A Stark Contrast

In very stark contrast to the life led by a Larry H. Miller of Utah (A profound professional and personal legacy) Bernard L. Madoff had a very different view of life. This case of massive and conscionable fraud has presented its latest twist. During a court hearing held auditorium style (yea that happens all the time, NOT!), Lawyer Ira Sorkin stated that it appears Mr. Madoff hasn't invested a single Lincoln penny in securities, possibly for as long as the last thirteen YEARS. It was cash in and cash out. He became so brazen with his deception that he didn't even try to fake any real or tangible holdings. Cash in, cash out. All paper and no substance. I guess I keep saying it and again, this should not be surprising. My hope is their ego will eat these people alive. Every time they look in the mirror, they see more of the wanton destruction that they have caused, singlehandedly. Ripping apart the fabric of human nature with no regard for their actions or inactions. Their air will be thick and have a rotten stench that won't go away. Their dreams will be hostage to a deafening orchestra of mind chatter and graphic art, of a valueless soul, of disrespect and narcissism. Stop stealing other peoples money.

But in our infinite wisdom of rights and freedoms, Mr. Madoff sits at home, in a penthouse apartment, certainly a fallen and disgraced 'financier' but far too free.

“We are operating out of a crime scene,” Picard said at the meeting. He added that his office has received 2,350 customer claims as of noon on Feb. 19. Those claims exceeded about $1 billion, Picard told reporters after the meeting."

I recognize that I will be splitting hairs here in terms of who actually has legitimate claim which will keep lawyers flush with cash for the foreseeable future, but, $1B?

"Customer claims will be capped at $500,000 for securities under the Securities Investor Protection Act, the trustee said. SIPC has about $1.6 billion in assets, $1 billion in credit available from the U.S. Treasury and another credit line from a consortium of banks. Picard doesn’t expect the claims to exhaust those funds, Picard told reporters after the meeting. "

Wait a sec, this is but one fraud. And the lawyer feels the need to state that this will not exhaust those funds? Well, I think since the institution a NATIONAL institution, it responsibilities lie a little further on than any single fraud.

Clawbacks and taxes paid on false profits were some of the more vociferous complaints heard from disgruntled investors at the meeting. Clawbacks will be on a case by case basis. Taxes are the government's issue, not the lawyers. Remember this is a liquidation and not a bankruptcy. Semantics. Everyone's hiding behind whatever they can find. Its all hokey pokey malarky. The consequences of the perpetrators of these crimes needs to be felt.

Many thanks to Seekingalpha.com and Bloomberg. Madoff left no sign of trades reported to clients