Compliments of Mark Anderson of Andertoons
Compliments of Mark Anderson of Andertoons
On the day of Peter Madoff’s sentencing, it is only fitting that the victims be heard. In a stark contrast to the image of the man portrayed by those who wrote in support of Peter Madoff, Document 298 filed by the U.S. Department of Justice on December 19, 2012 contains eleven additional victim impact statements that were presented to the Honorable Laura Taylor Swain.
Perhaps you have the impression that all of the Madoff Victims were either very wealthy individuals or institutional investors. While it’s clear that many of the victims fit this profile, it was painful to read about the financial position that many of these folks now find themselves in.
The first Impact Statement was submitted by email to the U.S. Justice Department by Marcia Ellis on behalf of Victim Martin & Marcia Ellis. The Ellis couple was comfortably retired and living in Maine when they learned from their daughter that they had lost all of their money in the Madoff Ponzi Scheme. Their losses extended to brothers, sisters, grandmothers, grandfathers, aunts and uncles. The Ellis Family filed amended tax returns with the IRS which were rejected. An appeal, which took them more than two years, resulted in a a tax adjustment of only 75% of their actual losses.
Mrs. Ellis now describes her life as one of:
“discount stores and living as in expensively as we can. Will we be able to support ourselves in our golden years – we can not plea bargain that reality away”.
The second victim statement came from Jill and Nancy Miller and was filed in order to express their dissatisfaction with the sentencing extension that Peter Madoff received from the court in order to be able to file amended tax returns with the Internal Revenue Service. The victims reported that Mr. Madoff was not using his time to get his tax situation resolved but rather:
“he was out an about enjoying a leisurely lunch in an expensive upper east side restaurant where many of his victims would like to eat but can’t afford to. Yet miraculously he can. I saw him personally eating in this restaurant. He has nerve showing his face and flaunting his freedom (extra). I hope he savored the food cause that’s not what he will get in PRISON!”
Perhaps the most heart breaking Victim Impact Statement was iled by Morton J. Chalek, a World War II Veteran. Mr. Chalek’s short statement made such an impact that it has been included in its entirety:
I welcome the opportunity to vent my spleen regarding the Madoff fiasco.
In the way of an introduction:
I am now 90 years old and bankrupt. I have been waiting hopelessly to recover the money Madoff stole from me. At the very least, I expected to receive some compensation from my SIPC insurance. Four years have passed and I have received nothing and, I see no help coming from the U.S. Department of Justice.
Mr. Picard and his clan seem to be thriving while my cause seems to be helpless.”
Morton J. Chalek
Victim Natalie, who signed her statement with the title: Direct Investor Sentenced to a Lifetime of Financial Ruin and Emotional Unrest provided perhaps the most interesting perspective for Judge Swain to consider when sentencing Peter Madoff today:
Peter Madoff was educated in the law. He was savvy enough to help create the computerized trading system. He worked closely with his brother for years. He aided and abetted his brother and helped the scheme to continue and thrive. He did a lot of damage over a long period of time. He ran the daily operations for the past 20 years and should be sentenced to the same amount of time. 20 years.
While the Federal Sentencing Guidelines are extremely complex, we would like to commend Natalie Erger for her wisdom and simplicity. Moreover for her courage and those of all who have spoken out with respect to this financial disaster. We express our sympathy for all of those who have had their lives impacted by the Madoff Ponzi Scheme and hope that the sentence imposed today on Peter Madoff by Judge Swain provides each and every one of them with some small measure of justice for their losses.
On Monday, December 17, 2012, Defense attorneys John R. Wing, Charles T. Spada and Jeannie Rose Rubin of Lankler Siffert & Wohl LLP filed a 44 page Sentencing Memorandum on behalf of their client Peter B. Madoff. The document was submitted to the Honorable Laura Taylor Swain of the Southern District of New York. Judge Swain is expected to sentence Mr. Madoff on Thursday, December 20, 2012.
Peter Madoff is the younger brother of Bernie Madoff who was sentenced on June 29, 2009 to 150 years in Federal Prison for masterminding one of the largest Ponzi Schemes in history. Principle losses to investors were nearly $20 Billion. Including recorded fictional investment gains, investors lost close to $65 billion.
The sentence imposed on Bernie Madoff by Federal District Judge Denny Chin was nearly three times longer than what had been recommended by the federal probation office and more than ten times longer than that requested by Mr. Madoff’s defense lawyers. At the time of sentencing, Judge Chin condemned Mr. Madoff’s crimes as being “extroadinarily evil”.
Now in what may very well be the final chapter in a painful saga that began on December 10, 2008 when Madoff’s sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme, Peter Madoff will stand before Swain to learn his fate.
The question that needs to be answered by the sentenced that will be imposed on Thursday by Judge Swain is whether Peter Madoff is a victim or a villain. Keeping in mind that Peter Madoff has already pleaded guilty to one count of conspiracy to violate various federal statutes and one count of falsifying books and records of an investment adviser, the Sentencing Memorandum submitted by defense counsel portrays Peter Madoff as another victim who was duped by his older brother’s Ponzi Scheme. Under his Plea Agreement, Mr. Madoff has agreed to accept a minimum sentence of no less than ten years in federal prison.
In the Draft Sentencing Report, it was reported that Peter Madoff had only learned of his brother’s Ponzi Scheme on December 9, 2008, a few days before it had been disclosed to the world. Peter Madoff’s attorneys described him as being in shock and realizing that his world had been destroyed by the loss of his reputation and any future ability to support his family financially. They further reported that Peter Madoff had been reviled by strangers, as well as former friends who all assumed that he must have had full and complete knowledge of Bernie Madoff’s Ponzi Scheme.
Peter is described by his attorneys as being someone who believed that his older brother was a brilliant securities trader. As a result, he encouraged his own family to invest millions of dollars into accounts that were managed by Bernie Madoff. The fraud committed by Bernie Madoff resulted in Peter’s wife losing millions of dollars in her Madoff account, as well as his daughter, granddaughter, sister and other relatives also suffering significant losses.
Mr. Madoff’s attorneys state: “Moreover, at the time of his plea this past June, Peter Madoff consented to a Draconian forfeiture order that in one stroke stripped him of all existing assets, his home, his pension, his savings, his personal property, etc. and all future assets and income should he even have the opportunity to earn any income after serving his prison sentence. After a lifetime of hard work, this man has been denied the ability to even collect social security”.
The facts, as presented in the Sentencing Memorandum, are as follows:
The list of disclosures contained in the Sentencing Report goes on and on. It makes for very fascinating reading. It will be very interesting to see what kind of sentence Judge Swain will impose on Thursday. Will she take the same hard line position imposed by Judge Chin when older brother Bernie was sentenced or will she buy the fact that Peter was duped by his older brother? Stay tuned as Thursday is only a few days away.
On June 29, 2012, the Peter Madoff, the brother of convicted felon Bernie Madoff, plead guilty to the following charges:
Mr Madoff agreed to the forfeiture of more than $143.1 billion which represents all of the investor funds that were paid into BLMIS from 1996 through 2008. Additionally, Mr Madoff could face a 10 year prison sentence.
For further fascinating information about the actual charges and history of the case, read the full text of the government’s charges that were filed against him.