The fall of Bernard Madoff and the beginning of the end of Cargo Cult Multiculturalis

http://nypost.com/2015/05/19/madoff-employee-who-faked-documents-gets-off-scot-free-2/

Madoff employee who faked documents gets off scot-free
By Josh Saul
May 19, 2015 | 5:26pm

Bernie Madoff’s ex-controller waltzed out of court a free woman Tuesday after a judge gave her a no-jail sentence – even though the Queens-born scammer admitted to falsifying documents and lying to US regulators as Madoff pulled off the biggest financial scam in history. :mad:

“How could I have allowed myself to be pulled into Bernie’s excuses, when I knew they couldn’t be true?” Enrica Cotellessa-Pitz whined in a strong Queens accent before she was sentenced.

“At the time I never imagined that my good fortune was at the expense of others. This shame will stay with me for the rest of my life.”

Manhattan federal court judge Laura Swain said she was giving the slap-on-the-wrist sentence because Cotellessa-Pitz had cooperated with prosecutors as they built their case against her co-workers.

“Ms. Cotellessa-Pitz knowingly falsified books and records [but] there is no evidence that she knew herself that Madoff Securities was a Ponzi scheme,” Swain said.

She even became the resident “unofficial Madoff Securities hand-writing expert,” identifying for investigators which Madoff employees had written on “decades-old documents,” her defense attorney said.

Cotellessa-Pitz – who walked out of court sporting a Michael Kors handbag and a big shiny stone on her ring finger – was also ordered to pay $97 billion in forfeitures to Madoff’s victims :rolleyes:, leading a bystander to quip, “If she wins the lottery, she doesn’t get to keep it.”

She pleaded guilty in 2011 and testified at her co-workers’ trials, even revealing in 2013 that Madoff himself once chewed her out in 1979 for dumping former Madoff lieutenant Frank DiPascali Jr. — who also wound up taking a fall in the epic fraud scheme.

Cotellessa-Pitz began working for Madoff in 1978 and was responsible for doing his books each month.

Madoff pleaded guilty to running the largest Ponzi scheme ever, over the course of 25 years, and was sentenced in 2009 to 150 years in prison. Investors lost about $20 billion in principal.
 
http://nypost.com/2015/07/05/heiress-wants-7-4m-from-irs-over-madoff-swindle/

Heiress wants $7.4M from IRS over Madoff swindle
By Kathianne Boniello
July 5, 2015 | 10:34am

The estate of a real-estate heiress swindled by Bernie Madoff is trying to recoup $7.4 million from the IRS, claiming the Ponzi schemer filed a false tax return for the woman to keep his scam secret.

Gladys C. Luria, whose father, Henry Claman, built the Times Square Hotel in 1922, was supposedly worth $32 million when she died in 2005 at age 96, according to tax returns filed by Madoff, who is now serving a 150-year sentence for fraud.

But those tax returns were bogus, because Madoff had cheated Luria, along with thousands of others, in a historic Ponzi scheme, according to a Manhattan federal lawsuit filed against the US government by Luria’s estate.

“The value of the accounts at the date of [her] death was in fact zero, because the accounts had no securities in them . . . Madoff . . . knowingly filed a false return to cover up his criminal Ponzi scheme,” according to court papers.

Madoff’s crimes didn’t come to light until his arrest in 2008.

Luria was a Madoff client for so long she made Bernie and his brother, Peter, co-executors of her estate.

The family paid $10 million in estate taxes upon Luria’s death based upon the false return, an overpayment of $7.4 million, the estate alleges in its legal filing.

The IRS declined to comment.
 
http://nypost.com/2015/08/05/madoffs-fragile-accomplice-gets-just-six-months-in-jail/

Madoff’s ‘fragile’ accomplice gets just six months in jail
By Josh Saul
August 5, 2015 | 4:58pm

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Irwin Lipkin (inset) one of Bernard Madoff's longest-serving employees, covers his face as he is pushed in a wheelchair by his son as they leave the courthouse.
Photo: Reuters (2)


A federal judge took pity on the last of Bernie Madoff’s accomplices to be sentenced, handing down a sentence of just six months behind bars and 18 months of home detention Wednesday to the physically infirm Irwin Lipkin.

Lipkin, 77, was the first non-family member to be hired by Madoff, in 1964, and pleaded guilty in 2012 to filing bogus financial reports during his years as the firm’s controller.

“The fact that Mr. Madoff was well-liked and loved on the Street led me to believe that everything he did was doing was absolutely on the up-and-up,” Lipkin said in Manhattan federal court, adding that he lost a lot of his own money that he invested with his boss.

“If I was so smart, why would I have given my own money to Madoff, who turned out to be the biggest thief on Wall Street? That makes no sense.”

Lipkin could have been sentenced to 10 years in prison, but judge Laura Swain called him “fragile” and said that his medical condition warranted a significant reduction in his sentence.

He sat in a wheelchair during the sentencing and didn’t stand when he addressed the judge. He suffers from a urinary tract infection, a heart weakened by a heart attack, and diabetes.

The New Jersey man was the last of 15 people who either pleaded guilty or were convicted in Madoff’s Ponzi scheme.

Madoff pleaded guilty to masterminding the fraud and is serving a 15-year sentence.
 
http://nypost.com/2015/09/06/authorities-find-360k-in-madoff-jewelry-will-sell-for-victim-fund/

Authorities find $360K in Madoff jewelry, will sell for victim fund
By Isabel Vincent and Melissa Klein
September 6, 2015 | 5:07am

It’s been seven years since Ponzi schemer Bernie Madoff was arrested, but investigators are still finding his money.

Authorities are poised to sell two 1940s Patek Philippe gold watches, a gold money clip from Tiffany and a diamond tennis bracelet worth some $360,000, among other baubles that were only recently discovered.

And The Post last week alerted the feds to the fact that Madoff and wife Ruth were both on JPMorgan Chase bank’s list of people due unclaimed funds.

Prosecutors were unaware of the money, which totals about $4,000, according to a source familiar with the situation.

