5 Prison Pointers for Bernie Madoff

by: Value Investor

Bernie Madoff was sentenced to 150 years in prison. To send him off, here are a few tips for Madoff on going to prison; bullet points are borrowed from a prison blog Top 10 prison survival:

  1. Keep your mouth shut. Shouldn't be a problem. Madoff ran his scam for years before he was eventually caught. In fact, the folklore around Madoff was that if an investor cornered him at a public function and pushed him to talk about their investment, he would pick up the phone and have their investment canceled.
  2. Don't get involved with gambling. Running a ponzi scheme is a lot like gambling - you never know when the house is going to call in your chips. For Madoff, that day came on December 11th 2008 when FBI officers took Madoff into custody. Hopefully he has had his fill of gambling.
  3. Don't borrow unless you can pay back. Not so good with this one. If you borrow in prison, the interest rate is phenomenal and payment means are, well, lets say nontraditional. Madoff has left investors with a whopping 65 Billion dollars in unpaid debt, likely much of it will never be fully recovered.
  4. Develop a skill that is useful to other inmates. I'd recommend teaching United States Fraud laws as I am sure he is well versed with it... now.
  5. Don't be a loner find a group. Bernie has the gift of the gab; the first group he targeted when starting out his scam were people from the New York Jewish community. He probably won't find a huge population of older Jewish men in prison, or really want them to have his back though.

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