Fraudster Madoff gets 150 years

MONDAY, JUNE 29, 2009
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Page last updated at 17:12 GMT, Monday, 29 June 2009 18:12 UK

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by Judith Stein, Financial Analyst for biodun-iginla@bbcnews.com

Madoff apologised for his crimes after hearing from his victims Bernard Madoff has been given the maximum prison sentence of 150 years for masterminding a massive fraud that robbed investors of $65bn (£40bn). The sentence, which means Madoff will spend the rest of his life in jail, was greeted with cheers and applause in the packed courtroom.
US District Judge Denny Chin said he wanted to send a message that Madoff's crimes were "extraordinarily evil".
Madoff's lawyer had sought a more lenient sentence of 12 years.
Judge Chin gave Madoff the maximum sentence on all 11 charges, which included securities fraud and money laundering.
"Here the message must be sent that Mr Madoff's crimes were extraordinarily evil and that this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll," Judge Chin said.
He said "the breach of trust was massive" and pointed out that no friends, family or other supporters had submitted any letters on Mr Madoff's behalf.
Bernard Madoff's wife Ruth said in a statement released after the hearing that she felt "betrayed and confused".
"The man who committed this horrible fraud is not the man whom I have known for all these years," she said.
'Legacy of shame'
Before the sentencing, Madoff apologised for the "legacy of shame" he had brought on his family and the industry.
I think it was certainly a justified sentence Judith Welling, Madoff victim In quotes: Victims speak in court Suicide prompted by Madoff scandal Madoff victims lose life savings "I'm responsible for a great deal of suffering and pain, I understand that," said Madoff, who will spend the rest of his life in prison.
He turned directly to those in court who had been affected and said he was sorry.
A number of them had earlier given emotional statements. One had broken down in tears during their testimony.
"Life has been a living hell. It feels like the nightmare we can't wake from," said Carla Hirshhorn.
"May your jail cell be your coffin," Michael Schwartz told Madoff.
The BBC's North America Business Correspondent Michelle Fleury told me that the length of the sentence was unexpected.
Victims would be pleased, she said, but this wasn't the end for them as they are still trying to recover some of their money.
"I think it was certainly a justified sentence," said Judith Welling, who lost $2.5m along with her husband.
"He's trying to send a message to the world that this sort of behaviour will not be tolerated," she added.
Thousands defrauded
Bernard Madoff admitted defrauding thousands of investors in a Ponzi scheme which he said had been running since the early 1990s.

Victims suffer financial hardship Madoff started his financial career aged 22 with $5,000 from money made from summer holiday jobs such as working as a garden sprinkler installer in New York.
He then set up Bernard L Madoff Investment Securities in 1960.
His firm became one of the largest market-makers - matching buyers and sellers of stocks - and Madoff served as chairman of the Nasdaq stock exchange.
Madoff's firm was investigated eight times by the US Securities and Exchange Commission over the past 16 years, because it made exceptional returns.

WHAT IS A PONZI SCHEME? A fraudulent investment scheme paying investors from money paid in by other investors rather than real profits Named after Charles Ponzi who notoriously used the technique in the United States in the 1920s Differs from pyramid selling in that individuals all tend to invest with the same person But it was the global recession which effectively prompted Madoff's demise as investors, hit by the downturn, tried to withdraw about $7bn from his funds and he could not find the money to cover it.
The list of Madoff's victims includes film director Steven SpielbergSteven Spielberg's charitable foundation, Wunderkinder.
UK banks were also among the victims with HSBC Holdings saying it had exposure of around $1bn. Other corporate victims were Royal Bank of Scotland and Man Group and Japan's Nomura Holdings.
But it is not just the elite and large firms who were victims of the fraud.
School teachers, farmers, mechanics and many others have also lost money.

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Name Your E-mail address Town & Country Phone number (optional): Comments POSTED BY BIODUNIGINLA AT 6:37 PM LABELS: BBC NEWS. JUDITH STEIN, BERNIE MADOFF, BIODUN IGINLA