market making and, 40–41, 80, 82–84, 136, 199, 245
Markopolos accusations and, 122–25, 153–59, 162–66
marries Ruth Alpern, 33–35, 47
modern market shaped by, xxiv
Montauk beach house, 18, 69, 193, 226, 274, 305, 316
NASDAQ and, 80, 84, 86–87, 107–8
options trading not reported, 142
Palm Beach home and, 18, 109, 114, 183–84, 226, 274, 305
pension funds and, 127–32
Philoctetes speech of 2007, 179–80
Picower and, 63–65, 132–36, 161–62, 333
Picower settlement and, 330–31
Ponzi scheme of, and legitimate firm, 136, 152–53, 160, 251
Ponzi scheme of, described to federal prosecutors, 225–27
Ponzi scheme of, enabled by Wall Street, xxiv
Ponzi scheme of, seductiveness of, 339–40
Ponzi scheme of, size of, xxiii, 117, 180, 247, 260
prison interviews of, xvii–xx, xxii, 333–38, 344–345
reason for not fleeing, xxiii–xxiv, 339
relationship with brother, Peter, 48–50, 292–95
relationship with wife, Ruth, 288, 337–38
relationship with sons, xx, 285, 333, 338
returns of, 25, 38, 50–51, 53–54, 56, 67, 76, 80, 93–94, 112–13, 296
Roslyn house of, 47, 69–71, 167
SEC failures exposed by arrest of, 227–30, 272
SEC inquiries of 1992–2005, 152–56, 162
SEC inspector Kotz interviews, 270–72
SEC investigation of 1992 and, 94–104, 335
SEC investigation of 2003 and, 139–40, 145–46
SEC investigation of 2005 and, 139–46
SEC investigation of late 2005–6 and, 153–60, 162–66
SEC investigations of, revealed in 2009, 302–3
SEC shutdown of Avellino & Bienes and, 102
sentencing of, 273, 275–80, 332–33
SIPC liquidation and, 219–22, 235–37, 260–61
small investors and, 171–73
sole responsibility claim of, 225, 252
Sorkin as lawyer for, and conflict issue, 242–43
split-strike conversion strategy and, 74–76, 84–85, 94, 106, 112
suspicions of, 113, 117–29, 131–32, 134–35, 138, 141–44, 150–51, 176–77, 185, 188–89, 203–4, 231, 318, 333
synthetic trades by, and taxes, 85
third market and, 82, 108
trading strength affirmed, 118
travels to France, 179, 194
trust and credibility of, 28, 41–42, 48, 61, 63, 66–68, 82, 86–87, 89–90, 93, 112, 138, 175–76, 214–15, 343, 347
victim compensation and, 338
wealth and lifestyle of, xx, 69–70, 80–82, 136–38, 177–79
yacht and slip of, 177, 179, 239, 305, 318
Madoff, Deborah (former daughter-in-law), 284
Madoff, Marion (sister-in-law), 47
Madoff, Mark (son), 43, 47, 69, 82–83, 136, 152, 178, 230, 276, 288
accusations vs., 281–91
father’s arrest and, 4–13, 19, 230, 324
lawsuits vs., 285–7, 294, 321, 324
loans to, 161, 189–90, 198
suicide of, 321–23, 345
wife changes last name, 285, 321
Madoff, Peter (brother)
Cincinnati Stock Exchange and, 68
Cohmad and, 72
death of son and, 5, 135, 161
DiPascali and, 81
early life of, 31, 47
Engler and, 66
family redemption checks and, 335
gifts and loans to, 179, 181–82
hedge funds and, 178
lawsuits vs., 50, 292–95
London office and, 48, 69
Madoff confesses to, 5–8
Madoff’s arrest and, 14–15, 17, 22, 226, 230
Mark’s suicide and, 323
role of, in firm, 3, 47–50, 82, 86, 136, 152, 181
Madoff, Ralph (father), 30–31, 33, 35–36, 48
Madoff, Roger (nephew)
illness and death of, 3, 5, 135, 161, 285
Madoff, Rose (grandmother), 30
Madoff, Ruth Alpern (wife), 186, 276, 335
accusations vs., 281–84, 286–91
assets forfeited by, 230, 237–38, 274–75, 280–81, 288, 316–18
charities and, 3, 183
children and, 43, 47
criminal charges not filed vs., 274
early life of, 33–34
early work for firm, 26
family illnesses and, 135–36
feelings of, for victims, 252, 278
firm Christmas party and, 11–12, 182
friendships and, 67, 114, 148
