Bernard Madoff


Bernard Lawrence “Bernie” Madoff is an American
convicted of fraud and a former stockbroker, investment advisor, and financier. He is the former non-executive chairman of
the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered
to be the largest financial fraud in U.S. history. Madoff founded the Wall Street firm Bernard
L. Madoff Investment Securities LLC in 1960, and was its chairman until his arrest on December
11, 2008. The firm was one of the top market maker businesses
on Wall Street, which bypassed “specialist” firms by directly executing orders over the
counter from retail brokers. He employed at the firm his brother Peter,
as Senior Managing Director and Chief Compliance Officer; Peter’s daughter Shana Madoff, as
the firm’s rules and compliance officer and attorney; and his sons Andrew and Mark. Peter has since been sentenced to 10 years
in prison and Mark committed suicide by hanging exactly two years after his father’s arrest. On December 10, 2008, 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, and quoted him as describing it as “one big lie”. The following day, FBI agents arrested Madoff
and charged him with one count of securities fraud. The U.S. Securities and Exchange Commission
had previously conducted investigations into Madoff’s business practices, but had not uncovered
the massive fraud. On March 12, 2009, Madoff pleaded guilty to
11 federal felonies and admitted to turning his wealth management business into a massive
Ponzi scheme that defrauded thousands of investors of billions of dollars. Madoff said he began the Ponzi scheme in the
early 1990s. However, federal investigators believe the
fraud began as early as the mid-1980s and may have begun as far back as the 1970s, and
those charged with recovering the missing money believe the investment operation may
never have been legitimate. The amount missing from client accounts, including
fabricated gains, was almost $65 billion. The court-appointed trustee estimated actual
losses to investors of $18 billion. On June 29, 2009, Madoff was sentenced to
150 years in prison, the maximum allowed. Early life
Madoff was born on April 29, 1938, in Queens, New York City, New York, the son of Jewish
parents Sylvia, a homemaker, and Ralph Madoff, a plumber and stockbroker. Madoff’s grandparents were emigrants from
Poland, Romania and Austria. He is the second of three children; his siblings
are Sondra and Peter. Madoff graduated from Far Rockaway High School
in 1956. He attended the University of Alabama for
one year, where he became a brother of the Tau Chapter of the Sigma Alpha Mu fraternity,
then transferred to and graduated from Hofstra University in 1960 with a Bachelor of Arts
in political science. Madoff briefly attended Brooklyn Law School,
but founded the Wall Street firm Bernard L. Madoff Investment Securities LLC and remained
working for his own company. Career
Madoff was chairman of Bernard L. Madoff Investment Securities LLC from its startup in 1960 until
his arrest on December 11, 2008. The firm started as a penny stock trader with
$5,000 that Madoff earned from working as a lifeguard and sprinkler installer. He further secured a loan of $50,000 from
his father-in-law which he also used to set up Bernard L. Madoff Investment Securities
LLC. His business grew with the assistance of his
father-in-law, accountant Saul Alpern, who referred a circle of friends and their families. Initially, the firm made markets via the National
Quotation Bureau’s Pink Sheets. In order to compete with firms that were members
of the New York Stock Exchange trading on the stock exchange’s floor, his firm began
using innovative computer information technology to disseminate its quotes. After a trial run, the technology that the
firm helped to develop became the NASDAQ. The firm functioned as a third-market provider,
bypassing exchange specialist firms by directly executing orders over the counter from retail
brokers. At one point, Madoff Securities was the largest
market maker at the NASDAQ, and in 2008 was the sixth-largest market maker on Wall Street. The firm also had an investment management
and advisory division, which it did not publicize, that was the focus of the fraud investigation. Madoff was “the first prominent practitioner”
of payment for order flow, in which a dealer pays a broker for the right to execute a customer’s
order. This has been called a “legal kickback.” Some academics have questioned the ethics
of these payments. Madoff has argued that these payments did
not alter the price that the customer received. He viewed the payments as a normal business
practice: If your girlfriend goes to buy stockings at
a supermarket, the racks that display those stockings are usually paid for by the company
that manufactured the stockings. Order flow is an issue that attracted a lot
of attention but is grossly overrated. Madoff was active in the National Association
of Securities Dealers, a self-regulatory securities industry organization and has served as the
Chairman of the Board of Directors and on the Board of Governors of the NASD. Government access
Since 1991, Madoff and his wife have contributed about $240,000 to federal candidates, parties
and committees, including $25,000 a year from 2005 through 2008 to the Democratic Senatorial
Campaign Committee. The Committee returned $100,000 of the Madoffs’
contributions to Irving Picard, the bankruptcy trustee who oversees all claims. Senator Charles E. Schumer returned almost
$30,000 received from Madoff and his relatives to the trustee, and Senator Christopher J.
