After Receiving 150 Year Sentence, Madoff Debates an Appeal

Bernie Madoff, the scam king of the decade, was sentenced to 150 years in prison and according to his attorney, Ira Sorkin, he is uncertain about whether or not he will appeal this sentence. Bernie Madoff’s lead attorney spoke to Fox Business Network and said that “we haven’t made the decision yet” to appeal and that Ruth Madoff’s settlement “took a long time to work out.”

In a coup for the Fox Business Network, Sorkin tackled some tough questions:

• On appealing Madoff's 150 year settlement: “We haven’t made that decision yet.”



• On the significant wait for Ruth Madoff to make a deal regarding the surrender of a majority of the assets: “We came to a settlement with the government that took a long time to work out. It was a compromise.”



• On the amount of money recovered following the $50 billion Ponzi scheme:“More than $1 to 2 billion has been recovered.”

The question many are asking, is why wouldn't he appeal, what is essentially is, a life sentence? It could be that Madoff's attempt to get a more lenient sentence of 12 years based on the average lifespan for a man his age, fell on deaf ears. It could be that that Madoff's wife was vulnerable to possible jail time herself and feels it may be time to simply catch their breath. There are also his sons, Mark and Andrew, who worked for their father's firm and have been pleading innocent since the story broke. Maybe, quietly going away for 150 years, will make it possible for this chapter to close for them.

Unfortunately for Madoff and his attorney, they do not have 150 years to make a decision. In fact, they have only ten days from the day he received his sentence and soon his time will be measured in hours.

For the time being, Sorkin is making the case that he and his client are involved in the recovery process. For example, in the Fox Business interview, Sorkin acknowledged that there are assets in other parts of the world, citing France specifically, stating “There are assets overseas, and as we said in court yesterday, we are assisting the government -- my firm and one of my partners -- in recovering assets that are located overseas, which the U.S. attorneys office cannot recover on their own."

I would guess that Madoff is going to pursue an appeal in order to keep the door for a lighter sentence open. After all, I assume he can always change his mind on the appeal if his attorney asks for it, but he cannot force the government to give him more time to choose to pursue such.

Hearing the sentiments of those who are his victims makes me think that prison may be the safest place he could possibly be. So many have been terribly and profoundly impacted by this scam master. I don't know if that reality will be as inspiring as the hope of living beyond his sentence.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Madoff Stays Free

If you listened to the business pundits, you knew Madoff was going to jail. After all, he is accused of stealing over $50 billion from his victims. To make matters worse, FBI agents discovered checks made out in Madoff's apartment to family members in what appears to be an attempt to hide his wealth. To the surprise of pundits, neighbors, victims, and more, Madoff is not going anywhere. He remains in his comfortable New York City apartment.

It seems odd that a person who is in such a terrible mess would find any day to be a "good one." But considering the pressure he is currently under, he probably feels as giddy as a kid at the amusement park. This was a close one. Fox News is reporting Madoff could stay in this apartment for years as they proceed through the legal process, but I wonder how he can afford to do such. His apartment is very expensive, he is under house arrest (making it difficult for him to "get a job"), and he doesn't strike me as the type that would start a home business.

Bloomberg reports that "U.S. Magistrate Judge Ronald Ellis in Manhattan today said Madoff, arrested last month for running an alleged $50 billion Ponzi scheme, may continue to live under house arrest in his Manhattan apartment on the Upper East Side. Ellis imposed new conditions, ordering Madoff to compile an inventory of all items in his home and barring him from transferring property." So although he remains far more free than he would be in jail, he is far from off the hook and, in fact, he has additional requirements on his release.

Everything from a TV remote to every spoon in his kitchen will have to be made accounted for, put on the records, and stay in his possession until the issues surrounding his case are settled. He will be spending months getting this job done. Furthermore, he has every incentive to drag this process on in order to delay the judicial process.

What I find odd about Madoff is that he is so incredibly cool. He acts as though he was slapped with a parking ticket and not the type of crime that could keep him in jail for the rest of his life. Don't get me wrong, I'm not impressed. In fact, I think that his apparent detachment from this reality may be an indication of serious mental health issues. Imagine if he wins his case due to being not guilty, due to insanity. Anything is possible and it would make quite a news day.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Madoff Destroys Himself and Others

Bernard Madoff enjoyed one of the most trusted names on Wall Street. "Enjoyed" is definitely past tense. Madoff has sat on a committee of academics, regulators and executives formed in 2000 by former Securities and Exchange Commission Chairman Arthur Levitt to assist the agency on new stock-market rules in response to the growth of electronic trading. Madoff has led the trading committee at the Securities Industry Association, Wall Street’s biggest trade group, and has served as chairman of the Nasdaq Stock Market. Madoff was the quintessential insider, which is how he was able to go so deep into a far reaching "Ponzi scheme" (to use his own words). Everyone who was someone on both sides of Wall Street -- regulators and investors alike -- knew the 70 year old Madoff as an authority with enormous personal credibility.

Now, Bloomberg reports that Madoff is "alleged to be (a central part of) a Ponzi scheme that cost investors $50 billion, after he subjected it to oversight two years ago, people familiar with the case said." Did the regulators dismiss the normal level of due diligence that they would require for such investments because of Madoff's reputation? That, I'm sure is one of many questions that will be asked.

Bloomberg also reports that Madoff is "operating what he told his sons was a long-running Ponzi scheme in the New York-based firm’s business advising rich people, hedge funds and institutions. His ability to avoid detection may fuel debate about the SEC’s effectiveness and the adequacy of its resources for policing money managers. "

Ironically, Madoff was accused of illegal activities in the early 1990s but was found to had been operating legally in the raising of over $400 million in an unregistered securities deal. I wonder if they will want to look at that deal again, considering how far reaching this current scam is and its financial impact. $50 billion is no small amount (yes, you keep seeing BILLION).

Madoff got clean with his sons first and they, in turn, turned him in to authorities. They are completely distancing themselves from him and are declaring their innocence.

Madoff has invested huge amounts of money into the politicians who appoint the regulators. Furthermore, he has been in a regulatory role over the years. On the surface, he appeared to be the kind of person that would require anything but extensive scrutiny. Maybe, in order to protect those who would easily trust such individuals, such financial managers should be under additional scrutiny. I'm sure that will be part of future debates as well. In the mean time...buyer beware!

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.