A spokesman for US Attorney Preet Bharara said the office was looking into “this new information” *after The Post asked about the unclaimed cash.

The account is not the only Madoff money out there, which could go to victims of his $65 billion Ponzi scheme.

Bernard Madoff’s name also appears on the state comptroller’s roster of unclaimed funds. He is listed as the owner of cash dividends from the Marathon Oil Corp. along with his niece, Shana Madoff, who worked for her uncle’s corrupt firm, and Bernie Madoff’s accountant Paul Konigsberg, who pleaded guilty in the scheme.

A spokeswoman for the Comptroller’s Office said the US Marshals Service had already put a claim in for Bernard Madoff’s money and that his name would be removed from a public listing of funds.

Since Bernard Madoff’s 2008 arrest, authorities have seized whatever they could from him and his wife, including the couple’s homes, cars, jewelry and clothing down to socks and underwear.

Bharara’s office would not say how it acquired the new jewelry it wants to hawk.

A series of auctions from 2009 to 2011 brought in some $4.5 million. Auction proceeds and court settlements in the Madoff case have amounted to a $4 billion victim’s compensation fund.

Accountants are still tallying how much is due each of the 64,000 claimants from 135 countries.

The distribution of cash is expected to start next year.
 
http://nypost.com/2016/02/02/bernie-madoffs-jewelry-is-up-for-auction/

Bernie Madoff’s jewelry is up for auction
By Reuters
February 2, 2016 | 6:53pm

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Bernie Madoff
Photo: Getty Images


If Bernard Madoff’s massive Ponzi scheme proved one adage correct, it might be this: all that glitters is not gold.

His jewelry, however, is another matter.

The U.S. Marshals Service on Tuesday began auctioning off several high-priced pieces of jewelry seized from Madoff and his wife, Ruth, including a diamond tennis bracelet, a gold money clip and two Patek Philippe watches.

The proceeds from the auction, which ends on Feb. 19, will be added to a restitution fund for Madoff’s victims.

Madoff pleaded guilty in 2009 to masterminding a decades-long fraud at his firm that cost investors an estimated $17 billion in lost principal. The scheme, in which Madoff used money from some investors to pay profits to others, went undetected for decades.

The minimum opening bids for the watches and the bracelet was $21,250, while the money clip, made by Tiffany & Co, started at a relatively affordable $380. The auction is being handled by Texas-based Gaston & Sheehan Auctioneers and is available online at http://www.txauction.com.

U.S. authorities have sold numerous items in the past seized from Madoff and members of his family.

In 2011, 14 pairs of Madoff’s boxer shorts sold for $200. :rolleyes: Auctions in 2009 and 2010 netted million of dollars in total for items such as a 10.5-carat diamond ring, Madoff’s New York Mets jacket and his boats.

Madoff, 77, is serving a 150-year prison sentence. Fourteen others, including Madoff’s brother Peter and several employees of the firm, have been convicted either at trial or via guilty plea in connection with the scheme.
 
http://nypost.com/2016/02/03/bernie-madoff-is-now-a-prison-big-shot/

Bernie Madoff is now a prison big shot
By Michael Starr
February 3, 2016 | 5:15am

ABC’s two-night “Madoff” movie will be followed by “Madoff: After the Fall,” a documentary airing Thursday night at 10 and hosted by ABC News chief investigative correspondent Brian Ross.

“You’re going to learn what Bernie does in prison. He takes turns cleaning cells and working in the commissary. He’s made friends with drug dealers and pedophiles, who make pizzas for him in the microwave,” says Ross, whose 2009 book, “The Madoff Chronicles,” is the basis for ABC’s movie. “Bernie’s sort of made peace with his lot in life. He’s considered a big shot in prison. They go to him for stock tips.

“We also catch up with Ira Sorkin, Madoff’s lawyer, who says he could have ‘gamed’ the system and kept Madoff out of prison for another year, but that Madoff made the decision to get rid of the pressure on [his wife] Ruth and all the cameras by pleading guilty.

“It was an act of love on Madoff’s part, to do this for Ruth.”

Ross says he requested interviews with Bernie and Ruth Madoff for Thursday night’s special (they both declined).

“Bernie is sort of interested [in talking]. He’s trying to do a little [image] rehab,” Ross says. “He’s trying to spin [the Ponzi scheme] like it’s a grander conspiracy. There’s one guy who took out $7.2 billion, Jeffry Picower down in Palm Beach [Florida]. He died in a swimming pool a month after Madoff was arrested and his widow turned all the money in. Madoff says Picower was in on the scheme.

“It’s a Shakespearean drama,” Ross says of the Madoff case, alluding not only to the Ponzi scheme but the deaths of both Madoff sons (Mark, who committed suicide, and Andrew, who died after battling cancer). “Ruth is a sad figure. She tells people she did not go through with the divorce like she said she would. They’re still married and in contact — but Bernie calls.

“She never calls him.”
 
http://pagesix.com/2016/02/03/pothe...funyuns/?_ga=1.216164112.724376420.1409432959

Ruth Madoff turned to pot, Funyuns and expensive wine to cope with Bernie
By Andrew Nodell
February 3, 2016 | 2:34pm

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Ruth Madoff
Photo: AP


As feds investigated Ruth and Bernie Madoff after he pleaded guilty in 2009 to orchestrating a decades-long, $65 billion Ponzi scheme, the disgraced financier’s wife plunged into a spiral of illegal drug use, wandering around her apartment stoned and guzzling thousands of dollars worth of wine from the family’s collection, according to a source.

“Ruth had a network in place to deliver pot up to the apartment,” a source told Page Six of life inside the couple’s posh duplex penthouse at 133 E. 64th St. “If she didn’t have anything to smoke it in, she would order someone out to a bodega for rolling papers because she felt unsafe leaving the apartment herself.”

“After Ruth smoked up on their rooftop patio, she’d walk around munching on bags of Funyuns or other types of chips,” added the source.

It was during this time that Ruth — who married the former NASDAQ chairman in 1959 when she was just 18 — was drowning her sorrows in the couple’s collection of high-end wine.

