For many years, that number was 10. Ten represented the percent return investors received every 12 months despite the natural vagaries of the stock market. So it didn't matter if the Dow crashed, if the Nasdaq sold off, the bond market plummeted, oil prices skyrocketed, or there were wild swings in international markets.
Investors still made 10%. Simple math.
Bernie Madoff 's number changed dramatically when he finally admitted that it was impossible to achieve the same return to investors every year, and that his Jewish roots were actually part Italian dating back to the Ponzi family.
The courts decided that when it came to sentencing f0r his sociopathic-like crimes, the number 10 was far too small, and something more like 150 made more sense. And with that edict, Bernie Madoff will now live and more likely die with the number 150 stuck in his head, as he's been told that he can leave prison when he's around 220 years old. This, of course, being a number that he's not very likely to see unless he becomes bunk mates with Walt Disney. (that was for you cryogenics fans out there).
And with this final sentencing, it appeared that the legal work related to the Madoff family was primarily done. His sons pretended that they had amnesia and got off with a slap on the wrist. Although, one of them felt that was far too lenient, and decided to kill himself instead. Bernie's wife isn't serving any time either. She simply had to return cars, homes, boats, jewelry, televisions, iPods iPads, and anything else she didn't buy at a flea market.
But the whole time, I was wondering when the government was going to get to perhaps the most pivotal family member of the entire diabolical scheme.
Bernie's brother, Peter.
Peter Madoff had a critical role inside the organization. He was the compliance officer. Simply put, and this is really the comical part, he was responsible for making sure that all of the trades made by his brother were legal.
So, let me emphasize this again. Peter's main role with the company was to guarantee that his brother stayed within the legal guidelines of the SEC before making any investments. And here's the twist. Bernie didn't make any. Essentially, Peter falsified trades that were never made.
And this where the math gets crazy.
Next to Bernie, Peter was the next most pivotal player. He had to make it look like something was happening that really wasn't. The legal definition of this is "magician", but this was the illegal kind. We'll never know if the mastermind behind the business model was Peter himself, but I think it's safe to say that at the very least, he drove the getaway car.
For all crimes related to this scam, it was just announced that Peter will also be going to jail. But his sentence is only for 10 years.
What?!!!
Let me get these numbers straight. The face of the company and probable mastermind of the impropriety gets 150 years in prison. The guy who made sure it was all possible.....10.
150 vs. 10
Does something seem off here? Of course, there is some irony in the fact that Peter receives a number wholly identical to the investor returns he helped falsify for his entire career. Still, this is just plain inexcusable.
In a way, it feels like the Madoffs have scammed us again. I guess if you pay the lawyers enough money, you can make almost anything happen.
There's just such strength in numbers.
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