Why Feds Feel the Need to Grab Madoff Fast

The Feds’ rush to incarcerate Bernard Madoff has nothing to do with the jewelry-laden gyftte boxes he shipped out to assorted friends and family around Christmas. Nope; they’re terrified Mr Plod, of Fairfield, Conn., will get him under lock and key first.

Fairfield officials have begun their own criminal investigation of Bernard Madoff as the town deals with losing $42 million in municipal pension money it invested with the disgraced New York financier.

Deputy Fairfield Police Chief Gary MacNamara says his department will investigate a fraud complaint filed by the town...he expects police to apply for an arrest warrant for Madoff when their investigation is complete.

Fairfield originally invested in Madoff in 1995, through Tremont’s Rye Broad Market fund; it eventually contributed around $20 million (depending on whether you believe the local press report that puts the sum at $17 million, or the one that puts it at $22 million. Details). Tremont founder Sandra Manzke took the account with her when she formed Maxam Capital Management in 2005.

So that would probably be who town attorney Richard Saxl has in mind when he said “officials will pursue other legal actions to try to recoup as much money as possible.” Always assuming Fairfield’s chief fiscal officer Paul Hiller (below) can find the relevant documents in his filing system.

Conn. town launches own Madoff investigation

AP via New Haven Register Jan. 13 2009

Seeking Jail, Argues Madoff Can’t Be Trusted

by Zachery Kouwe

DealBook (NYT) Jan. 13 2008

Comments

[Sailorman:]

Why oh why is Madoff the Ripoff out on BAIL? Put him on the chain gang where he belongs....1

Jan 14 06:34 PM

[a. palmer jr.:]

And not a plush "white collar" prison either.

Jan 15 09:57 AM

[prairiedog555:]

Madoff is worse than a child molester, he is a betrayer of trust. If he had done what he did in China he would have faced a firing squad already.
Hopefully his employees and associates will also face punishment.
And what about all of the Wall Street crooks? Is there no justice for rich people?
I am watching what Mr. Obama will do, how he handles this will be an insight into his character.

Jan 15 10:29 AM

[kotika98:]

how is it that his sons are not in the slammer with him together yet?

Jan 15 10:36 AM

[notsosmart:]

made-off is a piker compared to wall st. & the us govt.the sheeples are so stupid.this guy is a life saver as the headlines zoom in on him instead of the real culprits.the sec group should be going to jail along with him.never happen.

Jan 15 11:06 AM

[OldNavySailor:]

What other person(s) have been indicted under federal/state statutes for committing acts of financial Armageddon during this economic crisis?

There must be more persons charged with crimes given the magnitude of fraud and deception besides Mr. Madoff. What do you think will happen to him?

1. Will he plea bargain with prosecutors to a lessor crime?
2. Will he be murdered under the pretense of suicide to cover up criminal acts by other people?
3. Will he serve time in a federal penitentiary or be remanded to a minimum security facility and for how long?

Remember Michael Milken during the early '90's?

He served less than two years even though he was convicted under the RICO act for defrauding investors. His buddy Ivan Boesky served three and a half years, but then he didn't have Alan Dershowitz for an attorney like Milken had.

Both of them are still wealthy today: Milken is worth over 700 million, Boesky has $20 million from his divorce settlement.

But if you smoke a joint and get caught ... well, you can see the irony in that!

Jan 15 12:02 PM

[bobbobwhite:]

America is getting worse than the England it broke from in the 1770's. The ultra rich ran everything there then and the common man could never get his due, much less a break. So, what's so different about America today than then? What a crock our version of "democracy" is.

Rich crooks here well know that when/if they get caught, they will have at least millions stashed away(Dubai, Monaco, Macau, Shanghai, etc) for their kinglike lives they will so graciously live after a short stint in a resort prison where they have their own computer, gourmet meals brought in, and get their own furnished cottage to live in next to a tennis court.

Man can do so much better, so why doesn't he try harder to be more fair and just to all men instead of so many spending all their time lining their pockets at the expense of others? Probably something went wrong in the mutation that made us men from apes as apes are better.

Jan 15 12:13 PM

[ussmls7:]

Crooks look out for each other, I bet the Feds wants to keep him close as possible or he might spill the beans on them and start giving out names of the past regulators that have moved on to high paying jobs on Wall Street or got into Goverment? I dont think Madoff would have got caught,if the (Geeks of Keynesian Schools), that where the creators of the OCDs,SIVs & other 3 letter trading scams that started the great Fall of Wall Street Banking & Housing Mess!! As long as the Markets where moving along with the daily ups & downs,Madoff had no problems! Then it was Goldmans who knew it had to dump those Worthless SIVs,before the other banks did the same,so it began! GS had greedy buyers around the world,thinking they could make a big fat profit just as Goldmans did,but it did not happen! Goldmans knew the SIVs had no value, or they would have not sold them as fast as they could. They had access to info others did not, and with that info,they sold the worthless paper to the World.It was after the panic by the people,making runs on Banks & other Wall Street failures, that put Madoff scam in trouble.But Madoff did not stop,untill it was plain that Ben & Hank could not stop the run away train and Wall Street was sinking to the bottom!
You have heard the saying "Thick as Thiefs"! It is impossible that of all the people that worked at these giant I-Banks,that there was no one that knew what was happen,as all of the different Loans were packaged up and sold to others as SIVs,knowing that homes had been over apraised,no income loans,you name it & it was put in them! Then sold again at a bigger profit! It kept growing until no one could understand what they bought or how to determine its worth! Inflated SIVs now took a life of its on,exposing everyone that touched them! This Toxic Waste that no one would reported to the SEC,FBI & Congress, or did they? I think Madoff would have never got caught if the economey had remained on a sound footing,because Regulators were not doing their jobs ,just like Congress was not doing theirs,Congess was spending time on Baseball & other Wastefull spending! Madoff scammed billions,& the Banks scammed Trillions,Like I said Crooks watch out for each other!

Jan 15 12:42 PM

[notsosmart:]

of course they knew.its all ponzi.& now its musical chairs from one firm to the next.the bigger the crook the better the new position.billions paid in bonuses with taxpayer money.made-off is a piker compared to wall st & the govt.

Jan 15 02:06 PM