“Both Ruth and Bernie were drinking thousands and thousands of dollars worth of wine from their cellar almost every night,” explained the source. “I think they figured it was better to drink it than let the government take it away.”

As Ruth, 74, numbed the pain brought on by her husband’s lies, she was also busy preventing the government from confiscating mementos of the family’s life by destroying numerous credit cards, home videos and family photos, the source claimed.

While Bernie was under house arrest inside their $14.5 million Upper East Side apartment for three months, his life was constantly threatened by scorned clients duped out of their life savings.

“Bernie would walk around in a bulletproof vest under his clothes,” said the source. “Everything that went into the apartment would be searched to make sure there wasn’t a bomb — even pizza deliveries.”

The 77-year-old was sentenced to a 150-year prison term in June 2009 and is currently incarcerated at a federal facility in North Carolina.

Following a two-night “Madoff” movie special on ABC this week, a documentary chronicling the former financier’s life behind bars, called “Madoff: After the Fall,” airs Thursday night at 10, hosted by ABC News chief investigative correspondent Brian Ross.

“Bernie’s sort of made peace with his lot in life. He’s considered a big shot in prison. They go to him for stock tips,” said Ross.

Ruth now lives in a 989-square-foot apartment in Connecticut and drives a modest Toyota Prius after the government allowed her to keep a $2.5 million fraction of the billions her husband once had in the bank.

While the Madoffs are still married and in contact, it’s reportedly Bernie who calls — never Ruth.

The former socialite lost son Mark in 2010 to suicide and son Andrew in 2014 to cancer.
 
http://nypost.com/2016/02/16/bernie...his-life-is-full-of-lies-just-the-real-thing/

Bernie Madoff says miniseries about his life is full of lies, just like the real thing
By David K. Li
February 16, 2016 | 5:19pm

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Richard Dreyfuss (right) starring as Bernie Madoff (left) in ABC's "Madoff." Photo: Getty Images (2)


​Turns out Bernie isn’t crazy about “Madoff.”

Bernie Madoff, the world’s most notorious Ponzi schemer — who is serving a 150-year federal prison sentence — panned an ABC miniseries about his crooked life, calling it “fiction” and “absurd.”

The disgraced ​77-year-old ​money man, who​ will spend the rest of his life behind bars for orchestrating ​a decades-long, $20 billion Ponzi scheme ​that destroyed the lives of thousands of investors, took umbrage at ​the two-part ​“Madoff,” which aired earlier this month and featured Richard Dreyfuss in the lead role and Blythe Danner as his wife Ruth.

“I’m sure it is fruitless to enumerate the numerous fiction and absurd mischaracterization in the ABC movie,” he wrote in an e-mail to NBC ​News ​from his ​prison, the Butner Federal Correctional Complex in North Carolina

“However I have never been one to turn the other cheek. I will just cover those incidents that have drawn queries.

Among his other beefs:

•“I have NEVER slapped my son Mark,” wrote Madoff.

•He insisted that his wife Ruth was never “an officer” in his sham firm.

•“My brother was improperly characterized as pathetic soul,” he wrote of Peter Madoff, who is serving 10 years behind bars. “In reality, Peter was a brilliant and important leader of our market making and proprietary division. His outstanding creation of our technology platform was the envy of wall street.”

•Madoff claimed he never had an affair the CFO of a Jewish charity as portrayed in the movie and instead called her a “stalker.”

•He disagreed with the movie’s portrayal of his parents, as shamed by financial ruin: “In fact they were highly regarded in our community. My father was the president of the temple.”

Remarkably, he had no problems with Dreyfuss’ work and didn’t sidestep his monstrous financial acts.

“Yes I made a disasterous (sic) business mistake that caused unforgiveable ​(sic) ​pain to my family, friends and clients, and will continue to do everything in my power to recover their lost investment principal,” he wrote.
 
http://nypost.com/2016/03/29/bernie-madoffs-aides-think-prosecutors-played-the-race-card/

Bernie Madoff’s aides think prosecutors played the race card
By Lia Eustachewich
March 29, 2016 | 3:13pm

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Bernie Madoff's former operations chief Daniel Bonventre leaves court in 2014. Photo: David McGlynn


Lawyers for five former aides to Ponzi schemer Bernie Madoff argued Tuesday to have their convictions overturned, claiming comments prosecutors made in summations about the civil rights movement improperly played to jurors’ emotions during the 2014 trial. :rolleyes:

Assistant US Attorney Randall Jackson had invoked civil rights lawyer Constance Baker Motley, who was the first black woman to serve as a federal judge, when asking the mostly minority jury during his rebuttal to find the courage to convict the Madoff cronies.

During arguments Tuesday before a panel of Second Circuit appellate judges, Andrew Frisch, attorney for Madoff’s former operations chief Daniel Bonventre, called Jackson’s comments “noxious” and prejudicial to his client getting a fair trial.

“There were a million metaphors that the prosecutor could’ve used to make that point,” Frisch told the three judges. “The fact is the entire rebuttal was an appeal to emotion.”

Attorneys for the five workers — Bonventure, Joann Crupi, Annette Bongiorno, George Perez and Jerome O’Hara — have also railed against other Jackson comments during summations, including references to the “Godfather” movie.

The employees were found guilty on all counts of helping Madoff pull off the massive $17 billion scam.

On Tuesday, prosecutor Aimiee Hector said Jackson’s comments were “relevant” on rebuttal, given defense summations, but admitted the situation could’ve been handled differently.

“In hindsight, may we have made different choices? Perhaps,” Hector said. “But when you look back at them … they are not improper.”

Manhattan federal Judge Laura Swain, who presided over the five-month trial, previously criticized Jackson’s comments as “at best ambiguous and at worst unfathomable” — but ruled they weren’t prejudicial.

Still, appeals Judge John Walker didn’t seem that convinced.

“This is the last thing the jury heard before it deliberates. The rebuttal has to be handled in a responsible way,” said Walker. “I’m not sure it was.”

Jackson, who is black, has since left the US Attorney’s Office to work in private practice.

Madoff pleaded guilty in 2009 and is serving a 150-year sentence.

