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Saturday, March 14, 2009

Madoff Pleads Guilty, Jailed

From the Hoss's Mouth

Hoss Cents Free Financial Money Magazine is ecstatic that U.S. District Court Judge Denny Chin revoked Bernard Madoff's bail (for details see Madoff remains free on bail). Madoff, who engineered the largest Ponzi Scheme in history, pleaded guilty to all eleven charges against him:

• Securities fraud
• Mail fraud
• Wire fraud
• Investment adviser fraud
• Three counts of money laundering
• False statements
• Perjury
• False filing with the Security Exchange Commission
• Theft from an employee benefit plan

Madoff Jailed

Judge Chin ruled that Madoff not only had the means to flee, but also an incentive to do so. Madoff's lawyers indicated they will appeal this decision, but The Hoss believes Judge Chin is correct to jail Madoff.

Madoff admitted he never invested the funds in securities as he had promised and told investors. He also admitted to lying to the Security Exchange Commission when they questioned him.

Reports indicate that to date the firm's bankruptcy trustee has located about $1 billion in cash and securities. This is nowhere near the estimated $65 billion owed investors.

"I am actually grateful for this opportunity to publicly comment about my crimes, for which I am deeply sorry and ashamed," Madoff said in a public statement.

Three investors spoke at his hearing, and not once did Madoff look them in the eye. In fact he did not look at them at all.

The Hoss wonders if anybody out there believes Madoff could have pulled off such a huge scam without the help of others. Of course not, yet Madoff refuses to co-operate with investigators. He will not implicate his subordinates or relatives, one who worked with the Securities Exchange Commission at the time of his questioning.

Hoss Cents Free Financial Money Magazine sincerely hopes that this fraud, and others now being discovered, will encourage the authorities to improve and enforce stricter regulations.

Stay on track,

The Hoss

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