Madoff Sentenced to 150 Years in Prison

Bernard L. Madoff was sentenced Monday, June 29 in Manhattan federal court to 150 years in prison for perpetrating a Ponzi scheme that resulted in billions of dollars of losses to thousands of investor-victims. United States District Judge Denny Chin, in sentencing Madoff, stated: Objectively speaking, the fraud was staggering and that the breach of trust was massive. Judge Chin described Madoffs crimes as extraordinarily evil and said that Madoffs was not merely a bloodless crime that takes place on paper but one that takes a staggering human toll. Judge CHIN said, No other white collar case is comparable in terms of the scope, duration and enormity of the fraud and the degree of the betrayal. Prior to imposing sentence, Judge Chin heard from nine victims who testified as to the devastation Madoffs fraud had caused to their lives and the lives of their families. As part of his sentence, Madoff, 71, was also ordered to forfeit a total of $170,799,000,000, which represents the total proceeds of and property involved in certain of Madoffs crimes. Judge Chin had entered a preliminary order of forfeiture on June 26, 2009, which completely divested Madoff of his interest in all property, including real estate, investments, cars and boats, in partial satisfaction of the forfeiture judgment. In addition, by order entered June 24, 2009, Judge Chin extended the time for ruling on an order of restitution for 90 days from the date of sentencing. Madoff has been in custody since he pleaded guilty on March 12, 2009, to an eleven-count Information charging securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC), and theft from an employee benefit plan. Judge Chin also signed a Stipulation and Order which resolves all claims that Ruth Madoff, Bernard Madoffs wife, would otherwise have brought against the forfeited property. Under the terms of the Stipulation and Order, the Government has obtained Ruth Madoffs interest in all property, including more than $80 million of property as to which she would have claimed an interest at a forfeiture hearing. Ruth Madoff will retain $2.5 million in funds in settlement of the claims that she would otherwise have brought against the forfeited property, including specifically all equity in the Madoff residences in New York, a portion of which the Government could not sufficiently link to the criminal conduct charged in the felony Information to which Bernard Madoff pleaded guilty. The Stipulation and Order makes clear, however, that nothing precludes any other department or agency of the United States or any other person or entity, including the United States Securities and Exchange Commission (SEC), Irving H. Picard, Esq. as trustee for the liquidation of the business of Bernard Madoff Investment Securities LLC, the Securities Investor Protection Corporation (SIPC), or Alan Nisselson, Esq. as trustee for the personal assets of Bernard Madoff and Ruth Madoff, from seeking to recover additional funds or assets from Ruth Madoff. As a result of the entry of the two orders, the Government has stripped Bernard Madoff and Ruth Madoff of all their interests in property belonging to them, including, for example: ¢ an account at Cohmad Securities Corp. valued at approximately $46.67 million; ¢ an account at Wachovia Bank, N.A. valued at approximately $13.3 million; ¢ a cooperative apartment located at 133 East 64th Street, New York, New York, valued at approximately $7.5 million (the New York Co-op); ¢ property located at 216 Old Montauk Highway, Montauk, New York, valued at approximately $7 million (the Montauk Property); ¢ property located at 410 North Lake Way, Palm Beach, Florida, valued at approximately $7.45 million (the Palm Beach Property); ¢ approximately $1.48 million on deposit in the United States Marshals Service Seized Asset Fund representing the net proceeds of the sale of the Madoffs home at Chateau des Pins Villa 2, 279 Chemin de la Garoupe, Cap dAntibes, France; ¢ all insured or salable personal property contained in the above-listed properties including, but not limited to: furniture, artwork, electronics and appliances, jewelry, and apparel; and ¢ tens of millions of dollars of loans extended by Bernard Madoff and Ruth Madoff to family, employees and friends. The Stipulation and Order requires Ruth Madoff to retain temporarily certain assets in France on behalf of the Government for the sole purpose of facilitating the sale of those assets and forfeiture of the proceeds of the sale. In addition, Judge Chin entered four orders authorizing the United States Marshals Service to sell four Madoff properties: the New York Co-op, the Montauk Property, the Palm Beach Property and certain cars and boats.