Bonventre was sentenced to 10 years, while account manager Crupi and secretary Bongiorno each got six years.

Computer programmers O’Hara and Perez received 2½ years.
 
http://nypost.com/2016/04/20/madoff-stooges-wont-have-their-convictions-overturned/

Madoff stooges won’t have their convictions overturned
By Kaja Whitehouse
April 20, 2016 | 12:44pm

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Daniel Bonventre
Photo: AP


Five former aides to “Ponzi King” Bernie Madoff lost their bid to have their convictions overturned by arguing, among other things, that the jury verdict was tainted by a black prosecutor playing the race card. :rolleyes:

A federal appeals court in Manhattan rejected the motley crew’s claims, which were argued last month, that the jury was improperly swayed by a prosecutor’s references to the work by federal Judge Constance Baker Motley, who is also a civil rights activist, during his closing arguments.

“While the prosecutor’s choice of subject was peculiar, and his rhetoric needlessly grandiose, it did not constitute severe misconduct,” the three-judge panel wrote in a ruling released Wednesday.

It upholds the 2014 convictions of Daniel Bonventre, Annette Bongiorno, Jerome O’Hara, George Perez and Joann Crupi, who helped keep Madoff’s multibillion-dollar scheme afloat by creating fake customer account statements and falsifying IRS regulatory filings, among other misdeeds.

The appeals court also rejected the group’s other legal arguments for getting off scot-free, including claims of prosecutorial misconduct and insufficient evidence.
 
http://nypost.com/2016/12/07/bernie-madoff-talks-crime-in-rare-audio-recording/

Bernie Madoff talks crime in rare audio recording
By Post Staff Report
December 7, 2016 | 11:02am | Updated

Now you can hear Bernie Madoff try to rationalize the biggest Ponzi scheme in history.

Eugene Soltes, an associate professor at Harvard Business School who wrote white-collar crime book “Why They Did It,” has released a rare audio clip from his phone interviews with the jailed Ponzi schemer.

“You start out, at least in my part, not exactly sure what I wanted to do in life, other than being a success,” Madoff said in the audio clip posted on Business Insider.

“I built my confidence up to a level where I, sort of, felt that — you know — there was nothing I couldn’t attain,” the fraudster said from federal prison in Butner, North Carolina.

Soltes said he spoke with Madoff every Wednesday evening at 7 p.m. over several years.

“He’s brilliant, he’s cordial, in many ways very friendly,” the author said of Madoff.

Madoff was arrested on Dec. 11, 2008, for bilking thousands of investors out of billions of dollars. He eventually pleaded guilty to fraud charges and was sentenced to 150 years in federal prison.

“I, sort of, rationalized that what I was doing was OK, you know,” Madoff said in the interview.

“I wasn’t going to hurt anybody. It was a temporary thing and because of the success that I’ve had and the money I’ve made for people, I sort of felt, it was just,” Madoff boasts.

Despite saying he wasn’t going to hurt anyone, Madoff brought financial ruin to hundreds of investors, and his own son Mark hanged himself two years after the scheme was uncovered.
 
http://nypost.com/2017/03/27/man-leaps-to-death-from-sofitel-hotel/

Investor burned by Madoff leaps to death from luxury hotel balcony
By Shawn Cohen, Erik Blades and Joe Tacopino
March 27, 2017 | 6:01pm | Updated

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Tamara Beckwith


A hedge-fund executive who lost millions in Bernie Madoff’s infamous Ponzi scheme jumped to his death from the luxury Sofitel New York Hotel on Monday afternoon, authorities said.

Charles Murphy, 56, whose fund at Fairfield Greenwich invested more than $7 billion with Madoff, leaped from a room he had rented on the 24th floor around 4:42 p.m. and landed on a fourth-floor terrace, according to police sources.

The financier was at the helm of the prestigious hedge fund when the firm poured billions into Madoff’s coffers.

Fairfield lost nearly $50 million when Madoff’s scam imploded, according to the Wall Street Journal (paywall).

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Charles Murphy
Patrick McMullan


The investors filed a class-action lawsuit and the company agreed to be part of an $80 million settlement.

Murphy owned a multimillion-dollar limestone townhouse in the heart of Lenox Hill with eight bedrooms, 11 fireplaces and two elliptical staircases, according to The Real Deal.

Murphy purchased the building on East 67th Street from Seagram heir Matthew Bronfman for $33 million in 2007. The house was previously owned by The Foundation for Depression and Manic Depression.

A person who answered the door Monday night said the family was grieving.

A parking attendant at a nearby garage said Murphy’s wife, Annabella Murphy, crashed their Honda Odyssey last summer but could not afford to fix it.

“She didn’t even have enough money to pay for the damage,” the attendant said.

Murphy had been serving as a partner with the investment management firm Paulson & Co.

The head of the fund, John Paulson, released a statement Monday night calling Murphy “a brilliant man, a great partner and a true friend.”

The incident was reported at 4:42 p.m., when witnesses said the man jumped off a balcony.

The impact of the landing shattered concrete tiles, and he could be seen lying in a business suit.

The tragedy was the third high-profile suicide connected to the Madoff Ponzi scheme.

Madoff’s eldest son, Mark, was found hanged in his Soho apartment in December 2010 — the second anniversary of his father’s arrest.

Two investors also killed themselves. William Foxton, a 65-year-old former Army major, committed suicide in 2009 due to the shame of going bankrupt.

Rene Thierry Magon De La Villehuchet, a French aristocrat, whose AIA Group had lost $1.5 billion, was found dead shortly after the scandal broke in 2008.
 
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http://nypost.com/2017/03/29/madoff-victim-added-wife-to-townhouse-deed-before-suicide/

Madoff victim added wife to townhouse deed before suicide
By Carleton English
March 29, 2017 | 10:20am | Updated

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Charles and Annabella Murphy at the Nature Conservancy's Beaches & Bays Gala in June 2008 in East Hampton. Getty Images


The hedge-fund executive who jumped to his death from a Midtown luxury hotel Monday appears to have been planning his grisly suicide for weeks.

