As we digest yet more gloomy news about our (actually quite strong) economy, over in the US things are going from the sublime to the ridiculous in the case of what is the biggest con-job ever to darken the world’s doors.
First the background. You may have heard of Bernard Madoff – he’s the bloke that announced in December that his investment firm, which was the 6th biggest on Wall Street, was one giant scam that fleeced Americans to the tune of around $80 billion. No, that’s not a typo, it was $80 billion.
The latest on the case is that - file this in the 'only in America file' - Bernie may be on the verge of brokering a deal that would allow him to keep more than $100 million in cash and assets. It's also possible that he may manage to avoid doing any jail time whatsoever. P>Bernie is currently in court in the US and it’s fair to say that if he’s found guilty, which is highly likely, he’ll be looking at a life sentence in the big house.
However, speculation is building that he could strike a plea bargain saving himself from a lengthy trial and possibly scoring a sentence reduction and allowing him to keep his fortune.
Some legal experts now believe Bernie could avoid doing any jail time at all. If he can delay sentencing long enough to allow public outrage to subside, he could argue that as a frail and elderly man a jail sentence is not appropriate.
Rorted investors are understandably livid at the prospect of Bernie walking the streets again at any time in the future and have warned that “he’ll be safer in jail”.
In this case, it’s not just the little people that have been scammed. Celebrities including Kevin Bacon and chat show legend Larry King as well as some of the world’s biggest banks have been slugged by the scam.
And in a deliciously ironic coincidence, one of Madoff’s victims, who was taken for nearly $400,000, is a professor of psychology who released a book on gullibility just days before Madoff confessed.
No details are available of how the professor’s book sales are holding up.
The focus is also now firmly on Madoff’s other half, Ruth. Ruth, who has not been charged, has amassed a rather substantial nest egg of $100 million as well as a penthouse apartment in New York City worth more than $10 million. Understandably, victims’ lawyers are demanding that the money be used to pay back investors.
Unsurprisingly, Mrs Madoff claims that the money has nothing to do with her husband’s scheme and is refusing to give it back. It turns out that assets and cash have been being mysteriously transferred to Mrs M since 2006 since 2006, when US authorities began probing Madoff’s activities. But under the bargain apparently being discussed, if Bernie pleads guilty, prosecutors ma be convinced to stop persuing Mrs M.
This is undoubtedly just the latest chapter in a saga that has plenty of legs and there will be further lurid revelations to come.
So, as we consume headline after headline predicting economic doom and gloom, we can rely on America to deliver a massive scandal to take our minds off that pesky recession.
money.ninemsn.com.au 9/03/2009 9:06:00 AM,
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