George S. May Business Blog

Madoff sentenced to 150 years – Fair or foul?

Bernard L. Madoff was sentenced today in Manhattan federal court to 150 years in prison for perpetrating a Ponzi scheme that resulted in billions of dollars of losses to thousands of investor-victims.

In the sentencing, U.S. District Judge Denny Chin called the Madoff’s fraudulence “staggering” adding that his breach of trust to his investors was “massive”, “extraordinarily evil” and “not merely a bloodless crime that takes place on paper, but one that takes a staggering human toll”. “No other white collar case is comparable in terms of the scope, duration and enormity of the fraud and the degree of the betrayal” added Chin.

Prior to the extensive sentence being handed out, nine victims testified, explaining the utter devastation that Madoff and his fraud brought to their respective families.

71 year old Madoff was also ordered to give up $170,799,000,000, (yes that is the correct amount of zeros). Judge Chin had entered a preliminary order of forfeiture on June 26, 2009, which completely divested Madoff of his interest in all property, including real estate, investments, cars and boats, in partial satisfaction of the forfeiture judgment.

Madoff has been in custody since he pleaded guilty on March 12, 2009, to an 11-count information charging securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the U.S. Securities and Exchange Commission and theft from an employee benefit plan.

“The sentence imposed today recognizes the significance of Bernard Madoff’s crimes,” said Acting U.S. Attorney Lev L. Dassin. “While today’s sentence is an important milestone, the investigation is continuing. We are committed to bringing additional charges against anyone else who bears criminal responsibility. At the same time, we are focused on tracing, restraining and liquidating assets to maximize recoveries for the victims.”

It also should be added that Madoff was not silent in the courtroom this morning. Prior to his sentencing he gave the courtroom a statement that offered his victims an apology.

Among the excerpts:

– ”I cannot offer you an excuse for my behavior, how can you excuse betraying thousands of investors.”

–”I don’t ask for any forgiveness. I did not intend to do any harm, but I did a great deal of harm. I made an error of judgment. I could not accept the fact that for once in my life I failed.

– “I left a legacy of shame.”

Finally, in a dramatic finish, he turned to the victims that were present in the courtroom and said:

 ”I turn to face you. I know this will not help. I am sorry.”

While Bernie Madoff’s actions were devastating for so many parties involved, I must admit, the man’s sentencing of 150 years on top of having to give up $170 billion seems a bit excessive. As I can already hear the *gasps* let me clarify. The man got more years in prison that OJ!!! Now, what is the ideology behind putting people in prison for a life term? Because they are too dangerous to be left alone on the street. Murders, rapists, kidnappers all deserve life. His crime was horrific, in a different aspect, but still I can’t put Bernie Madoff in the same category as the likes of Charles Manson and Jeffrey Dahmer. The punishment of a life behind bars does not seem to fit the crime. A more fitting sentence, in my opinion, would be sentencing Madoff to a life of philanthropy. For instance, make him continue to work until his last dying day. Any income that he makes, yearly, over $10k will be put into a fund to pay restitution. Make him feel the pain of having no money and no hope for improvement. Make him understand what it is really like to be living paycheck to paycheck and still not able to pay the bills.

And let me answer to the ridiculous statements that I’ve seen around the web of “2 people committed suicide because of his actions so he should be prosecuted for murder”, with a scenario/question. A man’s receives a letter from his wife of 15 years that she is leaving him for another man. Devastated, he feels he can not go on alone and takes his own life. Should his wife be prosecuted for murder?

Put it this way, who would you rather have babysit your daughter: Bernie Madoff or a sex-offender? All I am saying is that if a rapist can get out of jail in 5 years, why should Madoff never see the light of day again?

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