Charles Murphy — driven to despair after losing millions in Bernie Madoff’s Ponzi scheme in 2008 — added his wife to the deed of their Upper East Side mansion just three weeks before his death, public records show.

The chilling preparations were likely made to help his wife, Annabella, secure sole ownership of their 11,500-square-foot townhouse on East 67th Street, legal experts said.

“It would appear that by putting her on the deed, he gave her an equal undivided interest in the property so that she would have owned 100 percent at the time of his death,” Jules Haas, a New York City estate planning attorney, told The Post.

Without his wife’s name on the deed, ownership rights would be determined by 56-year-old Murphy’s will, Hass noted. In the absence of a will, ownership rights are determined by state laws.

Murphy purchased the mansion in 2007 from Seagram heir Matthew Bronfman for $33 million — at the time a record price for a 25-foot-wide home, according to the Real Deal.

Murphy bought the stately home – which boasts eight bedrooms and 11 fireplaces – shortly after joining hedge fund Fairfield Greenwich, which had $7 billion, or roughly half its assets, invested with Madoff.

Two years later after the scandal broke, Murphy tried unsuccessfully to unload the townhouse for $37 million. He listed it again last May for $49.5 million to no avail.

The lavish manse — which once belonged to the Foundation for Depression and Manic Depression — is now listed on Corcoran for $36.5 million.

As reported by The Post, Murphy’s wife was so cash-strapped last summer that she couldn’t afford to fix her Honda Odyssey after crashing it, according to an attendant at her parking garage.

That’s despite the fact that Murphy had landed a job as a partner at Paulson & Co., the highbrow hedge fund headed by billionaire John Paulson.

On Monday, Murphy jumped to his death from a 24th-floor window at the posh Sofitel New York Hotel.
 
http://nypost.com/2017/05/14/the-sad-new-life-of-exiled-ruth-madoff/

The sad new life of exiled Ruth Madoff
By Isabel Vincent
May 14, 2017 | 12:58am

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Ruth Madoff
Elder Ordonez/INFphoto.com


Every morning, the petite blonde with the bright red lipstick walks the few blocks from her nondescript condo to the Upper Crust Bagel Company on Sound Beach Avenue, the main drag in this picturesque New England hamlet of 6,600 people.

Just about everyone who lives here knows it’s Ruth Madoff in exile, and they mostly leave her alone.

They know the broad outlines of her fall — how her privileged world exploded in December 2008 when her husband, Bernie, confessed to the biggest Ponzi scheme in history, an $18 billion fraud for which he is serving a 150-year sentence.

Ruth lost everything — her money, social status, husband and her two sons. Mark, the eldest, committed suicide in 2010, and Andrew died of cancer in 2014.

Ruth will turn 76 this week, two days before HBO airs “Wizard of Lies,” a dramatic retelling of the fall of the house of Madoff, starring Robert de Niro as Bernie and Michelle Pfeiffer as Ruth.

How does she feel about the film’s release?

“I have nothing to say,” she said when The Post knocked on the door of the 989-square-foot town house she rents in this bucolic burg of neatly trimmed hedges, where children wait for the school bus outside beautifully restored shingled cottages, and homemakers in Spandex drive their husbands in Audis and Land Rovers to the Metro-North *station.

It’s only an hour’s train ride to Manhattan, but it’s a world away for Ruth, who once owned a sprawling apartment on the Upper East Side and mansions in Palm Beach and Montauk.

After her husband’s conviction, Ruth was forced to give up her palatial digs, and was no longer welcome among her socialite friends. Donald Trump, who denounced Bernie as “a sleazebag and a scoundrel without par,” refused to rent an apartment to Ruth in any of his Manhattan buildings as she desperately searched for a place to live, a source close to the *Madoff family told The Post.

Before her husband was sentenced in 2009, Bernie made a deal with prosecutors. In exchange for giving up most of their wealth — $80 million worth of mansions, jewelry, cars and art — Ruth was allowed to keep $2.5 million.

Ruth took the cash and skipped town.

After briefly living in an exclusive condo in Boca Raton, Fla., Ruth came to Old Greenwich in 2012, to be close to her three grandchildren who live nearby. She lived for two years at 57 Tomac Ave. in a quaint house, built in 1905 and then owned by her son Andrew and his estranged wife, Deborah West, public records show.

“She was a very nice neighbor is all I have to say,” said Mike Worden, who lived across the street from the *Madoff house.

Two months after Andrew died of a rare form of lymphoma, Ruth was booted from her son’s home. It was sold by West two years later and was recently razed by its new owner to make room for new construction.

Ruth moved from 57 Tomac to the town house in the condominium complex called The Gables, where she now lives. The gated community features a heated swimming pool, squash courts, gym and security, although there was no guardhouse attendant when The Post visited last week. A one-bedroom unit was listed for $3,100 a month.

It was here that Pfeiffer reportedly sat in Ruth’s kitchen in preparation to play her in “Wizard of Lies,” the drama directed by Barry Levinson. “She sat in her kitchen and studied her,” a source said.

“I don’t think it would be appropriate to say she ‘cooperated’ with the film,” Levinson told Page Six. “Michelle simply spent a little time talking to Ruth. I don’t think Michelle talked much about the script. It was simply to get to know her — however brief the time spent.”

Neighbors say Ruth mainly keeps to herself in Old Greenwich, where she tools around town in a new silver Toyota Prius.

But mostly she just walks and walks, neighbors say.

She strolls every morning to buy a bagel at Upper Crust but avoids the other bakery in town — Sweet Peas. Last week, the upscale bakery and meeting spot was filled with young women in exercise clothes sipping lattes and surrounded by baby *strollers.

“Ruth never comes in here because these people are part of her old life, and the ones who lost money with Bernie,” said a woman who described herself as a friend.

Now her new friends are a group of women who are active in church craft sales and don’t get their nails or hair done, said a neighbor who has seen Ruth.

“If they weren’t living in Old Greenwich, you would think these ladies were all homeless,” she told The Post. “Ruth spends a lot of time with them, and I have never seen her dressed up here. She’s always in the same jeans.”

