Inmate: Madoff Has $9 Billion Hidden Away (Somewhere)

Finally, it takes a prisoner to claim what everyone suspected—that Bernard Madoff has billions stashed away somewhere unbeknownst to the feds (so far). The Post reports, "Ponzi king Bernard Madoff is telling fellow jailbirds that he secretly funneled $9 billion in swiped funds to three people before he was nabbed, an inmate told [the paper]. Madoff says that his partner in crime Frank DiPascali knows who the recipients are -- and that he suspects DiPascali is using that information to cut a better deal with the feds, according to the inmate at the medium-security prison in Butner, NC."

The inmate/sudden expert on Madoff money believes the money was shifted to "personal friends." DiPascali, who faces 125 years in jail if convicted on all charges and can allegedly "pull the curtain back" on the scam, has been cooperating with the authorities.

The inmate also spills details on Madoff's life while serving his 150 year sentence at Butner Correction in North Carolina. For instance, he's seeing a prison psychiatrist ever since his former mistress spilled the TMI details of their affair. Madoff's wife Ruth wasn't too happy hearing about the infidelity but still visits him; the inmate said, "She's bought a regular car"—what about the F train—"She's looking to do charity work. She wants to have her own privacy and to start a new life."

Madoff's sons remain estranged, though the Ponzi schemer "feels eventually -- eventually -- as time passes, he feels they're going to come around," according to the inmate. Other details: The inmate claims Madoff broke out into hives upon entering prison, he plays boccie with Colombo crime family boss Carmine Persico, and has to carry dozens of cans of soda to other inmates during commissary duty. The inmate adds, "Everybody knows Bernie Madoff. Everyone says, 'Hey, Bernie, how are you doing?' To a lot of inmates, he's a god... The higher the profile, the more they look up to you."

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on June 21, 2010 11:17 AM

Comments [rss]

Dan

In the interest of levity, I wrote a song about the Madoff scandal. Though it attempts at humor, it is not intended to belittle the seriousness. Rather, it is to spread awareness to the mainstream of the population of the dangerous lack of regulation of our financial markets. You can listen to it here.

John L

A few weeks ago I remember reading about Bernie Madoff laughing in prison about his victims. He's laughing because he got away with the crime of the century and make no mistake, he got away with it. This man reportedly stole $65 billion dollars, not millions but billions, and where is it? I don't care if he ate bars of gold for breakfast, lunch & dinner, there's no way that these billions just disappeared and there's barely any assets left for the victims to recover. Do you realize how hard it is to spend $65 billion dollars and not have at least $30 Billion in assets? Sure they're selling a few homes, yachts, cars, whatever but it doesn't come close to the $65 billion dollars. The real estate he bought appreciated, he has cars but even the most expensive car in the world costs less than $2 million. So where is it? Where's the stash? It's somewhere probably in some offshore account or a in Swiss account, the point is that it's somewhere and since the US government wanted to settle this so quickly that they gave him a plea deal and never made him give up the money or who ever else was involved. Even his sons, which undoubtedly were co-conspirators got off. No one really believes they turned Daddy in without a heads up that they were already coming for him, right? So yeah, Madoff is still laughing because we got away with the crime of the century, he stole $65 billion and made it disappear into thin air.

John L

Bernie Madoff is laughing because he got away with the crime of the century and make no mistake, he got away with it. This man reportedly stole $65 billion dollars, not millions but billions, and where is it? I don't care if he ate bars of gold for breakfast, lunch & dinner, there's no way that these billions just disappeared and there's barely any assets left for the victims to recover. Do you realize how hard it is to spend $65 billion dollars and not have at least $30 Billion in assets? Sure they're selling a few homes, yachts, cars, whatever but it doesn't come close to the $65 billion dollars. The real estate he bought appreciated, he has cars but even the most expensive car in the world costs less than $2 million. So where is it? Where's the stash? It's somewhere probably in some offshore account or a in Swiss account, the point is that it's somewhere and since the US government wanted to settle this so quickly that they gave him a plea deal and never made him give up the money or who ever else was involved. Even his sons, which undoubtedly were co-conspirators got off. No one really believes they turned Daddy in without a heads up that they were already coming for him, right? So yeah, Madoff is still laughing because we got away with the crime of the century, he stole $65 billion and made it disappear into thin air.

longacre

$65 billion is the total amount his victims thought they had based on the phoney statements Madoff's firm would mail them every month. The actual amount the victims handed to Madoff was far lower.

henryhamilton

Nobody ever admits to anything like that in prison. Even a relative newbie like Bernie Madoff would know better. Your inviting someone to rat, or shake you down for "protection" money. I call total SHENANIGANS.