Dodd donated $1,500 to the Elie Wiesel Foundation for Humanity, a Madoff victim. Members of the Madoff family have served as
leaders of the Securities Industry and Financial Markets Association, the primary securities
industry organization. Bernard Madoff served on the Board of Directors
of the Securities Industry Association, a precursor of SIFMA, and was Chairman of its
Trading Committee. He was also a founding board member of the
DTCC subsidiary in London, the International Securities Clearing Corporation. Madoff’s brother Peter then served two terms
as a member of SIFMA’s Board of Directors. He and Andrew received awards from SIFMA in
2008 for “extraordinary leadership and service”. He resigned from the Board of Directors of
SIFMA in December 2008, as news of the Ponzi scheme broke. From 2000 until 2008, the Madoffs brothers
donated $56,000 directly to SIFMA, and paid additional money as sponsors of industry meetings. Bernard Madoff’s niece Shana Madoff was a
member of the Executive Committee of SIFMA’s Compliance & Legal Division, but resigned
shortly after the arrest. Madoff’s name came up in a fraud investigation
for the first time in 1992, when two people complained to the SEC about investments they
made with a firm called Avellino & Bienes. Madoff returned the money to investors and
the SEC closed the case. In 2004, Genevievette Walker-Lightfoot, a
lawyer in the SEC’s Office of Compliance Inspections and Examinations, informed her supervisor
branch chief Mark Donohue that her review of Madoff found numerous inconsistencies,
and recommended further questioning. However, she was told by Donohue and his boss
Eric Swanson to stop work on the Madoff investigation, send them her work results, and instead investigate
the mutual fund industry. Swanson, Assistant Director of the SEC’s OCIE,
had met Shana Madoff in 2003 while investigating her uncle Bernie Madoff and his firm. The investigation concluded in 2005, in 2006
Swanson left the SEC and became engaged to Shana Madoff, and in 2007 the two married. A spokesman for Swanson, who has left the
SEC, said he “did not participate in any inquiry of Bernard Madoff Securities or its affiliates
while involved in a relationship” with Shana Madoff. While awaiting sentencing, Madoff met with
the SEC’s Inspector General, H. David Kotz, who conducted an investigation into how regulators
failed to detect the fraud despite numerous red flags. Madoff said he could have been caught in 2003,
but bumbling investigators acted like “Lt. Colombo” and never asked the right questions: I was astonished. They never even looked at my stock records. If investigators had checked with The Depository
Trust Company, a central securities depository, it would’ve been easy for them to see. If you’re looking at a Ponzi scheme, it’s
the first thing you do. Madoff said in the June 17, 2009, interview
that SEC Chairman Mary Schapiro was a “dear friend”, and SEC Commissioner Elisse Walter
was a “terrific lady” whom he knew “pretty well”. After Madoff’s arrest, the SEC was criticized
for its lack of financial expertise and lack of due diligence, despite having received
complaints from Harry Markopolos and others for almost a decade. The SEC’s Inspector General, Kotz, found that
since 1992, there were six botched investigations of Madoff by the SEC, either through incompetent
staff work or neglecting allegations of financial experts and whistle-blowers. At least some of the SEC investigators doubted
whether Madoff was even trading. Because of concerns, raised by David P. Weber,
former SEC Chief Investigator, of improper conduct by SEC Inspector General H. David
Kotz in the Madoff investigation, Inspector General David C. Williams of the U.S. Postal
Service was brought in to conduct an independent, outside review of Kotz’s alleged improper
conduct. The Williams Report questioned Kotz’s work
on the Madoff investigation, because Kotz was a “very good friend” with Markopolos. Although investigators were not able to determine
when Kotz and Markopolos became friends, the report concluded that it would have violated
U.S. ethics rules if their relationship began before or during Kotz’s investigation of
Madoff. Investment scandal Concerns about Madoff’s business surfaced
as early as 1999, when financial analyst Harry Markopolos informed the SEC that he believed