Last Christmas, Ruth helped one of her friends sell homemade crafts at a local church bazaar, the neighbor said.

“It was quite the sight to see Ruth Madoff fetching crafts from a tub *under the table, and taking in money at the sale,” the neighbor said.

Other neighbors have seen her on brisk morning walks at the nearby beach on the Long Island Sound, and strolling up and down the town’s main street, stopping in at Anna *Banana, a store that sells children’s clothes, and frequenting the Indulge Salon and Beauty Bar.
Modal TriggerAnna BananaJ.C. Rice
“Why can’t she just live in peace?” asked a woman who marched out of the salon to confront a Post photographer. “She has a right to her privacy.”

The beauty boutique’s welcoming attitude is in sharp contrast to Manhattan’s tony Pierre Michel salon on East 57th Street, where for a decade Ruth would go for her highlights in Soft Baby Blonde every six weeks. The owners of Pierre Michel not only barred Ruth from the premises after Bernie was arrested in 2008, but last week they told The Post she’s still not welcome back.

“Unfortunately, many of the clients at the Pierre Michel Salon were victims of Bernie Madoff,” a spokeswoman for the salon told The Post. “While those at the salon are forgiving people, and do not wish more hardships on Ruth Madoff, they have to put their clients first.”

Instead of the $400 she paid to color her hair at Pierre Michel, she now pays between $175 and $200 for highlights in Old Greenwich.

Although Ruth was never charged with a crime, the family was shunned, largely because so many people in their elite social group had invested with Bernie and many lost their life’s savings. Holocaust survivor and *Nobel laureate Elie Wiesel, who died last year, called Bernie a “scoundrel” and said his charity lost $15.2 million to Madoff, and his own life’s savings were wiped out.
‘How do you sleep with a man for all those years and don’t know what he is up to? I just don’t buy the story that she knew nothing, and that she’s had a hard time.’

Ira Sorkin, a lawyer who represented Bernie, argues that Ruth is a casualty, too. “She has suffered beyond imagination,” Sorkin said. “She couldn’t walk out of her apartment to get a cup of coffee without being harassed.”

But victims of the fraud had harsher words for Bernie — and his missus.

“You, Mr. Madoff, have two sons that despise you,” said victim Marcia FitzMaurice in a court statement when he was sentenced in 2009. “Your wife, rightfully so, has been vilified and shunned by her friends in the community.”

The couple’s sons refused to speak to her after their father’s arrest. They claimed that they were never in on the scheme, but wondered why she continued to support her husband, living with him at their Manhattan penthouse for the three months that he was under house arrest between 2008 and 2009.

Ruth Alpern met Bernie Madoff when she was 16 and they were attending Far Rockaway HS in Queens. Both she and Bernie grew up in a middle-class Jewish neighborhood in Laurelton. They married in November 1959 when she was 18.

Ruth, who has been married to Bernie for nearly 60 years, worked as a bookkeeper for him when he established his investment business in 1960. But she has maintained that she didn’t know her husband was running a Ponzi scheme.

The couple had discussed committing suicide, even going so far as to swallow a handful of Ambien and other drugs, after the massive fraud was exposed in December 2008, she told The New York Times.

Her written apology, issued in June 2009 as Bernie was being sentenced, rang hollow to many of his victims.

“To say that I feel devastated for the many whom my husband has destroyed is truly inadequate,” the statement read.

Although she used to visit her husband at his federal prison in North Carolina, she stopped after son Andrew gave her an ultimatum in 2012, according to published reports.

If she wanted to have a relationship with Andrew and her two granddaughters, she would have to cut off her visits to Bernie in jail. Her lawyer, Peter Chavkin, refused to comment last week.

“How do you sleep with a man for all those years and don’t know what he is up to?” asked an Old Greenwich shop owner who did not want to be identified because Ruth frequents her store. “I just don’t buy the story that she knew nothing, and that she’s had a hard time. She hasn’t been through what half the people went through. People committed suicide because of the Madoffs. Please!”

Another shopkeeper wondered where Ruth is getting her cash.

In addition to her new car and regular visits to the hairdresser, another neighbor said Ruth is a client of a *local pilates studio, where a package of three private classes retails for $255.

But others say that Ruth lives modestly in Old Greenwich. No one could recall if she ate at Le Fat Poodle, the town’s best restaurant. She only occasionally drops off blouses at James Wong Laundry and Dry Cleaners, the owner told

“She’s a very nice lady,” said owner Cliff Ng. “She doesn’t say a whole lot. She’s on the frugal side and doesn’t wear expensive clothes.”

A patron dropping off her dry cleaning on Friday morning told The Post she feels sorry for Ruth.

“Every time she sees someone who recognizes her, you can tell from the expression on her face that she experiences a difficult emotion but she just keeps on smiling and moving on,” said the patron who did not want to be identified. “She is a gentle soul.”

Others were not so charitable.

“That smile, with those red, red lips!” said another owner. “She has this fake, permanent smile affixed to her face. It really irritates me. It’s *totally fake.”
 
http://nypost.com/2017/06/23/madoff-cooked-the-books-because-he-wanted-to-please-everybody/

Madoff cooked the books because he ‘wanted to please everybody’
By Richard Morgan
June 23, 2017 | 10:30pm

A treasure trove awaits Bernie Madoff obsessives who log into the website for US Bankruptcy Court, Southern District of New York.

There they’ll find nearly 500 pages of verbiage — most taken from the fraudster himself — during two days of deposition for a lawsuit in April.

A group of so-called “clawback defendants” sought testimony from Madoff in hopes of getting back some of the $65 billion that went up in smoke with Madoff’s Ponzi scheme.

“One of my problems was I always wanted to please everybody,” said the felon who ruined the lives of many.

The investors he tried to please most were called the Big Four: (((Beverly Hills money manager Stanley Chais, New York real estate broker Norman Levy, Florida accountant Jeffry Picower and Boston philanthropist Carl Shapiro.)))

“I was like a son to them, and they were like surrogate fathers to me,” Madoff said.

But they were all partners in crime.

