Bernie Madoff disgraced Ponzi schemer dies at 82 — Transcript

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1. 0:00Bernie made off disgraced Ponzi schemer
2. 0:03dies at 82 w h i n g t o n April 14th
3. 0:08Reuters Bernard maof who was convicted
4. 0:11for running the largest known Ponzi
5. 0:13scheme in history died on Wednesday in
6. 0:16prison where he was serving a 150-year
7. 0:19sentence the Federal Bureau of Prisons
8. 0:21said he was 82 time equals 400 Miz
9. 0:26greater than made off for decades
10. 0:28presented himself as a successful and
11. 0:30trusted Wall Street King bin while
12. 0:32secretly engaging in investment fraud
13. 0:34prompting his sentencing judge to
14. 0:36condemn his crimes as extraordinarily
15. 0:39evil a spokeswoman for the prison Bureau
16. 0:42said miff's death at the Federal Medical
17. 0:44Center in Butner North Carolina about
18. 0:473:30 a.m. eastern daylight saving time
19. 0:510730
20. 0:53GMT was believed to be from natural
21. 0:56causes maid off had been suffering from
22. 0:59terminal kidney disease and several
23. 1:01other medical ailments he had been held
24. 1:03at the Butner prison after being
25. 1:05sentenced in June 2009 to a 150-year
26. 1:08term for engineering a fraud estimated
27. 1:11as high as $ 64.8
28. 1:13billion moff had last year sought
29. 1:16compassionate release from prison so he
30. 1:19could die at home but the judge who had
31. 1:21originally sentenced him to prison
32. 1:23rejected that request Bernie up until
33. 1:26his death lived with guilt and remorse
34. 1:28for his crimes miff's lawyer Brandon
35. 1:31sample said in a statement although the
36. 1:34crimes Bernie was convicted of have come
37. 1:36to Define who he was he was also a
38. 1:39father and a husband he was softspoken
39. 1:42and an intellectual Bernie was by no
40. 1:45means perfect but no man is mti's
41. 1:48thousands of victims large and small
42. 1:51included
43. 1:52individuals Charities Pension funds and
44. 1:55hedge funds among those he betrayed were
45. 1:58the actors Kevin Bacon Kira Sedwick and
46. 2:00John malovich Baseball Hall of Fame
47. 2:03pitcher Sandy kofax and a charity
48. 2:06associated with director Steven
49. 2:08Spielberg owners of the New York Mets
50. 2:10longtime madeof clients struggled for
51. 2:13years to feel the good baseball team
52. 2:16because of losses they suffered we
53. 2:18thought he was God we trusted everything
54. 2:20in his hands Nobel Peace Prize winner
55. 2:23Elie bzel whose Foundation lost $15.2
56. 2:27million said in 2009 some victims lost
57. 2:31everything many came from the Jewish
58. 2:34Community where maof had been a major
59. 2:37philanthropist M's crimes were revealed
60. 2:40to authorities in 2008 by his two sons
61. 2:43who were not part of the scheme the
62. 2:46fraud exposed holes at the US Securities
63. 2:48and Exchange Commission which through
64. 2:50incompetence or neglect botcha half
65. 2:53dozen examinations there were several
66. 2:56times that I met with the SEC and
67. 2:58thought they got me maid off told
68. 3:00lawyers in a prison interview according
69. 3:03to ABC News maid off had been the
70. 3:06largest market maker on the NASDAQ once
71. 3:09serving as its non-executive chairman
72. 3:12time equals 400 Miz greater than his
73. 3:15brokerage firm was located in a Midtown
74. 3:17Manhattan Tower known as the lipstick
75. 3:19building employees there said they felt
76. 3:22like part of Mai's family they did not
77. 3:25know he was running his fraud on a
78. 3:27different floor only a trusted few did
79. 3:30in a typical Ponzi scheme money from
80. 3:33newer investors is used to pay sums owed
81. 3:36to earlier investors Midol said his
82. 3:38fraud began in the early 1990s but
83. 3:41prosecutors and many victims believe it
84. 3:43started earlier investors were entranced
85. 3:46by the steady double-digit annual gains
86. 3:49that made off seemed to generate and
87. 3:52which others found impossible to explain
