All Blog Posts from Econwatch

Attention Mets fans: Feeling down after watching a Yankees-Phillies World Series? Need a little boost to get through a long offseason? How does owning Bernard Madoff's tattered but shiny plush Mets jacket sound? With "Madoff" sewn on the back, it's sure to be a hit from Wall Street to Citi Field.

The jacket is one of more than 100 seized items once belonging to the famous Ponzi schemer and his wife Ruth Madoff set to be auctioned to the public Saturday in New York. Other items include Madoff's Rolex watch, Mrs. Madoff's jewelry and furs, and a decoy duck.

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The will of Florida businessman Jeffry Picower, an associate of Bernard Madoff who was found dead in Palm Beach swimming pool last month, is expected to be filed today — and is bound to set off a tug of war over his assets, estimated to be far in excess of $1 billion.

As reported by Diana Henriques of The New York Times, Picower's estate (most of which is to go to charity) will be targeted by the trustee charged with reclaiming the estimated $21 billion in losses suffered by investors in Madoff's massive Ponzi scheme.

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The SEC inspector general is set to submit a report Monday detailing how the agency failed to uncover Bernard Madoff's multi-billion dollar fraud, according to a Fox Business report.

SEC inspector general H. David Kotz, seen left, started the probe in December after Madoff's massive Ponzi scheme came to light. Madoff is currently serving a 150-year prison sentence in a North Carolina medium-security facility.

For years, the SEC heard allegations of fraud but didn't take them seriously. Christopher Cox, who ran the agency at the time of Madoff's revelation, commissioned the investigation to figure out why.

Kotz didn't reveal the contents of the report, but told Fox Business that he would submit it to current SEC chairman Mary Schapiro Monday. The agency will determine when to make it public.

Back in January, Kotz told a congressional panel that his probe would be "independent and as hard-hitting as necessary" and vowed not to "hesitate to report the facts and conclusions as we find them."

By Marlys Harris of MoneyWatch.com.

Victims of Bernard Madoff's Ponzi scheme may have allowed themselves a rare smile on July 14, when the 71-year-old was locked up in a prison cell at a federal correctional center in Butner, N.C. His new neighbors behind the barbed wire include terrorist Omar Abdel Rahman, the "Blind Sheik" who masterminded the 1993 World Trade Center bombing, and John Rigas, the disgraced former CEO of Adelphia. Madoff, who reportedly was assigned to work in the prison's engraving shop, is scheduled to be released in 2136. In other words, barring a miracle, Bernie Madoff will never be free again.

But there won't be any real justice until investors recoup at least some of the estimated $65 billion he stole. In letter after letter to U.S. District Court Judge Denny Chin, who presided over the case, Madoff victims wrote of personal privations they had suffered: homes lost, newly destitute parents pressed to move out of nursing homes they can no longer afford, children forced to withdraw from college, people returning to work after years of retirement. Says Ronnie Sue Ambrosino, who with her husband Dominic lost $1.6 million: "Until we get our money, there is no justice."

Past victims of Ponzi schemes have historically recovered only pennies on the dollar, if anything. Often, bankruptcy trustees and other officials moved so sluggishly to recover stolen funds that the miscreant and his family had plenty of time to stash their gains offshore. In this case, however, bankruptcy trustee Irving Picard rushed to locate Madoff's money and to sue any beneficiaries of the fraud. To determine to what degree he and other officials keep faith with investors, I have taken it as my mission in the coming months (and years) to follow the efforts to recoup the money. You'll be able to read all about it here and in my blog, The Consumer Reporter.

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Sources tell CNN that disgraced investor Bernard Madoff met with Securities and Exchange Commission officials for three hours Wednesday.

Madoff reportedly met with SEC Inspector General David Kotz, but when asked about the meeting, would only tell CNN, "We've been making substantial progress in the investigation and plan to issue a comprehensive report very shortly."

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At least eight of Bernard Madoff's high-profile investors are under scrutiny by federal investigators attempting to unravel who knew what about the confessed scam artist's multi-billion dollar fraud, according to a Wall Street Journal report Monday.

Philanthropists Jeffrey Picower and Stanly Chais, among those being investigated, allegedly would tell Madoff how much profit they wanted on their investments. Those returns would soon materialize in their accounts, sources familiar with the probe said.

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The timely withdrawal of $12 billion from Bernard Madoff's client accounts may give wiped out investors hope of recouping some of their losses.

Some clients withdrew billions from their accounts the year prior to the financier's arrest on fraud charges – about $6 billion of which was pulled out just three months before Madoff revealed his elaborate Ponzi scheme, according to a New York Times report Wednesday.

Under federal law, Irving Picard, the trustees handling Madoff's bankruptcy, can sue to recover those funds. Picard's doing just that, filing two suits to retrieve $6.1 billion withdrawn from accounts over the last decade.

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Has a canary emerged in the Bernard Madoff fraud investigation?

A Fortune magazine investigation reveals that former Madoff deputy Frank DiPascali is trying to work out a plea deal with federal prosecutors which goes something like this: give me a reduced sentence and I'll tell you everything about the $65 million Ponzi scheme.

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There was another hint today that Bernard Madoff may not be the only perpetrator (or even the only Madoff) to be charged in connection with the $65 billion Ponzi scheme that sent him to prison.

According to Reuters, a Connecticut judge has issued a temporary restraining order freezing the assets of Madoff's wife, brother and sons, and other executives who worked in the Madoff firm.

Madoff said that he acted alone and so far only one other person (a Madoff accountant) has been charged in connection with the fraud. But prosecutors have confirmed to CBS News that Madoff relatives and associates are under investigation.

The restraining order comes in response to a lawsuit filed by the city of Fairfield, Conn.'s pension fund and is in effect until April 13. Madoff's brother Peter Madoff already agreed to have some of his assets frozen in December, according to his lawyer.

A construction worker from Queens, New York used Bernie Madoff's prison number to play the lottery and won $1,500, reports The New York Daily News.

Ralph Amendolaro, 50, noticed the digits under Madoff's mug on the front page of the Daily News the day after he pleaded guilty - 61727-054. He stopped at a corner store near his home on March 13 and played last three digits in New York State's "Numbers" lottery game.

His earnings -- which may be more than Madoff's other investors get these days -- was a $1,500 prize for $9 spent. That's a 16,000% return -- better than even what Madoff had promised.

Amendolaro told The Daily News he planned to hand a chunk of the cash over to his wife for a 50th birthday trip to Las Vegas with friends. He said he doubted that Madoff would be happy with his role in Amendolaro's good fortune.

"He'll probably want a cut."