that Mr Madoff's crimes were extraordinarily evil and that this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll."
Judge Chin also noted that there were no letters from friends, family or supporters submitted on Mr Madoff's behalf.
Here's a roundup of some of the issues surrounding Bernie Madoff and his sentence:
Ruth Madoff Cedes Claims to $80 Million Worth of Assets in Her Name
Ruth Madoff, wife of admitted swindler Bernie Madoff, has reached an agreement with prosecutors to waive her claim to $80 million of the family's assets. All her homes will be sold and she will be allowed to keep $2.5 million in cash. Ruth has maintained that she had no knowledge of her husband's Ponzi scheme which bilked millions out of friends, family and investors.
The settlement with the U.S. attorney's office in Manhattan was approved late Friday by U.S. District Court Judge Denny Chin, who is scheduled to sentence her husband, Bernard Madoff, on Monday in a final courtroom stand that will seal his legacy as one of the world's most successful thieves.
Mrs. Madoff won't attend her husband's sentencing in federal court in Manhattan but may provide a statement upon its completion, her lawyer, Peter Chavkin, said Saturday.
The settlement involving Mrs. Madoff was finalized alongside a court order of forfeiture against Mr. Madoff in the amount of $170 billion, which represents the amount of money that prosecutors say flowed into his investment firm.
However, that massive amount is largely symbolic and simply an indication that prosecutors can tap any assets of Mr. Madoff's they can find. Much of that money went back out to investors in the form of withdrawals but also funded the Madoff family's lavish lifestyle and that of some associates.
The agreements set the stage for Mr. Madoff's appearance before Judge Chin on Monday. Prosecutors on Friday asked the judge to give Mr. Madoff the statutory maximum of 150 years in prison, or at least a term that would effectively be a life sentence. His attorney has asked for far less -- as few as 12 years. Lawyers expect him to receive 25 to 35 years.
Bernie Madoff is said to be terrified of going to federal prison. Experts say that because he is going to get sentence longer than a decade, he can't qualify for one of the minimum security facilities which are nicer than other prisons. He will most likely end up in a low or minimum security prison in Fort Dix, New Jersey, Otisville, New York or Allenwood, Pennsylvania.
Bernie Madoff's 55-foot yacht named "Bull" has been seized by the U.S. Marshals service. A spokesman for the U.S. Marshals Service says the yacht was kept in extremely great shape.
The 55-foot yacht named "Bull" and a 24-foot motor boat were taken from marinas on Florida's east coast, said Barry Golden, a spokesman for the U.S. Marshals Service. The yacht, a 1969 Rybovich, is worth $2.2 million.
"A lot of money was put into maintaining this boat," said Golden. "This boat was extremely well kept, extremely clean. Engine compartment was spotless. It looked like somebody took a bottle of 409 and scrubbed it every day."
A smaller boat that Madoff owned named "Sitting Bull" was also taken.
Bernie Madoff has plead guilty to all charges, in a shocking courtroom scene. Madoff, who admitted to running a giant Ponzi scheme in which he took investors' money and only pretended to invest it, has bankrupted scores of wealthy clients and many Jewish charities. But he didn't just rip off strangers: he defrauded close friends and even his mentor of 40 years. The losses are estimated to be in the billions.
In a courtroom surprise, it was revealed Tuesday that Bernard Madoff will plead guilty Thursday to securities fraud, perjury and other crimes, knowing that he could face up to 150 years in prison for one of the largest frauds in history. The revelation came as prosecutors unveiled an 11-count charging document against the 70-year-old former Nasdaq chairman, and as his lawyer, Ira Sorkin, told a judge that Madoff planned to plead guilty this week without a plea deal.
Madoff has been under house arrest in his $7 million Manhattan penthouse since he was arrested in early December after authorities said he confessed to his family that he had carried out a $50 billion fraud. In court documents filed Tuesday, prosecutors raised the size of the fraud to $64.8 billion, an amount recounted in apparently false statements from November 2008.
