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Monday, June 29, 2009

MORE: Madoff's 150-year sentence 'sends a message'

Re Bernard Madoff's 150-year sentence for defrauding investors today: Albert S. Dandridge 3d, a two-time former senior Securities and Exchange Commission official who's now chairman of the securities practice at Schnader Harrison Segal & Lewis LLP Philadelphia, writes:

"I am not surprised by the 150 year sentence Judge Chin handed down to Bernard Madoff today. Notwithstanding the massive fraud that took place, and the severe losses individuals and entities sustained, I believe the Court probably realizes that Bernie Madoff could not have acted alone in such a huge Ponzi scheme. Madoff was probably going to spend the rest of his life in prison no matter what.

"However, I believe a message is being sent to those who may have been participants in this fraud with Bernie Madoff. Such a sentence will give the SEC and DOJ leverage with respect to such persons to get to the bottom of the scheme, notwithstanding Bernie Madoff’s non-cooperation."

ALSO: "The sentence is of significance to the investors and it sends a loud message to others," said Richard A. Levan, a Philadelphia securities lawyer and former assistant U.S. attorney in Washington DC and senior SEC trial lawyer in Philadelphia whose clients include a Madoff "feeder fund" whose investors lost money.

Next in the Madoff case: "They've also indicted the accountant, and the SEC sued a couple of close confederates claiming they should have known. It suggests that no one at the top of the fraud is cooperating."

How Madoff scandal helped investors: "What's changed dramatically is the tone and toughness of the regulators since the Madoff scandal broke. It is palpable. I find they are more active, less flexible, and in search of tougher penalties.

"The SEC and Finra are definintely more concerned about their public profile. Client investors now know that it's no longer business as usual. They're doing tougher exames and one of their preoccupations is confirming custody -- that the money is really there. They're more likely to act on tips. Their response," in recent cases Levan has been involved with, "is nothing short of impressive. It's a notable step forward."
Posted by Joseph N. DiStefano @ 12:13 PM  Permalink | 4 comments
Comments   
  • 0 like this / 0 don't   •   Posted 12:37 PM, 06/29/2009
    It would be best if we can get as much of the money as possbile back. Madoff could not pull this stunt alone for so many years. This is just the start. Get all his ill-gotten gains and start distributing his wealth to the victims.
    — SayHello2MyLittleFriend
  • 0 like this / 0 don't   •   Posted 12:52 PM, 06/29/2009
    I think many people were aware something was rotten but were making so much money they kept quiet so there are fewer victims here then we were lead to believe at first.
    — hejira33312
  • 0 like this / 0 don't   •   Posted 1:29 PM, 06/29/2009
    When are they going to sentence Chris Dodd, Barney Frank and their liberal fraudsters who stole hundreds of billions from taxpayers through Fannie Mae? Madoff is chump change ( comparatively ).
    — JerryCurlan
  • 0 like this / 0 don't   •   Posted 2:20 PM, 06/29/2009
    I don't feel bad for any of the "victims" My company looked at investing in Madoff's fund and the returns were astronomically rediculous! There is NO WAY anyone could have maintained 18%-22% MONTHLY returns for a year, let alone decades! Especially considering if he moved even ten percent of his (fake) $65B holdings, it would have affected the entire market. When we questioned the track record, we were told that Mr. Madoff's experience as head of the NASDAQ gave him a unique inside track with brokerages. Everyone of his investors thought they were getting the benefit of insider trading and a better deal than everyone else. They were all happy to reap the benefits as long as somone else was doing the crime. As for the institutional investors, they should have seen the enormous, flaming red flags just like we did. Also note, long time investors have received considerable returns on a quarterly basis - one profiled in this newspaper, received $400k a year - so they got something out of him.
    — msmame


4 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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