88. 3:54or duplicate the money helped maid off
89. 3:57and his wife Ruth enjoy enjy luxuries
90. 4:00such as a Manhattan penthouse a French
91. 4:02Villa and expensive cars and Yachts with
92. 4:05a combined net worth of about $825
93. 4:08million but no one from mffs immediate
94. 4:12family was in the Manhattan courtroom
95. 4:14when US District Judge Denny chin
96. 4:16sentenced him and no family friends or
97. 4:19supporters submitted letters attesting
98. 4:21to his good character or deeds in
99. 4:23support of leniency I believed when I
100. 4:26started this problem this crime that it
101. 4:28would be
102. 4:30something I would be able to work my way
103. 4:32out of but that became impossible maid
104. 4:34off told the court as hard as I tried
105. 4:38the deeper I dug myself into a hole maid
106. 4:41off also addressed victims in attendance
107. 4:43saying I am sorry I know that doesn't
108. 4:46help you keeping up appearances time
109. 4:49equals 400 Miz greater than Bernard
110. 4:52Lawrence made off was born on April 29th
111. 4:561938 in the New York City burough of
112. 4:58queens and grew up up there as the son
113. 5:00of European immigrants who ran a
114. 5:02brokerage out of their house maid off
115. 5:04graduated from Hofer University in 1960
116. 5:08and briefly attended Brooklyn law school
117. 5:10before quitting time equals 400 Miz
118. 5:14greater than that same year he started
119. 5:16Bernard L madeof investment Securities
120. 5:19using his $500 in savings and office
121. 5:22space borrowed from his father-in-law
122. 5:24maid off told New York Magazine in 2011
123. 5:28maid off started small selling penny
124. 5:30stocks in the over-the-counter Market by
125. 5:33the early 1970s he had become one of the
126. 5:37five original broker dealers in the
127. 5:39NASDAQ trading system made off advocated
128. 5:42for greater Market competition at a time
129. 5:44the New York Stock Exchange still
130. 5:46dominated trading and became an early
131. 5:49force in electronic trading at times
132. 5:51friendly and charming and at others
133. 5:53aloof maid off had a pension for
134. 5:56neatness that some viewed as an
135. 5:58obsession M's offices were decorated in
136. 6:01black and Shades of Gray with little
137. 6:04paperwork or objects visible on employee
138. 6:06desks and he coordinated several wedding
139. 6:09rings with his wrist watches Market
140. 6:11making served made off well in the
141. 6:141980s and 1990s when he and his Rivals
142. 6:17could profit from buying a stock at $5
143. 6:20and selling it for $
144. 6:225.125 for example profitability declined
145. 6:26once decimalization became standard but
146. 6:29naff's brokerage operation provided
147. 6:31financial support for his fraud clients
148. 6:34were told they would make money through
149. 6:36a split strike conversion strategy in
150. 6:39which maid off would buy a basket of
151. 6:41large stocks to mirror the standard and
152. 6:43pores 100 index and reduce Risk by
153. 6:46purchasing and selling options on that
154. 6:48index made off looked successful and
155. 6:51customers were happy but it wasn't real
156. 6:55time equals 400 Miz greater than
157. 6:58prosecutors said B off and his staff
158. 7:00sent clients fake confirmations for
159. 7:02trades he never executed and fake
160. 7:05account statements to document gains he
161. 7:07never made maid off admitted to
162. 7:10sometimes dipping into his account that
163. 7:11JP Morgan chased to pay customers who
164. 7:14wanted their money back time equals 400
165. 7:18Miz greater than questions Mount
166. 7:20suspicions began surfacing in the early
167. 7:231990s when Mai's name came up in an SEC
168. 7:26probe of a now defunct Florida
169. 7:28accounting firm avalino and bnz in 2001
170. 7:33a Baron's article noted skepticism on
171. 7:35Wall Street about made off including
172. 7:38that he might be using his Market making
173. 7:40operation to smooth returns for
