George S. May Business Blog

Is Madoff connected with Judge Ronald L. Ellis?

There are reports that Madoff’s son is planning to release a Christmas album. Luckily, because of my deep connections in the industry, combined with non-stop, tireless reporting I am able to present to you a portion from his first single:

(To the tune of Twelve Days of Christmas)

Over the Christmas vacation, my father sent to me,

Sixteen diamond watches,

Tiffany and Cartier,

Four Diamond brooches,

Three pairs of mittens

A couple sets of cufflinks,

One emerald ring

AND-HE-STILL-IS-IN-HIS-CONDO-ON-BAIL!!!

(AP Photo/Jason DeCrow)

All jokes a side, it seems that the man behind what has been called the greatest Ponzi-scheme of all time, is becoming even more Ponzi-esque as days go by. For those who don’t know, quickly, the term “Ponzi-scheme” derives from the ill-actions of a man named Charles Ponzi. Tragic, yet quite interesting, the man spent his life breaking the law, getting caught, and then breaking the law again.

When Madoff was arrested last month, he had promised the Securities and Exchange Commission not to dispose of any of his assets, as they may end up being sold and used to repay investors who lost in the scheme. But for a man who blatantly lied to friends, family, colleagues, and coworkers promising wonderful returns on their sound investments in his company…hey, one more little lie to the SEC won’t hurt, right?

Wrong.

The SEC caught wind that over the holidays Madoff and his wife tried to mail his sons what could be up to $1 million in goods, (mostly jewelry), and they are upset to say the least. Monday, the SEC called a hurried court hearing in which they asked the judge to immediately revoke his bail and send him straight to jail for the remainder of his trial. Makes sense right?

Madoff agrees the terms of his bail – Madoff breaks the terms of his bail – Madoff goes to jail to sit out the rest of his hearing.

But not so fast. According to Honorable Ronald L. Ellis, the decision is not so black and white. In fact, today is Friday Jan. 9th, and we are still waiting for a ruling. But before I comment on as to why I think this ruling is taking so long, I want to take a peak at Judge Ellis’ resume.

He has a B.A. degree in chemical engineering from Manhattan College (1972). He got his J.D. from New York University in 1975. He worked for a short time as a Patent Attorney after being admitted into the Patent Bar. In 1976 he began working for the NAACP Legal Defense and Educational Fund Inc. and stayed there up until 1993 when he was appointed as a magistrate judge.

Hold on a second.

Seventeen years in the NAACP? Now I may be mistaken, but isn’t that the same NAACP that kindly accepted millions of dollars from charities that Madoff managed the money for?

So I pose the question, in being a long time employee and member of the NAACP, do you think that Judge Ellis might have had a bit of respect/admiration toward a man who saw to it that incredible amounts of money came flowing through the organization he worked for? Even if Ellis did not benefit directly, (and by no means am I dismissing the idea that he did) I’m simply saying that, whether his own pocket got fatter or not, Ellis had to have had a good amount of respect for him. Funny how he is the same Judge presiding over the case. What a coincidence?

Hardly.

I would be willing to bet that Madoff’s attorneys pushed for Ellis to be the Judge. Heck, Madoff, at one time, was the poster boy for so many rich, powerful people, I bet there were a number of judges the defense would have loved to be tried under. You may be thinking: “well they may have respected him at one time, but I’m sure they are not too fond of him now, after he lost all that money for them”.

Not so fast.

When we first heard about the arrest of Madoff, the reaction all over the media was: ’so many people are going to be out devastating amounts of money’. And while that, in part, is true, the further the investigation gets, the more we see that there were a lot of organizations and individuals that pulled out in time and made millions. In one example I was reading, an investor threw down $1.8 million in the 90’s, withdrew $3 million over the course of the last ten years, and still had $4 million invested when Madoff went down. I bet you he is not all that upset with Madoff.

So, as Madoff sits silently behind the desk looking up at the honorable Judge Ellis, maybe he is not as nervous as everyone thinks he might be. Why? Well, it is very possible that regardless of the fines he receives, or the money that is taken from him, his connection to the judge could very well play a factor in why Madoff never steps foot inside a jail cell.

Related posts:

1. Peter Madoff under fire from Manhattan U.S. Attorney’s office Another member of the Madoff family has found themself on the hot seat. The New York Post reports that Peter Madoff, brother of the infamous Ponzi Schemer, Bernard,...