Authorities reviewing the finances of Madoff's business say the actual loss was more likely much less and that higher numbers reflect false profits he promised investors. So far, authorities have located about $1 billion for jilted investors.
Sorkin, prosecutors and U.S. District Judge Denny Chin presaged the drama likely to unfold Thursday as Madoff, wearing a gray suitcoat over a black tie, sat quietly beside his lawyers.
The fact that he plead guilty without a plea deal is extraordinary. He won't be sentenced for months, but will most likely face life imprisonment. Many victims are demanding to make statements at the hearing on Thursday as is allowed by New York law. Court officials expect the proceedings to be quite emotional as investors confront the man who wiped out their life savings.
Photo: New York Magazine's Bernie Madoff, Monster cover.
Bernie Madoff Action Figure to Debut at New York Toy Fair
One of the products debuting at the upcoming New York Toy Fair is a Bernie Madoff action figure. Reuters says the action figure comes with a little rubber mallet that angry Madoff victims can use to "pulverize Bernie."
The Madoff action figure, however, was born as a way to help his friend, an irate Madoff victim, feel a little better, said creator Graeme Warring. The figure, which is made to look like a devil, also comes with a hammer that can be used to "pulverize Bernie," the website says. Warring eventually ended up making a couple more such figures for others and is unveiling it widely at the Toy Fair.
The Madoff figure is made by Modelworks, a company which makes personalized Mini-Me action figures. A single Mini-Me using a standard body start at $89.95 plus $20.00 shipping.
Many Celebs, Politicians on List of Madoff Fraud Victims
The list of victims of the Bernie Madoff pyramid scheme has been released as part of the U.S. Bankruptcy court proceedings. The list contains many well-known personalities and celebrities: Steven Spielberg, Larry King, John Malkovich, Kevin Bacon, publisher Mort Zuckerman, Mets owner Fred Wilpon, economist Henry Kaufman, and Former New Jersey Mayor Burt Ross ($5 million) are just a few of the people who got ripped off by one of the greatest con men of our time.
Another Ponzi Scheme: Nicholas Cosmo Accused of Swindling Investors Out of $370 Million
The owner of a New York investment firm is being held without bail after a court hearing Tuesday. Nicholas Cosmo is accused of luring clients with promises of returns of 80% or more. Cosmo allegedly duped 1,500 people in his $370 million Ponzi scheme. Bloomberg says Cosmo used the money to fund a baseball league and buy limosines. It's small compared to Madoff's massive $50 billion Ponzi scheme but it means more people's finances have been wiped out by crooks.
Actress Zsa Zsa Gabor Swindled for $10 Million by Madoff
Actress Zsa Zsa Gabor and husband Frederic von Anhalt may have lost as much as $10 million to Bernard Madoff's $50-billion Ponzi scheme. Bloomberg says the couple may be forced to sell artwork, jewelry and possibly even their Bel-Air home.
Von Anhalt said in an interview yesterday that he and Gabor may face financial ruin. They could be forced to sell artwork, jewelry and their home in the Los Angeles enclave of Bel-Air, von Anhalt said. The National Enquirer reported the losses earlier.
"It's a big hole, you know," von Anhalt said. "We didn't expect that. When you count on the returns, you depend on the money. It's bad. You go to get your money back and all you have is a bunch of worthless papers."
Frederic von Anhalt understandably said he would like to "take a baseball stick and hit this terrible man over the head." The list of celebrities caught up in Madoff's scheme is long and growing longer. Kevin Bacon and Kyra Sedgewick, author Alexandra Penney and Larry King are among those who have been Madoffed.
Bernie Madoff has been sentenced to 150-years in prison for running a multi-billion Ponzi scheme that ruined many people's lives. Bernie Madoff will be in jail for the rest of his life. The long sentence surprised experts - many thought it would be a 30-year sentence.
Bernie Madoff has 
