Despite my utter disdain for Mr. Madoff, and obvious mistrust for this miscreant, his words on this subject – fraud – must be given some weight.
I’ve been mulling what Bernard Madoff said the other day in a prison interview with the New York Times. He has been mostly silent for over two years since his incarceration, so at a certain level it’s interesting to just hear what is important to the world’s most notorious thief. Would his first utterances be devoted to sympathy for his son Mark who tragically committed suicide earlier this year; surely a desperate act linked to the legal and emotional turmoil resulting from the crimes of the father? Or would his short time on the bully pulpit be devoted to an apology to his many victims, including all those charitable foundations that are now either penniless or (at best) have been forced to cut back dramatically on the services they provided to the poor, disabled and others in need? Nope. Instead his words, as reported in the Times, focused on JPMorgan Chase, and his contention that “they had to know” about his fraud and Ponzi scheme.
In some ways, I want to shake his hand and buy him a carton of cigarettes (or whatever the currency de jour is of the North Carolina Federal Prison where he will spend the rest of his life). But this is Bernie Madoff, the Hanibal Lecter of financial criminals. Turn your eyes for a second, and he has stolen your wallet; turn your back and he has control over your IRA; try to walk away and he’s now gotten your kids’ college fund and the proceeds of your life insurance policy.
Nevertheless, despite my utter disdain for Mr. Madoff, and obvious mistrust for this miscreant, his words on this issue – fraud – must be given some weight. He is by any estimation an expert on the subject. Wouldn’t it be wonderful to see Mr. Madoff put on the stand by Mr. Picard at a trial of JPMorgan Chase? Both the direct and cross examination would be fascinating. I’m confident though that in the end, Madoff’s testimony would be credible. There is no way he could have been moving billions in cash without raising some suspicions. But he was a “good” customer and no questions were asked.
Sadly for Madoff’s victims, JPMorgan Chase’s phalanx of high-powered lawyers will likely keep Madoff off the stand and the case will never reach a jury. (But that, friends, is a story for another day.)
(Full Disclosure and Disclaimer: My firm is counsel to victims of several Ponzi schemes where it is being alleged that a bank, including JPMorgan Chase, is liable for all or some of their losses).