174. 7:42investors made off demurred it's a
175. 7:46proprietary strategy I can't go into it
176. 7:48in great detail he said while dismissing
177. 7:51the baron Theory as ridiculous more
178. 7:54questions were raised as a
179. 7:56whistleblower financial analyst Harry
180. 7:58Mar
181. 7:59began pressing the SEC to stop maid off
182. 8:03from 1992 to 2008 the SEC received six
183. 8:07complaints raising significant red flags
184. 8:11about maid off and whether he was
185. 8:12trading anything but never took even
186. 8:15basic steps to figure out what he was
187. 8:17doing it's Inspector General David cots
188. 8:19later said time equals 400 Miz greater
189. 8:24than it all came crashing down in the
190. 8:26fall of 2008 as the Global Financial
191. 8:29crisis struck and many investors
192. 8:31demanded to cash out unable to fulfill
193. 8:34$7 billion of redemption requests maid
194. 8:37off confessed to Sons Mark and Andrew
195. 8:39that his investment advisory business
196. 8:41was one big lie time equals 400 Miz
197. 8:46greater than the Suns went to the
198. 8:48authorities and maid off was arrested on
199. 8:50December 11th 2008 one day after his
200. 8:53company's Christmas party 3 months later
201. 8:56he pleaded guilty to 11 criminal count
202. 8:59including fraud money laundering and
203. 9:01perjury maid off initially maintained
204. 9:04that the fraud was his alone but
205. 9:07prosecutors ended up winning 15
206. 9:09convictions or guilty pleas these
207. 9:12included a guilty plea from Math's
208. 9:14younger brother Peter the firm's Chief
209. 9:16compliance officer who received 10 years
210. 9:18in prison the only trial ended with
211. 9:21convictions and prison terms for five
212. 9:24former madeof employees time equals 400
213. 9:28Miz great than prosecutors got a major
214. 9:30Boost after winning the cooperation of
215. 9:32Frank de pascali M's longtime Financial
216. 9:36Chief who died in 2015 of lung cancer
217. 9:39Ruth maid off was not charged she said
218. 9:43she felt her husband had betrayed her
219. 9:45after nearly a half century of marriage
220. 9:47many were skeptical of her claim she
221. 9:49knew nothing about the fraud within days
222. 9:53of naff's arrest efforts began to try to
223. 9:55recoup money for people who invested
224. 9:57with him or with third part parties that
225. 9:59sent their money to his firm bbing Bard
226. 10:03a court appointed trustee has recouped
227. 10:05more than 14.4 billion dollar by
228. 10:08targeting net winners who took more
229. 10:11money out of Mai's firm than they put in
230. 10:14another $4 billion is being distributed
231. 10:17from a fund set up by the US government
232. 10:20a large portion of these sums came from
233. 10:22a 7.2 billion settlement with the estate
234. 10:25of Jeffrey Pau a longtime madeof
235. 10:28investor from Florida time equals 400
236. 10:32Miz greater than the pain for Mai's
237. 10:34family did not end with the Patriarchs
238. 10:37imprisonment tormented by his father's
239. 10:39actions and by lawsuits Mark Midol the
240. 10:42older son hanged himself with a dog
241. 10:45leash at age 46 on December 11th 2010
242. 10:49the second anniversary of his father's
243. 10:51arrest time equals 400 Miz greater than
244. 10:55Andrew ma off died of cancer in
245. 10:57September 2014 at age 48 when rejecting
246. 11:01M's request for compassionate release in
247. 11:04June 2020 chin agreed with prosecutors
248. 11:07that prison interviews where maid off
249. 11:09played down his crimes show he never
250. 11:11fully accepted responsibility for them
251. 11:14time equals 400 Miz greater than in the
252. 11:18New York Magazine article maid off made
253. 11:20clear he believed he changed how Wall
254. 11:22Street operated and many victims might
255. 11:25have lost more money in the markets had
256. 11:27they not heard of him but said he would
257. 11:29not make excuses for his fraud and had
258. 11:31come to terms with his crimes and Pariah
259. 11:34status