They were aware of it,” he said when asked if the Big Four knew whether Madoff’s bookkeeper cooked the books. “They had instructed her to do it.”

The deposition even revealed the scammer had a civic side. Madoff called not going to trial his “biggest mistake” — yet appreciated that it saved “the government spending millions of dollars and years in a trial with me.”

Besides, he added, “I was [guilty] from 1992 on, which was bad enough.”

But the convict, who’s not even a decade into his 150-year sentence, was at his most convincing when asked why we should believe him this time around.

“I have nothing to lose now,” he said.
 
http://nypost.com/2017/06/27/madoff-sons-estates-to-forfeit-23m-in-ill-gotten-gains/

Madoff sons’ estates to forfeit $23M in ill-gotten gains
By Kaja Whitehouse
June 27, 2017 | 2:47pm

The estates of Bernie Madoff’s sons have agreed to fork over $23 million in ill-gotten gains from years of benefiting their dad’s Ponzi scheme, according to a joint announcement Tuesday by the court-appointed Madoff trustee and the Justice Department.

Mark Madoff, his widow Stephanie Mack and Andrew Madoff have agreed to cough up the money as part of a deal hashed out with the Irving Picard, the trustee responsible for recouping money for kyke investors. Half the money will also go to the Madoff Victim Fund, which is run by DOJ and has recovered $9 billion for kyke victims.

The deal leaves Mark Madoff’s estate with $1.75 million and Andrew Madoff’s estate with $2 million, bankruptcy court documents show.

A Manhattan federal bankruptcy judge is scheduled to approve the deal at a hearing on July 26th.

Both Madoff brothers died within a few years of their dad, who is serving a 150-year sentence in federal prison near Butner, NC., coming clean as the world’s biggest Ponzi schemer in Dec. 2008.

His scheme, which is now estimated to have swindled close to $20 billion, lured the rich-and-famous, including owners of the New York Mets and actors Kevin Bacon and Kyra Sedgwick.

Mark, who began working for his dad’s securities firm in 1986, hung himself on the second anniversary of his father’s arrest. Andrew, who started working at Bernard L. Madoff Investment Securities in 1988, died of cancer in 2014.

Picard’s fund has recovered more than $11.5 billion and distributed more than $9 billion to Madoff’s victims, including money from Madoff’s brother Peter, his wife Ruth and his niece Shana, who was the company’s compliance director.

Picard sued the brothers, who have always claimed they were kept in the dark about their dad’s scheme :rolleyes:, in 2009, most recently claiming they owed kyke investors a massive $153 million.
 
https://nypost.com/2018/12/05/widow-of-investor-duped-by-madoff-sues-shrink-over-suicide/

Widow of investor duped by Madoff sues shrink over suicide
By Julia Marsh
December 5, 2018 | 8:55pm | Updated December 6, 2018 | 8:45am

annabella-murphy.jpg

Charles Murphy and Annabella Murphy


Her husband killed himself after losing millions to Bernie Madoff — but now his wife is blaming the shrink.

The widow of hedge fund executive Charles Murphy, 56, whose fund at Fairfield Greenwich lost $50 million in the epic Ponzi scheme revealed in December 2008, filed suit in Manhattan Supreme Court on Wednesday against NYU Langone Professor Aaron Metrikin.

In court papers, Annabella Murphy accuses the psychiatrist of failing to prevent her husband’s suicidal tendencies.

Murphy jumped from the 24th floor of the luxury Sofitel New York Hotel in March 2017.

Metrikin treated the fallen financier for nine months before his suicide leap.

The suit says Murphy had previously threatened to kill himself by jumping from that very hotel.

“Despite knowing that the decedent had attempted suicide in the past and had advised him of suicidal tendencies, [Metrikin] failed to provide proper medication or to hospitalize decedent,” the suit says.

The suit also faults the doc for failing to refer his reeling patient to specialists. The shrink could have prevented Murphy’s death, the filing says.

According to previous reports, he had apparently been planning his demise for weeks and added his wife to the deed of their 11,500-square-foot townhouse on East 67th Street shortly before his suicide.

Earlier this year, she sold it for $20 million less than the initial asking price of $49.5 million.

And the family apparently was having financial troubles before Murphy’s leap. A parking attendant at a nearby garage said his wife had crashed their Honda Odyssey but could not afford to fix it.

At the time of his death, Murphy was working for Paulson & Co., a leading hedge fund run by billionaire John Paulson.

Paulson remembered his business partner as a “brilliant man, a great partner and a true friend” in a statement released following the suicide.

Murphy left behind five kids.

His wife is suing for unspecified damages including funeral, burial costs and her husband’s “conscious pain and suffering” leading up to his death.

“It’s a sad, unfortunate case,” her lawyer, David Jaroslawicz, told The Post.

“He certainly shouldn’t have been in a non-institutionalized environment,” Jaroslawicz said, adding that he consulted an expert who said the widow had a valid claim.

Metrikin did not return multiple messages seeking comment.

Murphy’s was the third death connected to the Madoff scandal. The schemer’s elder son, Mark, hanged himself in December 2010 on the second anniversary of his dad’s arrest. Two other investors — William Foxton and René-Thierry Magon de La Villehuchet — ended their lives after losing vast sums to the scheme.

A federal judge sentenced Madoff to 150 years in prison in 2009.
 
https://nypost.com/2020/02/05/berni...-18-months-to-live-seeks-release-from-prison/

Bernie Madoff has ‘less than 18 months to live,’ seeks release from prison
By Emily Saul and Bruce Golding
February 5, 2020 | 5:59pm | Updated

Infamous Ponzi schemer Bernie Madoff has less than 18 months to live :rolleyes: and wants a judge to grant him “compassionate release” from prison so he doesn’t have to die there, according to court papers filed Wednesday.

The epic fraudster — who ripped off tens of thousands of investors around the world with his $65 billion scam — even claims to have an unidentified friend who’s willing to take him in should the long-shot bid for freedom succeed.

Madoff’s Manhattan federal court filing says the 81-year-old con man — who’s serving a maximum, 150-year sentence — is terminally ill with “end-stage” kidney disease and a host of other “chronic, serious medical conditions,” including high blood pressure and heart disease.

