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Madoff Employee Breaks Silence
In a Daily Beast exclusive, one of the fraudster’s employees tells Lucinda Franks that the supposedly legitimate brokerage operations were in fact just money-losing fronts for the fraudster's scheme. Plus, what Madoff’s sons told staff the day after Bernie’s arrest, trips to the company’s secretive 17th floor, Bernie’s obsession with the color black and employee neatness, the roles of other family members, and visits to the founder’s Montauk home.
An employee of Bernard Madoff’s legitmate brokerage operations, which were described by the fraudster in his plea agreement as being “successful and profitable,” has told The Daily Beast that they were in fact money-losers that acted as a front for his Ponzi scheme.
He said that these businesses, the proprietary and market-making arms on the 18th and 19th floors of Madoff Securities, were designed to lure investors in, especially highly placed figures in society, and to fool the SEC into thinking that he had a large and impressive galaxy of businesses.
But behind the façade, these businesses were a shambles. They were excessively staffed with grossly overpaid people, and run with marked inefficiency, he said.
The employee, who did not want to be identified because of possible lawsuits or threats by victims, was a member of an elite group that designed sophisticated computer-trading programs. His identity was verified by consulting the Madoff employment roster, where he was listed. He also has an employment confirmation letter and a letter of reference from the Madoff firm.
His description of how the legitimate arms of Madoff Securities were run sounds like a skit out of Monty Python
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An employee of Bernard Madoff’s legitmate brokerage operations, which were described by the fraudster in his plea agreement as being “successful and profitable,” has told The Daily Beast that they were in fact money-losers that acted as a front for his Ponzi scheme.
He said that these businesses, the proprietary and market-making arms on the 18th and 19th floors of Madoff Securities, were designed to lure investors in, especially highly placed figures in society, and to fool the SEC into thinking that he had a large and impressive galaxy of businesses.
But behind the façade, these businesses were a shambles. They were excessively staffed with grossly overpaid people, and run with marked inefficiency, he said.
“I keep thinking about the 90-year-old man who lost even his house and is bagging groceries. Then I think of the fact that I may have gotten paid with his money."
The employee, who did not want to be identified because of possible lawsuits or threats by victims, was a member of an elite group that designed sophisticated computer-trading programs. His identity was verified by consulting the Madoff employment roster, where he was listed. He also has an employment confirmation letter and a letter of reference from the Madoff firm.
His description of how the legitimate arms of Madoff Securities were run sounds like a skit out of Monty Python
.
.
.
.
.
.
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