it was legally and mathematically impossible to achieve the gains Madoff claimed to deliver. According to Markopolos, he knew within five
minutes that Madoff’s numbers did not add up, and it took four hours of failed attempts
to replicate them to conclude that Madoff was a fraud. He was ignored by the Boston SEC in 2000 and
2001, as well as by Meaghan Cheung at the New York SEC in 2005 and 2007 when he presented
further evidence. He has since published a book, No One Would
Listen, about the frustrating efforts he and his team made over a ten-year period to alert
the government, the industry, and the press about the Madoff fraud. Although Madoff’s wealth management business
ultimately grew into a multi-billion-dollar operation, none of the major derivatives firms
traded with him because they did not believe his numbers were real. None of the major Wall Street firms invested
with him either, and several high-ranking executives at those firms suspected he was
not legitimate. Others also contended it was inconceivable
that the growing volume of Madoff accounts could be competently and legitimately serviced
by his documented accounting/auditing firm, a three-person firm with only one active accountant. The Federal Bureau of Investigation complaint
says that during the first week of December 2008, Madoff confided to a senior employee,
identified by Bloomberg News as one of his sons, that he said he was struggling to meet
$7 billion in redemptions. According to the sons, Madoff told Mark Madoff
on December 9 that he planned to pay out $173 million in bonuses two months early. Madoff said that “he had recently made profits
through business operations, and that now was a good time to distribute it.” Mark told Andrew Madoff, and the next morning
they went to their father’s apartment and asked him how he could pay bonuses to his
staff if he was having trouble paying clients. With Ruth Madoff nearby, Madoff told them
he was “finished,” that he had “absolutely nothing” left, that his investment fund was
“just one big lie” and “basically, a giant Ponzi scheme.” According to their attorney, Madoff’s sons
then reported their father to federal authorities. On December 11, 2008, he was arrested and
charged with securities fraud. Madoff posted $10 million bail in December
2008 and remained under 24-hour monitoring and house arrest in his Upper East Side penthouse
apartment until March 12, 2009, when Judge Denny Chin revoked his bail and remanded him
to the Metropolitan Correctional Center. Chin claimed Madoff was a flight risk, because
of his age, his wealth, and the prospect of spending the rest of his life in prison. Prosecutors filed two asset forfeiture pleadings
which include lists of valuable real and personal property as well as financial interests and
entities. Madoff’s lawyer, Ira Sorkin, filed an appeal,
and prosecutors responded with a notice of opposition. On March 20, 2009, an appellate court denied
Madoff’s request to be released from jail and returned to home confinement until his
sentencing on June 29, 2009. On June 22, 2009, Sorkin hand-delivered a
customary pre-sentencing letter to the judge requesting a sentence of 12 years, because
of tables cited from the Social Security Administration that his life span is predicted to be 13 years. On June 26, 2009, Chin ordered Madoff to forfeit
$170 million in assets. Prosecutors asked Chin to sentence Madoff
to the maximum 150 years in prison. Bankruptcy Trustee Irving Picard indicated
that “Mr. Madoff has not provided meaningful cooperation or assistance.” In settlement with federal prosecutors, Madoff’s
wife Ruth agreed to forfeit her claim to US$85 million in assets, leaving her with $2.5 million
in cash. The order allowed the SEC and Court appointed
trustee Irving Picard to pursue Ruth Madoff’s funds. Massachusetts regulators also accused her
of withdrawing $15 million from company-related accounts shortly before he confessed. In February 2009, Madoff reached an agreement
with the SEC, banning him from the securities industry for life. Picard has sued Madoff’s sons, Mark and Andrew,
his brother Peter, and Peter’s daughter, Shana, for negligence and breach of fiduciary duty,
for $198 million. The defendants had received over $80 million
