Thursday, March 18, 2010

Bernie Madoff 's Face Gets Rearranged; He Is Giving Investment Advice

Bernie Madoff was beaten in December by a fellow inmate, according to WSJ. He suffered a broken nose, fractured ribs and cuts to his head and face.

Here's WSJ on the assailant:
Mr. Madoff's assailant was a beefy man serving time for a drug conviction. The alleged assailant's mother said in an interview her son had not mentioned any scuffle with Mr. Madoff but that he had been a body builder and held a black belt in Judo until he was injured in a shooting in 2002. While behind bars he has regained strength and gotten back into shape, she said.
When he isn't having his faced rearranged, Bernie is apparently giving investment advice:
Madoff advised [a fellow inmate] to diversify, saying he should invest in funds that track the S&P 500 index of stocks "where my money would be on all the stocks instead of putting my eggs into one basket," the former inmate said.

He said Mr. Madoff also warned him off of day trading. "I was trying to get into day trading and he's like, 'That's not for you. That's for individuals like me with millions to spare,' " he said.
Bernie obviously has no clue about the business cycle, since he is just telling this guy to plow into the S&P. I wonder if Bernie realizes how dangerous it is to give inmates tips? What if one of these guys acts on a Bernie's advice and loses money? Is he setting himself up for another face rearrangement?

1 comment:

  1. According to a long Wall Street Journal piece, he was allegedly beaten up in prison in December by another prisoner serving time for a drug conviction. He's also been seen socializing with a Colombian crime family boss, Carmine Persico.

    Meanwhile, court appointed trustee Irving Picard is suing Madoff's sons for $198 million, for dereliction of duty as his employees.

    The two sons, as well as Madoff's brother, are being charged with tax fraud.

    Altogether five others have been charged in connection with this scheme, two having pled guilty and the rest maintaining their innocence.(Lila: I'm not clear from the WSJ piece if the two sons are part of the five or in addition.)

    On March 17 (Wednesday) a federal grand jury also indicted Jerome O'Hara and George Perez, two programmers who allegedly developed the software that helped Madoff with his scheme. (More at Daily Finance).