Madoff Cursed by Victims Who Mourn Lost Savings, Blame SEC

I hope that when I die, people say about me, 'Boy, that guy sure owed me a lot of money.'
- Jack Handey

Madoff has ensured that one day people will be able to say that about him. The 150 years he received is symbolic. Give him 20 more years... tops... on the government "payroll" and Jack's quote will be applicable.

Madoff Cursed by Victims Who Mourn Lost Savings, Blame SEC

By Thom Weidlich, David Glovin and Patricia Hurtado

June 30 (Bloomberg) -- Bernard Madoff was called a “beast” and a “psychopath” by victims of his $65 billion Ponzi scheme who said their lives and their life savings have been ruined.

Madoff “discarded me like road kill,” said Miriam Siegman, of Stamford, Connecticut, who spoke yesterday at the former money manager’s sentencing hearing in Manhattan federal court. Nine victims told their stories to U.S. District Judge Denny Chin.

Madoff’s lawyer recommended a sentence of 12 years; the U.S. probation department recommended 50 years; and government prosecutors urged 150 years. Chin ultimately agreed with the government, meting out six times the penalty given the convicted chief executives of Enron Corp. and WorldCom Inc.

Madoff, 71, “shattered my dreams,” said Sharon Lissauer, a model who lives in Manhattan and told Chin that the New York financier destroyed her mother’s inheritance.

Victim Sheryl Weinstein, also of Manhattan, said she was a longtime friend of the money manager, calling him “a beast” for losing her investment. She said her son had worked for Madoff years ago.

The victims variously called Madoff “a psychopath” and “an evil lowlife.” Several of the victims broke down in tears as they spoke.

Widespread Stealing

“He stole from the rich, he stole from the poor and he stole from the in-between,” Tom FitzMaurice told the judge. “He had no boundaries.”

Madoff has shown “no remorse,” said victim Carla Hirschhorn, of Manalapan, New Jersey, at the hearing. She told Chin her life is a “living hell,” her mother is dependent on Social Security and her daughter works two jobs to pay tuition.

“Don’t fail us,” Hirschhorn told the judge.

After the hearing, some of the victims expressed mixed feelings about the latest chapter in the Madoff saga, saying they’re now more angry at the government than at Madoff.

One of those who spoke in the courtroom, Burt Ross, said he thought Chin “just hit it out of the ballpark.”

“I feel the judge was very thoughtful in his decision,” said George Nierenberg, a filmmaker in New York.

“I’m thrilled,” said Ilene Kent of Manhattan. “The judge sent a very clear message. I didn’t think it would be 150 years.”

Enablers

Siegman called the regulators and legislators who called for deregulation of the financial system Madoff’s “enablers,” and said the Madoff sentencing isn’t going to change things.

“If the American public is satisfied with this sentence and think it’s going to protect then, God help them,” Siegman said. “The important thing is that the American public and the general public understand that this will happen again and again.”

The victims held a rally in Foley Square across from the platform, holding signs that read “Where was The SEC?” “Do YOU know where YOUR money is?” and “SIPC = SCAM,” against the backdrop of a 60-foot-tall black sculpture called “Triumph of the Human Spirit” by Lorenzo Pace.

“The SEC and SIPC failed to protect us,” Richard Friedman told the crowd, referring to the U.S. Securities and Exchange Commission and the Securities Investor Protection Corp. “They will fail to protect you too.”

The rally was organized to bring attention to the government’s failure to protect investors because it isn’t enforcing the laws, Stephanie Halio, a Madoff victim, said in an interview. “They have to clean up their act.”

SIPC has been too slow in getting money to victims, said Stanley Hirschhorn. “The word has to get out that SIPC is a scam.”

“It’s great that he got the maximum sentence and he’ll be there for life, but most of us victims don’t even talk about Madoff,” Jesse Cohen said in an interview at the rally.

The case is U.S. v. Madoff, 09-cr-00213, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporters on this story: Thom Weidlich in New York federal court at tweidlich@bloomberg.net; David Glovin in New York federal court at dglovin@bloomberg.net; Patricia Hurtado in New York federal court at pathurtado@bloomberg.net.