Legal Commentary

Sentencing Day for Bernie Madoff

By Jeralyn

Bernard Madoff will be sentenced today. The government is seeking 150 years. The defense is seeking 12 years, arguing that considering his age, it's an effective life sentence. Ruth Madoff has agreed to forfeit around $80 million (including the Park Ave coop, the Montauk home and the Palm Beach home) in exchange for $2.5 million.

Here are the relevant pleadings:

• Bernie's response to Government sentencing position
  
• Government Sentencing Position
• Bernie's Sentencing Position
• Ruth Madoff Forfeiture Agreement

The judge also granted a request by Bernie's lawyers to have clothing brought to the jail for him to wear at sentencing. So you can expect him to look dapper (unless he's lost a lot of weight.) Some victims will get a chance to speak. He will apologize. His family (wisely in my view, for their own sanity given the press and victims in attendance) won't attend.

I think the Government's position is absurd. But, given the mass hysteria over the case, I suspect his sentence will be a lot higher than 12 years. [More....]

Pro Publica (via MSNBC) reports Madoff may not have been the primary beneficiary of his scheme: a client named Jeffry Picower allegedly withdrew $5.1 billion from accounts with Madoff.

All in all, the sentencing should be quite satisfying for those who want their pound of flesh. Personally, I don't see how any financial crime justifies a life sentence. In fact, as I wrote at the time, I don't even get why Madoff pleaded guilty. What more could they have done to him if he had gone to trial and lost? At least he would have had another year or two of liberty while on bond. He didn't even get an agreement not to prosecute his family members.

And I'm equally appalled by the sentences Enron's Jeff Skilling, WorldCom's Bernie Ebbers, and Adelphia's John Rigas received. In additon, just like the death penalty, these huge sentences don't seem to be much of a deterrent to others.

Bottom line: As I wrote at the time he agreed to plead guilty:

My prediction: Madoff will go to jail Thursday, never to be released again. And, no matter how much money the government forfeits, not every victim will be made whole.

Full post as published by TalkLeft on June 29, 2009 (boomark / email).