in compensation since 2001 and “used the bank account at BLMIS like a personal piggy bank.” The trustee believes they knew about the fraud
because of their personal investments in the scheme, the longevity of the fraud, and because
of their work at the company including roles as corporate and compliance officers. Since 1995, Peter Madoff had invested only
$32,146, but withdrew over $16 million. Mark and Andrew Madoff withdrew more than
$35 million from a small original investment. Picard asserts Mark Madoff conspired with
his father to hide $25 million in unknown Swiss accounts. Mechanics of the fraud
According to the SEC indictment against Annette Bongiorno and Joann Crupi, two back office
workers who worked for Madoff, they created false trading reports based on the returns
that Madoff ordered for each customer. For example, once Madoff determined a customer’s
return, one of the back office workers would enter a false trade from a previous date and
then enter a false closing trade in the amount of the required profit, according to the indictment. Prosecutors allege that Bongiorno used a computer
program specially designed to backdate trades and manipulate account statements. They quote her as writing to a manager in
the early 1990s “I need the ability to give any settlement date I want.” In some cases returns were allegedly determined
before the account was even opened. Madoff admitted during his March 2009 guilty
plea that the essence of his scheme was to deposit client money into a Chase account,
rather than invest it and generate steady returns as clients had believed. When clients wanted their money, “I used the
money in the Chase Manhattan bank account that belonged to them or other clients to
pay the requested funds,” he told the court. Affinity fraud
Affected institutions considered victims of affinity fraud include Hadassah, the Women’s
Zionist Organization of America, the Elie Wiesel Foundation and Steven Spielberg’s Wunderkinder
Foundation. Jewish federations and hospitals have lost
millions of dollars, forcing some organizations to close. The Lappin Foundation, for instance, was forced
to temporarily close because it had invested its funds with Madoff. Madoff also dealt with James Harris Simons. Size of loss to investors
David Sheehan, chief counsel to trustee Picard, stated on September 27, 2009, that about $36
billion was invested into the scam, returning $18 billion to investors, with $18 billion
missing. About half of Madoff’s investors were “net
winners,” earning more than their investment. The withdrawal amounts in the final six years
were subject to “clawback” lawsuits. In a May 4, 2011, statement, trustee Picard
said that the total fictitious amounts owed to customers were $57 billion, of which $17.3
billion was actually invested by the customers. $7.6 billion has been recovered, but pending
lawsuits, only $2.6 billion is available to repay victims. If all the recovered funds are returned to
victims, their net loss would be just under $10 billion. The Internal Revenue Service ruled that investors’
capital loss in this and other fraudulent investment schemes will be treated as a business
loss, thereby allowing the victims to claim them as net operating losses to reduce tax
liability. The size of the fraud was often stated as
$65 billion early in the investigation, but former SEC Chairman Harvey Pitt estimated
the actual net fraud to be between $10 and $17 billion. Erin Arvedlund, who publicly questioned Madoff’s
reported investment performance in 2001, stated that the actual amount of the fraud might
never be known, but was likely between $12 and $20 billion. Jeffry Picower, rather than Madoff, appears
to have been the largest beneficiary of Madoff’s Ponzi scheme, and his estate settled the claims
against it for $7.2 billion. J.P. Morgan Chase & Co. also benefited from
the scheme—through interest and fees charged. Trustee Irving Picard sought the return of
$1 billion and damages of $5.4 billion. Morgan eventually settled for at least $1.7
billion. According to the same lawsuit, New York Mets
owners Fred Wilpon and Saul Katz and associated individuals and firms, received $300 million
from the scheme. Wilpon and Katz “categorically reject” the
charges. Plea, sentencing, and prison life
On March 12, 2009, Madoff pled guilty to 11 federal felonies, including securities fraud,
