SEC, Madoff Reach Civil Fraud Case Deal

Settlement Could Eventually Force Disgraced Money Manager To Pay Civil Fine And Return Money Raised From Investors

(CBS/ AP)  The Securities and Exchange Commission on Monday announced an agreement with disgraced money manager Bernard Madoff that could eventually force him to pay a civil fine and return money raised from investors.

The partial judgment must be approved by the judge overseeing the Madoff case in federal court in Manhattan.

The civil proceeding is separate from the criminal case against the prominent Wall Street figure, who is accused of bilking $50 billion from investors in what may be the largest Ponzi scheme in history. Madoff was arrested in December after allegedly confessing to his sons that he had stolen from investors for years.

Federal prosecutors have asked a judge to revoke the bail of Madoff, who has been confined to his Manhattan penthouse under house arrest. Madoff, who has not been indicted, is widely expected to eventually enter into a criminal plea deal with prosecutors.

The agreement with the SEC says the agency's civil fraud allegations cannot be contested by Madoff and that possible civil fines and restitution will be decided "at a later time."

The allegations, as laid out in the SEC's civil lawsuit filed on Dec. 11, are that Madoff committed a $50 billion fraud and told his sons his investment business was a sham. Madoff told them he had "absolutely nothing," that "it's all just one big lie," and was "basically, a giant Ponzi scheme," according to the SEC suit.

The fallout from the Madoff affair has been massive and has rocked a Wall Street already churning from the financial crisis. Thousands of victims who lost money investing with Madoff have been identified - including ordinary people and Hollywood celebrities - as well as big hedge funds, international banks and charities in the U.S., Europe and Asia.

The scandal also has brought disgrace to the SEC, which repeatedly ignored credible allegations about Madoff's operations brought to it over the course of decade. Congress and the agency's inspector general are investigating what caused the regulatory failure over Madoff and why SEC inspections of his business failed to detect the improprieties.

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List of Bernie Madoff's Clients

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Palm Beach was especially hit hard by the Madoff scandal, reported CBS News correspondent Kelly Cobiella last week.

"This is the epicenter of it," said Larry Leamer, who writes about Palm Beach society. He said investing with Madoff was the ultimate sign of status.

"There was a club within the club and that was the club in this country club that invested with Bernie Madoff," Leamer said. "If you're not with him, you're a loser."

Today, million dollar homes are quietly going on the market. So are the items from inside those homes - at estate sales.

You wouldn't know it strolling by the glitzy stores and exclusive restaurants in Palm Beach, but the impact of the Madoff scandal goes beyond the bank accounts of a few hundred millionaires.

A local non-profit health center for seniors lost $10 million investing with Madoff. And the Palm Beach County School district is out $1 million because a donor can no longer afford the donation.

"This is not just a bunch of spoiled rich people who can't have their bottle of champagne that day. these are conservative, philanthropic, giving people," said Susan Markin, a former Palm Beach council member as well as a Madoff neighbor and victim.

Asked what she thinks should happen to Madoff, Markin replied, "I can't say it on camera."

Madoff's Florida home has been vandalized twice since his arrest.

[sockpuppet4]

I would be pleased to see financier Bernard Madoff get off Scot free. I would like to see him keep his home and money and all charges dropped.

Financier Bernard Madoff has become a FOLK HERO of sorts for me. In all this darkness he has become a small ray of joy for me. I have gained some pleasure from his antics.

Financier Bernard Madoff has done to the RICH what the RICH have done to the working class.

Financier Bernard Madoff should be able to walk and enjoy life no less than Former President George Bush. The George Bush who scammed and twisted all things moral and good for personal gain for himself, his family, and his friends. The George Bush responsible for all the pain and agony going on in the United States and all places on this globe. It would be much more fitting to see the Bush/Cheney team, and all their cohorts facing life in prison than it would be to see what is going on with this one rogue man.

Yes, financier Bernard Madoff has become a modern day FOLK HERO and should be set free. He is no less of a wholesome figure than Robin Hood, comparatively speaking.

VIVA LA FINANCIER BERNARD MADOFF !

May his victims rot in hell.

[blbtampa]

Follow the money see who/which party Bernie Madoff donated to:
http://www.newsmeat.com/fec/bystate_detail.php?zip=10022&last=MADOFF&first=BERNARD

[joepack61]

One bright spot is that Linda Thomson, the SEC enforcement chief since 2005, resigned today. Now they need to get rid of the other four SEC losers who were ridiculed at the Senate hearing.

[impeach_o]

All the USA Presidents answer to a higher authority.. ISRAEL.


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Posted by donevis at 10:57 AM : Feb 10, 2009
+ report abuse

***********your ranting is as old as the pyramids***

[impeach_o]

And WHO was president in 2000 when this "tip" came in to the SEC???



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Posted by no_mercy_66 at 01:27 PM : Feb 10, 2009
+ report abuse

********

and guess who is president that WOULD ALLOW THESE CRIMININALS TO WALK AWAY...