lawsuits vs., 288, 294, 338
Madoff’s arrest and, 13, 15–17, 19–20, 226, 229–30, 237, 275
Madoff’s confession and, 6–9, 18
mails jewelry to family, 230, 238
Manhattan penthouse and, 81
marries Madoff, 33–35
son Mark’s suicide and, 323
stands by husband after arrest, 332, 337–38
year before arrest and, 3–4, 179, 184, 193–94
Madoff, Shana (niece), 17, 47, 73, 135–36, 179, 237, 294, 302, 323
Madoff, Solomon David (grandfather), 30
Madoff, Sondra (sister), 30, 47
Madoff, Stephanie (daughter-in-law), 189, 285, 322–23
Madoff, Sylvia Muntner (mother), 30–31, 48
Madoff family foundation, 135–36, 340
Madoff Securities International, Ltd. (London subsidiary), 21–22, 48, 68–69, 82, 136, 144–45, 168, 223, 239, 299, 319
Madoff victims. See also specific individuals
accusations by, vs. family, 290–91, 293, 295
accusations by, vs. Picard, 224, 263–64
attempt to sue SEC, 303–4
cash needs and huge losses of, 235–37, 255–56, 279
charities of, 340–41
claims payments to, 245, 259–60, 265–66, 311, 330–31
compensation fund alternative for, 264–67
Congress and, 240
DiPascali guilty plea and, 297–99
essays by, 311
feeder funds and banks sued by, 300–302
indirect investors as, 325–26
learn of fraud, xxi–xxii, 23, 210–16, 231–34, 236
listed, xxiii, 242–43
Madoff guilty plea and, 252–53
Madoff sentencing and, 273, 275–80
net equity (cash in, cash out) dispute and, 236, 247, 256–69, 305–9
net losers, 264–67, 269, 306, 318, 324, 327, 330
net winners, 260, 262–69, 305–6, 311, 313–14, 319, 324–25, 330
number of claims filed by, 304–5, 327
Picard as trustee for, 216–18, 242–47
Picower settlement and, 329–31
suicides of, 244
trust in Madoff by, 295–97, 346–47
Maertens, Maurice E., 202–3
Magellan fund, 60, 67, 106
Malkovich, John, 212
Manion, Ed, 122–25, 155
Manzke, Sandra, 129–32, 146, 319
MARHedge, 117
market making, 40, 41, 80, 82–84, 136, 199, 245
Markopolos, Harry, 122–25, 142–43, 153–57, 162, 173, 227, 233, 240–41, 271, 295
Massachusetts Institute of Technology, Picower Institute for Learning and Memory, 134
Massachusetts School of Law, 263
Massachusetts state securities regulators, 73
Maxam Capital, 146
Maxam Fund Group, 319
mergers and takeovers, 38–39, 64, 79
Meritor fund, 140
Merkin, Hermann, 110–13
Merkin, J. Ezra, 4, 110–15, 117, 120–21, 132, 137, 148, 168, 175, 202–3, 214, 235
Madoff lo
sses disclosed, 211
Merrill Lynch, 118, 167, 175, 191–92, 221, 271, 296
Bank of America merger, 194–95
middle-income investors, 125–30, 172–73, 195, 215–16, 257–58, 296–97, 307–8, 313
Mitterrand, François, 75
money market funds, 53, 195
Moragne, Maria, 15
Morgan Stanley, 118, 186, 192, 271
Morgenthau, Robert, 15
MorseLife Foundation, 191–92
mortgage default crisis, 177, 186–87, 193, 266, 301–2
mortgage derivatives, 177
Mukasey, Marc, 297–99
Muntner, Harry (grandfather), 30
Murdoch, Rupert, 89
Murray, Tim, 231
mutual funds, 42–44, 53, 76, 79, 106, 130, 142–43
NASD (National Association of Securities Dealers), 46, 142, 229
Board of Governors, 80, 86
regulation and, 46, 79, 83, 86–87
NASDAQ (National Association of Securities Dealers Automated Quotations), 46, 80, 176, 214
automation of, xxiv, 45–46, 68, 83–84, 116
crash of 1987, 83–84
Madoff as chairman of, 87
price-fixing scandal, 107–8, 178
tech-stock bubble, 116
Nash, John, 113
National Quotation Bureau, 26
new-issue market, 27–29
News Corporation, 89
New Times case, 261, 263, 307
New York City near bankruptcy, 63
New York City Center, 88, 183
New York Daily News, 212
New York Law School, 114
New York magazine, xx
