The Madoff Mess

By now you've probably heard or read about Bernard Madoff.
Over several decades, he built Madoff Investment Securities into a financial empire.
According to the Associated Press, Madoff's
wealth allowed him to live a lavish lifestyle — acquiring a $7 million
apartment on the Upper Eastside of New York, homes
in Palm Beach and the Hamptons and a villa in the South of France.
Madoff owned several boats, had memberships in
exclusive country clubs and even had a share in a corporate jet.

But his financial empire was built on a card of lies. He was a fraud.
It was revealed that Madoff ran a Ponzi scheme: a financial
operation in which money from new investors is used
to pay earlier investors. Basically, robbing Peter to pay Paul.

Madoff scammed more than $50 billion from investors.
Director Steven Spielberg, Mortimer Zuckerman, editor in chief of U.S. News
& World Report and Nobel Prize winner Eli Wiesel, were among his victims.

But many of Madoff's victims were not millionaires or part of
elite society. A good number were foundations,
charitable organizations and just ordinary folk looking to put away
funds for retirement, kids' college savings and emergency situations
such as medical bills.

Some people lost everything. A 95-year-old grandmother
lost her life savings and now has to rely soley on
Social Security. A recently retired couple now wonder how they're going to pay
their bills until they find jobs again. Charitable organizations and foundations
have had to close down and layoff hundreds of employees right before the holidays.
These groups supported homeless shelters, schools, senior citizens-
basically the displaced, the deprived, the disadvantaged.
And most recently, one of Madoff's victims, french billionaire Rene-Thierry Magon de la Villehuchet committed suicide after losing $1.5 billion of his clients' money in
the Madoff fraud.

In the meantime, Madoff is on house arrest - laying low in his $7 million Upper Eastside
apartment.

What do you think should happen to Madoff?
Do you think victims of his scheme should be able to recoup their losses?
If so, how?
Should the government intervene?

Maybe grandma was right. The best place for money is under the mattress.