Prediction: Madoff isn’t the Cause of The Fraud

Okay, this is a bit controversial, I’m sure, but let’s look at the facts:

  1. There was a huge amount of paper generated in support of these schemes. This is an inordinate amount of work for a 70+ year old man to do. It requires technical know-how and all sorts of scale.
  2. Mr. Madoff confessed to his two sons.
  3. We all know about Madoff’s statements regarding regulators, and how fraud would be detected.
  4. This odd addition of Mr. Madoff’s niece marrying an S.E.C. agent into the facts, included in the S.E.C.’s own mea culpa.

Now, stop thinking like a rational person watching an elderly man confess. Mr. Madoff, if he was so deceitful this entire time, shouldn’t be taken at face value when it comes to his confession.  Think like this is a Law and Order episode. This is the first 5 minutes of the episode and the police have gotten a confession. Well, that means only one thing: the suspect will change to whomever the confession takes the heat off of. In this case, his sons. Is it more likely that his sons were running a scheme, with confidants, and tearfully confessed to their father? I don’t know. What I do know, however, is that a devoted father would probably protect his sons blindly. Couple this plausible scenario with the aforementioned ridiculous amount of work it takes to gimmick up the confirms and whatnot that were used to support the returns claimed by the firm, and those documents were extensive (see link above), and you seem to have a more reasonable explanation. Is it surprising the S.E.C. isn’t finding any evidence the children were involved? Uhhhh… they missed the entire thing to begin with, so no.

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2 Comments on “Prediction: Madoff isn’t the Cause of The Fraud”

  1. I too have wondered about this.

    Two observations that I have.

    1. Could he possibly be suffering from the onset of Dementia ? If so, that could explain why he confessed, not because he is guilty, but because he believes that the markets are one big ponzi scheme.
    2. The cameraman in the news I saw on CNBC last night that kept pushing him. Somebody needs to kick that camera man right between the legs, twice, once for the old man and twice for the rest of us as everybody deserves some respect and this is still a country where you are supposed to be innocent until proven guilty.


  2. […] Oh yeah, and the son of Madoff accountant David Friehling hurled water at a Fox News van, which is everywhere on the Internet right now. Why so angry? Maybe because last week, Dear John Thain suggested that 70-year-old Bernie Madoff could never have pulled off the whole Ponzi scheme all by himself. […]

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