New York Mets, 3, 88, 148, 212, 215, 265, 319, 340
New York Post, xx
New York State bankruptcy law, 256
New York State pension funds, 129
New York Stock Exchange (NYSE, “Big Board”), 24–25, 43, 49, 71, 82–83, 87, 118
New York Times, 57, 61, 242, 284, 319
New York University, 114, 202–3
Nierenberg, George, 252
Noel, Monica Haegler, 105–6, 109
Noel, Walter, Jr, 2–3, 89–92, 104–10, 166, 168, 174, 199, 202, 257
Nomura Bank International, 174
North Shore Long Island Jewish Hospitals, 137
Norton, Steven, 232
Oak Ridge Country Club (Hopkins, Minnesota), 67
Obama, Barack, 204, 213, 228–29
Ocrant, Michael, 117–19, 125, 131, 141, 144–45
Odyssey Partners fund, 113
O’Hara, Jerome, 309–10, 315
Old Naples Securities case, 261
Oppenheim, Appel, Dixon & Company, 167
OppenheimerFunds, 131, 167
Optimal funds, 150, 171, 178, 206–7, 211–12, 239, 255, 299
options trading, 75–76, 79, 81, 142, 170–71, 190–91, 196–97, 200
SEC investigation of 2005–6 and, 145, 157–59, 162–65
size constraints and, 93, 128
Ostrow, William David, 139–40, 143–46, 156
over-the-counter (OTC) market, 24–29, 49, 53, 67, 73, 163
automation of, 43–47
crash of 1987 and, 83, 86
Madoff losses of 1962 in, 28–29
price-fixing scandal and, 107–8
Pacific Stock Exchange, 39
Paul, Weiss, Rifkind, Wharton & Garrison, 9
Paulson, Henry, 193, 228
payments for order flow, 87, 92
pension funds, 24, 127–31, 171–73, 212, 215–16
Peretz, Martin, 213
Perez, George, 309–10, 315
Persico, Carmine, 332
Philadelphia Eagles, 4, 212
Phillips Nizer, 260
Philoctetes Center, 179
Picard, Irving H., 270
amount collected by, 305, 320, 327–28
assigned as Madoff trustee, 216–18, 222, 234–37, 239–40
claims approved by, 306, 327
clawback lawsuits and, 257–58, 266–67, 294, 311–15, 318–22, 324–25
feeder funds and, 300
foreign regulators and, 239
indirect investors and, 326
lawsuits vs. Madoff family by, 274, 288, 321, 322, 324
legal fees of, 246
net equity disputes and, 255–69, 304–9, 311
Picower suit and, 305–6, 328–30
victims’ lawsuit vs., 267–69
victims located by, 242–47
Picower, Barbara, 64, 133, 257–58, 305–6, 328–31
Picower, Jeffry M., 61, 63–64, 68, 74, 84–86, 92, 100–101, 133–34, 161–62, 184, 205, 333, 344
death of, 305–6
lawsuit vs., 257–58, 305–6, 311–12, 328–31
philanthropy of, 134, 340
withdrawals by, 132–36, 335–36
Picower Foundation, 211, 329
Piedrahita, Andrés, 108
Piedrahita, Corina Noel, 108
Pink Sheets, 26–27, 44–46
Pitt, Harvey, 327
Polaroid, 35
Pollard, Jonathan, 332
Ponzi schemes. See also Madoff, Bernard L.
Bayou Group exposed as, 147–49
bull markets and, 25
Chaitment suit and liquidation rules for, 260–62
defined, 29
derivatives, and, 155
lessons of Madoff scandal and, 341–47
number of, in 2008–9, 267
Wall Street theft from client accounts and, 93–94
“Ponzi Victims Bill of Rights,” 324
Popham Company, 58–49
preferred stock, 39–40
PricewaterhouseCoopers, 149
Primeo funds, 169, 171–72
Primex trading system, 118
Private Securities Litigation Reform Act (1995), 121
Prudential Bache, 108
Qatar, 171
Queens College, 114
Ramaz prep school, 111, 114
Rampart Investment Management, 122
Ravens social club, 32
Reagan, Ronald, 78–80
regional brokerage firms, 66
regulation. See also Securities and Exchange Commission; Securities Investors Protection Corporation; and specific firms and investigations
automation and, 42, 44–46, 49
deregulation and, 79–80, 86, 121–22
Europe and, 68
fixed commissions and, 65–66
hedge funds and, 104, 131, 172
history of, 28, 35–36, 42
investor protection and, 341–47