[spiritwalk]

If enough reporters keep picking at this they are going to find this is going to be more like the Vatican Bank scandal than just a ponzi scheme.
There are going to be not just people and banks involved but countries as well.
We already know that the SEC was stunningly "negligent" in following up on tips that wee reported and those are only the tips rom whistleblowers we know about. There were probably a lot more tips from people who are afraid of dying of mysterious circumstances like with the Vatican Bank. In that case. some people even believe John Paul I was killed to cover that up, so nobody would be safe.
Keep picking at it and people are going to start to die off before they can tell what they know.

[donevis-2009]

Now WHOOOO was the president in 2000???? Oh golly, I keep forgetting....
Posted by no_mercy_66 at 10:16 AM : Feb 10, 2009

All the USA Presidents answer to a higher authority.. ISRAEL.

[jtdev1]

The fast deal is necessary in order to continue to hide the other people who are involved with this scheme.

There is NO WAY this is a 1 man job, Bernie didn''t do this alone and is taking full responsibility in order to protect the others that were involved...

For anyone to think anything different is to be very stupid.

[hairyonetooo]

Read Henry Ford''''s "The International Jew... The World''''s Foremost Problem." The Jew is the problem.
Posted by usafirst1 at 06:55 AM : Feb 10, 2009

That''s the same thing Hitler said and the KKK!!

[hunterdon6]

He has most of the money hidden. The government will never find it. He has hurt thousands of investors who are now bankrupt, and he gets a slap on the wrist. He should be hung in the courthouse square for all to see. If it was you or I who shoplifted a 50cent item from a store, we would be in jail!

[hairyonetooo]

I knew that he and his good buddies at the SEC(the Wall Street Cheering Society) would work out a deal and he''ll walk with time served while out on bail!!

[donevis-2009]

5 different reports on the radio about A Rod this AM, none about Madoff. What great news sources we have, they''re leading us around treating us like mushrooms. Kept in the dark and fed manure.

[bwlewis1964]

This sounds like the white glove treatment, jails
is for poor whites and minorities only.

[HeroicLife]

The case of Bernie Madoff is a typical case study in how the SEC encourages fraud. Investors figured out that Madoff couldn%u2019t possibly make the profits he claimed, and have been writing the SEC since 1999, urging them to put a stop to Madoff%u2019s Ponzi scheme. However, Madoff used his close family ties to the SEC, and was instrumental in founding key regulatory bodies - and then nominated his family members to serve on their boards. When skeptical investors inquired about the irregularities in his fund, Madoff told them that the SEC had already investigated and cleared him over a period of three years.

While Madoff stole $50 billion dollars under their noses, the SEC%u2019s budget surpassed $900 million dollars, and grew at record rates during the two Bush administrations. In response to this outrageous case of nepotism and corruption, the government will likely increase its budget and staff once again

http://oneminute.rationalmind.net/the-one-minute-case-for-abolishing-the-sec/

[gce65]

CIVIL???????????????

SIEZE ALL HIS ASSETS, ALL HIS WIFE''S ASSETS, ALL HIS EXTENDED FAMILY''S ASSETS AND BURN HIM AT THE STAKE!

[perk235]

madoff is scum allowed to accumulate in our system after 12 yrs. repub financial de-regulation efforts headed by ex-Sen. Phil Gramm (nation of whinners).
Posted by neoconRcrazy at 03:45 AM : Feb 10, 2009
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Agreed. Phil Gramm sponsored in the Gramm/Leach/Bliley Act that deregulated financial institutions and co-sponsored the heinous Commodities Modernization Act that deregulated derivatives.

When was the last time we had a Republican House, Republican Senate and Republican President? The deregulatory era leading to the Great Depression I.

Derivatives haven''t finished blowing up yet and are anywhere between $60 - 600 TRILLION dollars. Derivatives sidestepped being labeled as "insurance" because that would have forced them to be regulated. Rather, they called them "swaps" and gave us Enron, Lehman Brothers and a world-wide economic crisis that isn''t over yet.

[neoconrcrazy]

madoff is scum allowed to accumulate in our system after 12 yrs. repub financial de-regulation efforts headed by ex-Sen. Phil Gramm (nation of whinners).

shalom

[scallywag8]

News flash: Madoff Paidoff to takeoff and layoff.

[jetranger7]

Ohh his Home was Vandalized, how Sad- why that just isn''t right now is it. He should be glad it was just Vandalized- because if it was me - it wouldn''t even be standing, there would be nothing left, nothing, then, I''d think about going and playing "Mechanic", ever see that Movie- with Charles Bronson and Jan Michael Vincent- back in 1972, called the Mechanic- well go rent it and watch it then you''ll know !!!!!!!

[spiritwalk]

Madoff already has a deal?

So now there will be no trial and Madoff won''t be naming anybody else involved?

How high up does this go? If it had of been Clinton, Bush would have dumped it on him when this broke. It''s the Obama watch now that is cutting the deal, not Bush or Clinton. Everybody is covering this up.

Something is very wrong here!!!