wire fraud, mail fraud, money laundering, making false statements, perjury, theft from
an employee benefit plan, and making false filings with the SEC. The plea was the response to a criminal complaint
filed two days earlier, which stated that over the past 20 years, Madoff had defrauded
his clients of almost $65 billion in the largest Ponzi scheme in history. Madoff insisted he was solely responsible
for the fraud. Madoff did not plea bargain with the government. Rather, he pleaded guilty to all charges. It has been speculated that Madoff pleaded
guilty because he refused to cooperate with the authorities in order to avoid naming any
associates and conspirators who were involved with him in the Ponzi scheme. On November 3, 2009, David Friehling, Madoff’s
accounting front man pleaded guilty to securities fraud, investment adviser fraud, making false
filings to the SEC, and obstructing the IRS. Madoff’s right-hand man, Frank DiPascali pleaded
guilty in August 2009, and is awaiting bail. In his plea allocution, Madoff stated he began
his Ponzi scheme in 1991. He admitted he had never made any legitimate
investments with his clients’ money during this time. Instead, he said, he simply deposited the
money into his personal business account at Chase Manhattan Bank. When his customers asked for withdrawals,
he paid them out of the Chase account—a classic “robbing Peter to pay Paul” scenario. Chase and its successor, JPMorgan Chase, may
have earned as much as $483 million from his bank account. He was committed to satisfying his clients’
expectations of high returns, despite an economic recession. He admitted to false trading activities masked
by foreign transfers and false SEC filings. He stated that he always intended to resume
legitimate trading activity, but it proved “difficult, and ultimately impossible” to
reconcile his client accounts. In the end, Madoff said, he realized that
his scam would eventually be exposed. On June 29, 2009, Chin sentenced Madoff to
the maximum sentence of 150 years in federal prison. Madoff’s lawyers originally asked the judge
to impose a sentence of 7 years, and later requested that the sentence be 12 years, because
of Madoff’s advanced age of 71 and his life expectancy. Madoff apologized to his victims, saying, I have left a legacy of shame, as some of
my victims have pointed out, to my family and my grandchildren. This is something I will live in for the rest
of my life. I’m sorry. He added, “I know that doesn’t help you,”
after his victims recommended to the judge that he receive a life sentence. Chin had not received any mitigating letters
from friends or family testifying to Madoff’s good deeds. “The absence of such support is telling,”
he said. Chin also said that Madoff had not been forthcoming
about his crimes. “I have a sense Mr. Madoff has not done all
that he could do or told all that he knows,” said Chin, calling the fraud “extraordinarily
evil,” “unprecedented” and “staggering,” and that the sentence would deter others from
committing similar frauds. Chin also agreed with prosecutors’ contention
that the fraud began at some point in the 1980s. He also noted that Madoff’s crimes were “off
the charts” since federal sentencing guidelines for fraud only go up to $400 million in losses. Ruth did not attend court but issued a statement,
saying “I am breaking my silence now because my reluctance to speak has been interpreted
as indifference or lack of sympathy for the victims of my husband Bernie’s crime, which
is exactly the opposite of the truth. I am embarrassed and ashamed. Like everyone else, I feel betrayed and confused. The man who committed this horrible fraud
is not the man whom I have known for all these years.” Incarceration Madoff’s attorney asked the judge to recommend
that the Federal Bureau of Prisons place Madoff in the Federal Correctional Institution, Otisville,
which is located 70 miles from Manhattan. The judge, however, only recommended that
Madoff be sent to a facility in the Northeast United States. Madoff was transferred to the Federal Correctional
Institution Butner Medium near Butner, North Carolina, about 45 miles northwest of Raleigh;
he is Bureau of Prisons Register #61727-054. Jeff Gammage of the Philadelphia Inquirer
