The Madoff Chronicles: Inside the Secret World of Bernie and Ruth (18 page)

on one day in 1998:
Irving H. Picard v. Fairfield Sentry Limited, Greenwich Sentry L.P., and Greenwich Sentry Partners, L.P., May 18, 2009

Of the three, only one: Irving H. Picard v. Fairfield Sentry Limited, Greenwich Sentry Limited L.P., and Greenwich Sentry Partners L.P.
, May 18, 2009

On the day after Christmas:
Surveillance photos, Milberg LLP

more than $14 million: Securities and Exchange Commission v. David G. Friehling, Friehling & Horowitz, CPAs, P.C.
, March 18, 2009

CHAPTER FIVE

But Ruth could:
Sources close to Madoff family

“Was Ponzi Bernie Madoff”:
New York
Daily News
, March 29, 2009

Despite what the columnists’:
Sources close to Madoff family

Top Ten Signs Your Wife: Late Show with David Letterman
, March 30, 2009

Sitting in the luxury Manhattan:
Sources close to Madoff family

They traveled the world together:
Eleanor Squillari;
SIPC v. Bernard L. Madoff
, Affidavit of Michael Slattery, Jr., May 5, 2009;
SIPC v. Bernard L. Madoff
, Agreement by the Trustee and NetJet Sales, Inc., NetJets Aviation Inc., and NetJets Services, Inc., June 19, 2009

Madoff was obsessive about:
Person familiar with Madoff family

For the New York apartment:
Photographs obtained by ABC News

Bernie arranged his suits:
Nick Casale

The office summer party:
Madoff employees

In the winter:
Madoff’s 2006, 2007, and 2008 calendars

The Madoffs first:
Madoff childhood friends

Madoff paid $8 million:
Palm Beach property records

Ruth Madoff often used: SIPC v. Bernard L. Madoff
, Exhibit 25, May 5, 2009

Investigators discovered that: SIPC v. Bernard L. Madoff
, Exhibit 21, May 5, 2009

They enjoyed each other’s:
Sources close to Madoff family

In January 2008, company: SIPC v. Bernard L. Madoff
, Exhibit 25, May 5, 2009

had several billion dollars: MLSMK Investments Company v. JP Morgan Chase & Co. and JP Morgan Chase Bank, NA
, April 23, 2009

Ruth and Bernie spent:
Sources close to Madoff family

Her father steered him:
David Arenson and Cynthia Arenson

received a master’s degree:
New York University records

Mostly, when Bernie:
Sources close to Madoff family

Ruth emptied her accounts:
Massachusetts Secretary of State Complaint against Cohmad Securities Corporation, Exhibit 16, February 11, 2009.

CHAPTER SIX

“Obviously, first of all”:
Massachusetts Secretary of State complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., Exhibit 1, April 1, 2009

His scheme had narrowly:
Madoff case investigator

Madoff’s last close call: SEC News Digest
, November 30, 1992;
SEC News Digest
, December 11, 1992;
SEC News Digest
, November 23, 1993

In 2004, the SEC initiated:
Sources familiar with the investigation

Lawyers for Fairfield Greenwich:
Answer of Respondents, Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 29, 2009, Massachusetts Securities Division, docket number 2009–0028

Either FINRA or NASD: Picard v. Fairfield Sentry Limited, Greenwich Sentry, L.P., and Greenwich Sentry Partners, L.P.
, Complaint, May 18, 2009

FINRA said it had no:
Testimony by Stephen Luparello, FINRA interim CEO, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, February 4, 2009

At an industry conference:
The Philoctetes Center for the Multidisciplinary Study of the Imagination, “The Future of the Stock Market,” October 20, 2007

In 2000, Madoff was:
Former SEC chairman Arthur Levitt

He supervised “the commission’s”:
BATS Newsletter, January 23, 2008

Swanson was the SEC:
Source familiar with the investigation

the separate SEC investigation:
SEC Division of Enforcement Case Opening Report, January 4, 2006

Four months after:
Madoff family friend

An employee: Mail on Sunday
, January 4, 2009

came just two months:
SEC Division of Enforcement Case Closing Recommendation, November 21, 2007

