Legal News

From the Madoff Hearing: Jail-Bound Bernie in His Own Words

By Ashby Jones

We’ll have a fuller post later outlining the full Madoff hearing, but for now, let’s get you up to speed on the basics, according to the AP:

Madoff pleaded guilty to all of the charges, and Judge Chin accepted the plea. Madoff’s bail was revoked, and he was remanded into custody. Sentencing is set for June 16.

A few quotes from Madoff, who was allowed to speak briefly at the hearing (click here for the plea allocution). Some highlights:

* For many years, up until my arrest on Dec. 11, 2008, I operated a Ponzi scheme through the investment advisory side of my business, Bernard L. Madoff Investment Securities LLC.”

* “I am actually grateful for this opportunity to publicly comment about my crimes, for which I am deeply sorry and ashamed.”

* He added that he started the fraud during the recession of the early 1990s but that he believed it would be short and he could extricate himself. “As the years went by, I realized my risk, and this day would inevitably come,” he said in a steady voice. “I cannot adequately express how sorry I am for my crimes.”

* Madoff made a distinction between his investment business which was the fraud and the other businesses which he said were legit. “The other businesses were legitimate, profitable . . . in all respects and those businesses were run by my brother and my sons,” he said.

* He added: “My clients … receiving account statements had no way of knowing …” what he was doing.

Photo: Getty Images

Full post as published by Law Blog - WSJ.com on March 12, 2009 (boomark / email).