Tag Archive for: Madoff

The Picower settlement: Racketeering Rewarded

At The Daily Beast Allan Dodds Frank has supplied a valuable perspective on the Picower settlement – although you need to be alert to see it.

Payday for Madoff Victims” (December 18 2010) first of all refutes Barbara Picower’s tendentious assertion:

“I want to underscore the fact that neither the Trustee nor the U.S. Attorney has charged him with any illegal conduct.”

Picower could not be charged for a simple reason — he conveniently died.

Asked about Picower’s role in Madoff’s scheme and whether the settlement cleared Picower’s name, U.S. Attorney Bharara said, “Mr. Picower passed away a year ago and so the question of whether he had a role—as a criminal matter—is now moot.” Bharara refused to say more… Read more

The Picower Madoff settlement: A $7.2 Billion Whitewash

On Friday the astonishing news broke that the estate of Jeffrey M. Picower had agreed to cough up $7.2 billion to the liquidator of the Bernard Madoff fraud and the Federal Government. (See Zachary A. Goldfarb, “Madoff investor’s widow to return money, The Washington Post, Dec. 18, 2010.)

This news was astonishing because the amount — including a $2.2 Million payment to the Feds — was said to be “the largest single forfeiture in American judicial history.” It represents a considerable 35% of the amount thought to have been paid into the Madoff Ponzi scheme, raising the prospect of material compensation to some of the victims. And also because the Picower lawyer had been freely telling the press earlier this year he expected to settle for only $2 billion. All apparently was not well on the Picower legal front in 2010.

What was not astonishing was the rush to present what was in fact proof that Picower was a huge looter of the Madoff victims as evidence of noblesse oblige on the part of his widow, and to cover up what actually happened. CNN reports that

Picower withdrew $7.8 billion from Madoff’s investment firm since the 1970s, even though he only deposited $619 million, according to the trustee. Read more