said “Madoff’s heavy sentence likely determined his fate.” Madoff’s projected release date is November
14, 2139. The release date, described as “academic”
in Madoff’s case because he would have to live to the age of 201, reflects a reduction
for good behavior. On October 13, 2009, it was reported that
Madoff experienced his first prison yard fight with another senior citizen inmate. When he began his sentence, Madoff’s stress
levels were so severe that he broke out in hives and other skin maladies soon after. On December 18, 2009, Madoff was moved to
Duke University Medical Center in Durham, North Carolina, and was treated for several
facial injuries. A former inmate later claimed that the injuries
were received during an alleged altercation with another inmate. Other news reports described Madoff’s injuries
as more serious and including “facial fractures, broken ribs, and a collapsed lung”. The Federal Bureau of Prisons said Madoff
signed an affidavit on December 24, 2009, which indicated that he had not been assaulted
and that he had been admitted to the hospital for hypertension. In his letter to his daughter-in-law, Madoff
said that he was being treated in prison like a “Mafia don”. They call me either Uncle Bernie or Mr. Madoff. I can’t walk anywhere without someone shouting
their greetings and encouragement, to keep my spirit up. It’s really quite sweet, how concerned everyone
is about my well being, including the staff … It’s much safer here than walking the
streets of New York. Personal life
On November 28, 1959, Madoff married Ruth Alpern, whom he had met while attending Far
Rockaway High School. The two eventually began dating. Ruth graduated high school in 1958 and earned
her bachelor’s degree at Queens College, she was employed at the stock market in Manhattan
before working in Madoff’s firm, and she founded the Madoff Charitable Foundation. Bernard and Ruth Madoff had two sons: Mark,
a 1986 graduate of the University of Michigan, and Andrew, a 1988 graduate of University
of Pennsylvania’s Wharton Business School. Both later worked in the trading section alongside
paternal cousin Charles Weiner. Several family members worked for Madoff. His younger brother, Peter, an attorney, was
Senior Managing Director and Chief Compliance Officer, and Peter’s daughter, Shana Madoff,
also an attorney, was the compliance attorney. On the morning of December 11, 2010—exactly
two years after Bernard’s arrest—his son Mark was found dead in his New York City apartment. The city medical examiner ruled the cause
of death as suicide by hanging. Mark Madoff owed his parents $22 million,
and Andrew Madoff owes $9.5 million. There were two loans in 2008 from Bernard
Madoff to Andrew Madoff: $4.3 million on October 6, and $250,000 on September 21. Andrew owns a Manhattan apartment and a home
in Greenwich, Connecticut, as did his brother prior to Mark’s death. Following a divorce from his first wife in
2000, Mark withdrew money from an account. Both sons used outside investment firms to
run their own private philanthropic foundations. In March 2003, Andrew Madoff was diagnosed
with mantle cell lymphoma and eventually returned to work. He was named Chairman of the Lymphoma Research
Foundation in January 2008, but resigned shortly after his father’s arrest. Peter and Andrew Madoff remain the targets
of a tax fraud investigation by federal prosecutors, according to The Wall Street Journal. David Friehling, Bernard Madoff’s tax accountant,
who pleaded guilty in a related case, is reportedly assisting the investigation. According to a civil lawsuit filed in October
2009, trustee Irving Picard alleges that Peter Madoff deposited $32,146 into his Madoff accounts
and withdrew over $16 million; Andrew deposited almost $1 million into his accounts and withdrew
$17 million; Mark deposited $745,482 and withdrew $18.1 million. Madoff lived in Roslyn, New York, in a ranch
house through the 1970s. After 1980 he owned an ocean-front residence
in Montauk. His primary residence was on Manhattan’s Upper
East Side, and he was listed as chairman of the building’s co-op board. He also owned a home in France and a mansion
in Palm Beach, Florida, where he was a member of the Palm Beach Country Club. Madoff owned a 55-foot sportfishing yacht
named Bull. All three homes were auctioned by the U.S.