Madoff boasted about:
The Philoctetes Center for the Multidisciplinary Study of the Imagination, “The Future of the Stock Market,” October 20, 2007

The SEC inspector:
SEC official

It turned into a full:
SEC Division of Enforcement Case Opening Report, January 4, 2006

Markopolos became intrigued:
Harry Markopolos testimony, the U.S. House of Representatives Committee on Financial Services, February 4, 2009

“Where did the missing”:
Harry Markopolos testimony, the U.S. House of Representatives Committee on Financial Services, February 4, 2009

Chelo even challenged:
Harry Markopolos testimony, the U.S. House of Representatives Committee on Financial Services, February 4, 2009

At the SEC offices:
Source familiar with the investigation

“voluntary production of”:
SEC Division of Enforcement Case Opening Report, January 4, 2006

Madoff then instructed:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., Exhibit 1, April 1, 2009

There were six:
Madoff speaking to lawyer Joe Cotchett from Butner prison

Madoff was asked: USA v. Bernard L. Madoff
, Information, March 10, 2009

tens of billions:
Madoff case investigator

CHAPTER SEVEN

who drank and partied hard:
Little Rick

They talked about the blonde:
Little Rick

CHAPTER EIGHT

Since 1989, he had:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 1, 2009

His wife “shopped uptown Manhattan”: Town & Country
, May 2005

Merkin began investing: Irving H. Picard v. J. Ezra Merkin et al.
, May 6, 2009

New York attorney general: The People of the State of New York, by Andrew Cuomo, Attorney General of the State of New York v. J. Ezra Merkin and Gabriel Capital Corporation
, April 6, 2009

“Despite having clear indications”: Irving H. Picard v. Stanley Chais et al
., May 1, 2009

Walter Noel was a:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 1, 2009

Noel and Tucker started by:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 1, 2009

He claimed he made:
Ibid.

Madoff had asked Tucker:
Ibid.

Madoff had created:
Madoff case investigator

“It had a logo”:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 1, 2009

able to honor some $3 billion:
Answer of Respondents, Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 29, 2009, Massachusetts Securities Division, docket number 2009–0028

Other than checking on:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 1, 2009

Fairfield Greenwich tried to:
Ibid.

Remarkably, Madoff told:
Ibid.

CHAPTER NINE

was found dead:
NYC Police Department and NYC Medical Examiner’s Office

In the weeks before:
Madoff’s 2008 calendar

Harry Markopolos, apparently:
Harry Markopolos testimony, U.S. House of Representatives Committee on Financial Services, February 4, 2009

totaled only 4,903:
Irving H. Picard

One ninety-year-old:
Brad Friedman, Milberg LLP

Madoff listed two: Irving H. Picard v. Cohmad Securities Corporation et al.
, June 22, 2009

“He cultivated an aura”: Securities and Exchange Commission v. Cohmad Securities Corporation, Maurice J. Cohn, Marcia B. Cohn, and Robert M. Jaffe
, June 22, 2009

Unbeknownst to many:
Ibid.

Jaffe’s payments from Madoff:
Ibid.

With Jaffe’s help:
Ibid.

Sitting around the kitchen:
Sources close to Madoff family

In an open letter: Newsweek
, December 23, 2008

For example, one Madoff: Irving H. Picard v. Jeffry M. Picower et al.
, May 12, 2009

Investigators believe the “real”:
Madoff case investigator

Foxton was unaware:
Willard Foxton

CHAPTER TEN

“We gave them everything”:
Sources close to Madoff family

Andy was crushed by his:
Source close to Madoff family

payroll, at $163,500: SIPC v. Bernard L. Madoff
, Affidavit of Michael Slattery, Jr., May 5, 2009

The bill would go: SIPC v. Bernard L. Madoff
, Exhibit 25, May 5, 2009

In testimony before:
Massachusetts Secretary of State Complaint against Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., April 1, 2009

His employees in London:
Madoff case investigator

In June, 2008, Mark again: SIPC v. Bernard L. Madoff
, Exhibits 13 and 14, May 5, 2009

Andy buy a $4 million: SIPC v. Bernard L. Madoff
, Exhibits 11 and 12, May 5, 2009