US - Madoff verdict

Fraudster gets 150 years in jail

Article published on the 2009-06-29 Latest update 2009-06-30 10:54 TU

Media gathering in front of the US courthouse ahead of Bernard Madoff's sentencing, 29 June 2009.
(Credit: Reuters)

Pyramid scammer Bernard Madoff was sentenced to 150 years in prison by a federal judge on Monday after he bilked investors all over the world to the tune of 170 billion US dollars. Madoff, 71 has spent the past four months in prison awaiting trial and sentencing after admitting to 11 charges of fraud and perjury.

"I leave a legacy of shame to my family. I am responsible for a great deal of suffering and pain. I live in a tormented state," said Madoff in court on Monday.

Madoff apologized to his victims, and turned in court to face some of the victims who attended the sentencing. "I am sorry," he said, adding that he could not justify his behaivor. "I don't ask for forgiveness."

"How do you excuse deceiving investors... and 200 employees? How do you excuse lying to my sons and two brothers? How do you excuse lying to a wife who stood by you for 50 years and still stands by me? There is no excuse for that," he said in court.

Madoff's lawyer had argued for a 12-year sentence because of Madoff's 'advanced age'. The prosecution instead sought 150 years in prison for cheating his victims, which included Jewish organisations that were forced to close, and Hollywood stars.

Two people, French investment banker Thierry de la Villehuchet and British soldier William Foxton, were so distraught over the state of their portfolios in Madoff's supposed care they killed themselves.

Others, including smaller, ordinary investors, were wiped out, including the elderly. Many have filed bankruptcy.

Madoff testified back in March that his pyramid scam that spanned 30 years had nothing to do with investments on the stock market at all. Instead he had placed the funds in a bank account and paid off "dividends" to investors from new investors' money.

US District Judge Denny Chin has ordered that Madoff hand over 170 billion US dollars in illegally obtained total assets. This sum represents all of Madoff's assets, including real estate, investments, as well as cars and boats.

The scandal has also affected Madoff's wife, Ruth, who has been ordered to hand over 85 million US dollars in assets, leaving her with 2.5 million to live on.