Marshals Service in September 2009. Sheryl Weinstein, former chief financial officer
of Hadassah, disclosed in a book written to recoup her investment losses that she and
Madoff had an affair more than 20 years ago. As of 1997, when Weinstein left, Hadassah
had invested a total of $40 million. By the end of 2008, Hadassah had withdrawn
$140 million from an account valued at $90 million. At the victim impact sentencing hearing, Weinstein
testified, calling him a “beast”. According to a March 13, 2009, filing by Madoff,
he and his wife were worth up to $126 million, plus an estimated $700 million for the value
of his business interest in Bernard L. Madoff Investment Securities LLC. Other major assets included securities, cash,
half-interest in BLM Air Charter, a 2006 Leopard yacht, jewelry, Manhattan apartment, Montauk
home, Palm Beach home, Cap d’ Antibes, France property, and furniture, household goods,
and art. During a 2011 interview on CBS, Ruth Madoff
claimed she and her husband had attempted suicide after his fraud was exposed, both
taking “a bunch of pills” in a suicide pact on Christmas Eve 2008. In November 2011, former Madoff employee David
Kugel pleaded guilty to charges that arose out of the Ponzi scheme. He admitted having helped Madoff create a
phony paper trail, the false account statements that were supplied to clients. Bernie Madoff suffered a heart attack in December
2013, and reportedly suffers from end-stage renal disease. According to CBS New York and other news sources,
Madoff told CNBC in an e-mail that he has kidney cancer. Philanthropy and other activities
Madoff was a prominent philanthropist, who served on boards of nonprofit institutions,
many of which entrusted his firm with their endowments. The collapse and freeze of his personal assets
and those of his firm affected businesses, charities, and foundations around the world,
including the Chais Family Foundation, the Robert I. Lappin Charitable Foundation, the
Picower Foundation, and the JEHT Foundation which were forced to close. Madoff donated approximately $6 million to
lymphoma research after his son Andrew was diagnosed with the disease. He and his wife gave over $230,000 to political
causes since 1991, with the bulk going to the Democratic Party. Madoff served as the Chairman of the Board
of Directors of the Sy Syms School of Business at Yeshiva University, and as Treasurer of
its Board of Trustees. He resigned his position at Yeshiva University
after his arrest. Madoff also served on the Board of New York
City Center, a member of New York City’s Cultural Institutions Group. He served on the executive council of the
Wall Street division of the UJA Foundation of New York which declined to invest funds
with him because of the conflict of interest. Madoff undertook charity work for the Gift
of Life Bone Marrow Foundation and made philanthropic gifts through the Madoff Family Foundation,
a $19 million private foundation, which he managed along with his wife. They donated money to hospitals and theaters. The foundation has also contributed to many
educational, cultural, and health charities, including those later forced to close because
of Madoff’s fraud. After Madoff’s arrest, the assets of the Madoff
Family Foundation were frozen by a federal court. In the media
HBO is making a movie about Madoff in which actor Robert De Niro is set to star, based
on the best-selling book The Wizard of Lies, by Diana B. Henriques. A documentary, Chasing Madoff, describing
Harry Markopolos’ efforts to unmask the fraud, was released in August 2011. Woody Allen’s 2013 film Blue Jasmine portrays
a fictional couple involved in a similar scandal. In God We Trust, a documentary about Eleanor
Squillari, Bernie Madoff’s secretary for 25 years and her search for the truth about the
fraud See also Affinity fraud
Financial crisis of 2007–2010 List of investors in Bernard L. Madoff Investment
Securities Participants in the Madoff investment scandal
Recovery of funds from the Madoff investment scandal
White-collar crime References External links
Criminal complaint, transcripts of hearings and other documents from the United States
Department of Justice Bernard L. Madoff Investment Securities website
at the Wayback Machine Madoff’s current location within the Bureau
of Prisons system The Independent: Madoff reveals his suffering
The Face That Launched A Thousand Lawsuits – Madoff’s Legacy

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