It also calls the punishment that Madoff received in 2009 “symbolic” and invokes the “First Step Act” that President Trump signed into law in 2018 to help reduce the federal prison population.

“It is evident from a review of the [applicable] factors that Madoff presents no danger to any person or the community,” the filing says.

“He has no history of violence, he has less than 18 months to live and the public nature of his crimes guarantee that he would be unable to participate in financial or investment-related activities ever again.”

One of Madoff’s victims, photographer Gregg Felsen, said Madoff “should die in prison.”

“I don’t think there’s anybody who would want him to be released,” said Felsen, 72, of Palm Springs, California.

“He ruined the lives of thousands and thousands of people.”

Madoff made his pitch for leniency to Judge Denny Chin, who imposed his sentence and held onto the case even after being elevated to the US Second Circuit Court of Appeals.

If released, Madoff — who once owned a duplex penthouse on the Upper East Side, along with a beach house in Montauk, a waterfront mansion in Palm Beach, Florida, and a villa on the French Rivera — would live off of “Social Security and Medicare benefits,” court papers say.

A spokesman for Manhattan US Attorney Geoffrey Berman declined to comment beyond saying prosecutors would response to Madoff’s request in a court filing of their own.

But the former lead prosecutor in Madoff’s case, Marc Litt, said there’s “no evidence in the public record to justify compassionate release.”

“Meanwhile, thousands of Madoff’s victims, whose lives were destroyed by his greed and criminal acts, have no means to secure ‘release’ from the trauma he caused,” added Litt, now a partner in the Wachtel Missry law firm.

Madoff’s scheme also visited ruin on his own family, with older son Mark hanging himself in Soho apartment in 2010, two years to the day after the FBI busted his dad, while younger son Andrew died in 2014 from a recurrence of cancer that he blamed on the stress and shame of his dad’s crimes.

Madoff’s wife, Ruth, cut off all contact with him at her sons’ insistence, she told NBC’s “Today” show in 2011, but Madoff claimed to CNBC in 2013 that he was still able to contact her about family matters.

In a series of recent phone interviews, Madoff complained about his fate, the Washington Post reported.

“I’m terminally ill,” Madoff told the paper.

“There’s no cure for my type of disease. So, you know, I’ve served. I’ve served 11 years already, and, quite frankly, I’ve suffered through it.”

Madoff also claimed that “there hasn’t been a day in prison that I haven’t felt the guilt for the pain I caused on the victims and for my family” and said his dying wish was to salvage his relationships with his grandchildren.

Madoff’s court filing notes that the late Lockerbie bomber, Abdel Baset al-Megrahi, was granted compassionate release from a Scottish prison in 2009 because he had prostate cancer, and that crooked former WorldCom CEO Bernie Ebbers got sprung from a Texas prison less than two months before he died on Sunday.

Madoff, who’s locked up in a federal medical center in Butner, N.C., was denied compassionate release by the warden there in December, court papers say.

Last year, he asked Trump to commute his sentence, but that request remains pending, according to the Justice Department’s Web site.
 
https://nypost.com/2020/03/05/bernie-madoff-should-die-behind-bars-prosecutors/

Bernie Madoff should die behind bars: prosecutors
By Lee Brown and Ben Feuerherd
March 5, 2020 | 9:17am | Updated

Remorseless Bernie Madoff should be left to die behind bars for his “extraordinarily evil” crimes — even if he has only months left to live with kidney disease, US prosecutors insisted in a court filing.

The 81-year-old fraudster — whose $65 billion Ponzi scheme was the biggest in history — is seeking “compassionate release” from his 150-year prison sentence, saying he has at most 18 months to live due to “end-stage” kidney disease and other “chronic, serious medical conditions.”

But government prosecutors on Wednesday noted around 500 victims wrote powerful letters objecting to his release — with less than two dozen showing any support for him being allowed home early.

“Madoff’s crimes were ‘extraordinarily evil.’ His sentence was appropriately long. It should not be reduced,” prosecutors wrote in the 34-page filing.

Madoff has shown no remorse for his crimes, the prosecutors argued, noting that they caused at least two ripped-off investors to kill themselves and even his own son, Mark Madoff, hanged himself on the second anniversary of his dad’s arrest.

Of around 520 victims who wrote letters, only 20 — just 4% — supported him getting a compassionate release, the filing noted.

One 84-year-old victim wrote saying they had “no sympathy for this depraved individual,” asking, “Why should he be shown any compassion, when he had none for his many victims?”

The wife of an investor who killed himself noted how she “lost all my money and my husband of 40 years” because of Madoff’s “horrific crimes.”

“As far as I am concerned, he should spend the rest of his life in jail,” she wrote.

Prosecutors said it was “remarkable that so many victims took the time to write to the Court over 10 years after Madoff’s original sentencing.”

“Their letters show how deeply Madoff’s crimes continue to affect his victims, many of whom, as one put it in a letter to the Court, are “serv[ing] a kind of life sentence of [their] own.”

The filing also noted that he was initially sentenced to 150-years on the clear understanding that it meant him dying behind bars.

“The Court clearly reckoned with the fact that Madoff would die in prison well before his term expired. Nothing in the intervening years, particularly given Madoff’s continuing refusal to accept responsibility and show remorse to his victims, should change that analysis,” the filing says.

They argued that the prison time — along with a fine of more than $170 billion — was to “send a message that Madoff had been punished to the fullest extent of the law.”

“Even though time has passed and Madoff may now be near the end of his life, that message is equally important. He should not be released,” the prosecutors argued.

“The nature of Madoff’s crime — unprecedented in scope and magnitude— wholly justified the 150-year sentence this Court imposed and is by itself a sufficient reason to deny Madoff’s motion.”

Madoff is confined to a wheelchair while he battles terminal kidney disease and other ailments, his attorney, Brandon Sample, said in an early February court filing.

“Madoff, despite what the government might claim, is remorseful for his conduct,” Sample said Wednesday. “A reply addressing the government’s other contentions will be filed.”
 
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