This is the week that Bernard Madoff, the former NASDAQ chairman accused of perpetrating the biggest fraud in U.S. history, will confront his victims for the first time – and perhaps even acknowledge his own culpability.
On Thursday, at the second of two court hearings this week, the 70-year-old will come face to face with some swindled investors who until now, have had no place to air their fury and devastation.
If that’s not drama enough, it’s also when Madoff may plead guilty.
Last week, the trader waived his right to have a grand jury review the charges against him, setting the stage for a possible guilty plea Criminal-defense experts say a trial is unlikely in cases where prosecutors don’t seek a grand-jury indictment.
Should Madoff enter a guilty plea this week, it would be turned inside out for clues as to whether his wife, sons or business associates may also face prosecution. If, for instance, he tells the court that other people ‘known and unknown’ were involved in the fraud, that would increase their exposure.
Likewise, should he be charged with, or plead guilty to conspiracy, that would suggest that prosecutors plan to go after others, former federal prosecutor Steven Frankel told Newsday.
After his arrest Dec. 11, Madoff told authorities he acted alone in setting up a Ponzi scheme said to have involved tens of billions of dollars. But many have expressed skepticism that he could have pulled off a fraud on that scale without the notice, if not the assistance of others.
As for Madoff’s possible prison term , that would be a function of the crimes to which he pleads.
The charges are expected to include securities fraud, mail and wire fraud, and money laundering, Newsday reported. Securities fraud alone carries a maximum sentence of 25 years.
Federal prosecutors have also signaled they intend to go after Madoff’s assets, and filings indicate they will challenge defense attorney Ira Sorkin’s claim that Ruth Madoff should be entitled to keep $62 million in assets, in addition to their penthouse Manhattan apartment, valued at $7 million.
It’s not clear how many investors might attend the court hearing after U.S. District Judge Denny Chin invited victims late Friday to address the court.
Chin’s invitation was in response to papers filed by prosecutors asserting that victims had the right to be “reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding.”
Thousands lost money, among them many charitable institutions and schools. Prosecutors have asked anyone wishing to be heard to send an e-mail to usanys.madoff@usdoj.gov. by 10 a.m. Wednesday.
“There will be some fireworks,” Brad Friedman, a New York lawyer representing dozens of people who lost hundreds of millions of dollars, told the Associated Press. “But it’s not going to be blistering because it’s a courtroom. People will stand up in a respectful but forceful manner.”
Friedman said none of his clients have asked to attend next week’s hearing, and he’d advise them not to go.
“I just don’t think it accomplishes a lot,” he said. “You’re not going to make him feel bad.”
Madoff is also scheduled to appear in court Tuesday when the judge to explore whether there is a conflict of interest involving defense attorney Ira Sorkin. Sorkin’s now-deceased father had an account with Madoff, and in 1992 the lawyer represented a Florida investment firm, Avellino & Bienes, that invested with Madoff.
Madoff is expected to tell the court he understands the potential conflicts and has decided to stick with Sorkin anyway, according to people familiar with the case.
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1 Comments
#1. agilog 03.09.2009
Let’s bring back the stockade for criminals like Madoff.
Good idea or cruel and unusual?
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