As more info comes in regarding the Madeoff scheme, news from several sourcesA whistleblower. And you may recall that pressure has increased on Swiss banks to ditch some of their notorious secrecy rules because they facilitate tax evasion and corruption. So it makes sense that a whistleblower might come forward about now, as the game is changing anyway.
say that Madeoff and his clients were the largest bank account holders listed
on a computer disk leaked by a Swiss bank worker regarding US persons with
hidden Swiss bank accounts.
As the IRS approached him regarding the repayment of taxes from his hidden
swiss account, Madeoff reportedly became admamant that his wealth would not be
taxed by the US. He also realized that once the swiss records were exposed
that his and his client's wealth were also within reach of seizure or
judgement by a US court regarding past frauds of him or his clients.
Realizing that he was be certain to arrested on other securities and market
making fraud issues in the near future, insiders say that it was at this point
he made the decision to just say it was all lost in trading and move it
directly to Israel. Insiders also report that he was ready to pay the taxes on
the money in Israel but was adamant that taxes in the US would not be paid nor
would any of the money be available for US court judgements in subprime,
fraudlent trading and misrepresentation charges in the future.
So Madoff is adamant not to pay US taxes, but he is ok with paying taxes in Israel. He sounds like a Talmudic Jew.
Sources say that most of his and his clients wealth were gained through
issuing subprime mortgages to unqualified borrowers and then tranching the
mortgages into CDOs and circulating the CDOs among US pension funds including
GM, GE, IBM and Califorina's State pension fund. Some of the wealth was also
gotten through investments in Vegas housing sub divisions and Miami condo
projects at the height of the real estate bubble.
Finally, sources say that the wealth from Madeoff's has been fully transfered
to Israel and that "most if not all of the clients have been made aware" that
their money is available to them in Israel and that it was felt that this was
a necessary measure in protecting certain high level clients in the face of a
collapse of the USA.
They're all set. That's all that counts. The rest of the article confirms this point. Madoff and his investors show utter contempt for the citizens of the US.
And naturally, a judge stepped in right away to help all the poor wealthy victims of Madoff's "fraud." That's right. We can't have any wealthy investors or their pet money laundering causes losing any of their dollars. That's what you are for, American Citizen: to keep rich people whole.
And all Madoff has to do is plead guilty to "fraud," and everyone is happy in the end. Except you, but you don't count, Bubba. That's why Madoff is "the nicest guy in the world," see? He's the Scooter Libby of 2008 -- taking one for the team. A real hero, that Madoff.
So why plead guilty? The answer is simple. Look on the net and you will see that because this case is being labelled a fraud, it would appear that investors are going to be able to claim their investment back under the US government's financial fraud protection scheme. A judge has already given his approval in principle for compensation, w ithout any evidence having been presented and financial fraud being demonstrated in a court of law. And it would appear that there will never be such a demonstration in a court of law. Why? It would appear that all the funds financial records are mostly "missing" (rather like Dov Zakheim's US$1.4tn) and those few records that do survive are in a terrible mess.
However, since the guy has pleaded guilty we do not need to demonstrate the fraud, because he says he is guilty.
And look further on the net and you will see that these "victims" have also been told by the US tax authorities that they will probably also be entitled to claim back some taxes on these defrauded sums.
Rather than saying this hedge fund has gone bust, due to its choice of investment assets and investment methologies, a scenario which is highly probable in the current financial paradigm, since all the professionals are predicting that at least 30% of all hedge funds are about to fail, more than 700 of them, the CEO chooses to fess up to fraud. If the CEO admits the fund has gone bust, then all those wealthy members of the Jewish community get nothing, but if the CEO admits to fraud they get their money back as compensation from the US tax payer, just as they are also drawing money back from the tax payers with the other hand.
And, as can be seen at the Daily Mail link above, the investors in this fund only get to litigate the fund directors against Lloyds insurers in London for even more compensation. Done properly the compensation could end up paying out far more than the original fund returns (yes this is sarcasm, it was bound to creep in eventually in yet another swindle like this).