Was Bernie Madoff a Mafia Front?

madoff

The Wall Street Journal is very careful with the libel laws, but I am increasingly confident that their reporters are beginning to sense that organized crime sits somewhere in the Bernard Madoff Ponzi scheme. The tipoff come from their classic tabloid use of the “made man’s” street name in quotes (like Benjamin “Bugsy” Siegel). The main feeder fund to Madoff was Cohmad Securities.

Cohmad, a conjunction of the last names of investor Maurice “Sonny” Cohn and Mr. Madoff, carried especially tight ties. Cohmad was filled by employees with long-term or family relationships with the Madoffs, and its operations were enmeshed in the main Madoff businesses, interviews and records show.

Maurice “Sonny” Cohn and his associate Alvin “Sonny” Delaire have both been accused of playing fast and loose with securities regulations. As anyone who has watched Godfather II, Meyer Lansky’s great dream was to get “legit”–to move dirty money into clean securities. I have already written about how no one has come forward to make a claim on much of the money the flowed to Madoff from South America. If the whole scheme was some vast money laundering operation, then the actual investment return part of it was less important to many of the customers. According to an SEC complaint, Madoff maintained two bank accounts at JPMorganChase and three at Bank of America Mellon. At the end of every reporting period, Madoff’s CFO  Frank DiPascali, reportedly converted its holdings to cash equivalents, i.e. treasury bills, to avoid SEC disclosure requirements. This should have been a tip off to the SEC. In 1996 Business Week had a cover story that uncovered much of the mobs activity on Wall Street. They thought all the action was in small cap stock manipulation. If my hunch is right, they had no idea that a $50 Billion scam could be pulled off.

Just about the time that Madoff’s scheme started up, the notorious Bank of Credit and Commerce International (BCCI) went out of business.

BCCI became the focus in 1991 of one of the largest scandals in world financial history. Due to the massive fraud and corruption at the heart of the bank, it was described as a “$20-billion-plus heist”.[3] Regulators in the United States and the United Kingdom found it to be involved in money launderingbribery, support of terrorism,[4] arms trafficking, the sale of nuclear technologies, the commission and facilitation of tax evasionsmugglingillegal immigration, and the illicit purchases of banks and real estate. The bank was found to have at least $13 billion unaccounted for. The bank’s relationship with underworld elements led to the nickname “Bank of Crooks and Criminals International.”

With BCCI closed down, maybe Bernie and his partners saw a market opportunity. The fact that a lot of innocents got caught up in the scam is probably less important than who was getting their money out in the last nine months of Madoff’s scam.

My guess is it was the Goodfellas.

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0 Responses to Was Bernie Madoff a Mafia Front?

  1. Rick Turner says:

    My old friend, Bob Thomas (creator of the Grateful Dead’s logo…) was in Palermo, Sicily being his street musician self, playing zamogna, the Italian bag pipes. A gentleman came up to him and said, “We like you fellows, but just understand that there is no Mafia, and we don’t make jokes about them…” Some months later and back in the ‘States, Bob had to go to traffic court for some minor offense. The judge said, “Mr. Thomas, I presume you have insurance.” To which Bob replied, “You honor, I am completely covered by Mutual of Palermo…”

  2. Rick Turner says:

    My old friend, Bob Thomas (creator of the Grateful Dead’s logo…) was in Palermo, Sicily being his street musician self, playing zamogna, the Italian bag pipes. A gentleman came up to him and said, “We like you fellows, but just understand that there is no Mafia, and we don’t make jokes about them…” Some months later and back in the ‘States, Bob had to go to traffic court for some minor offense. The judge said, “Mr. Thomas, I presume you have insurance.” To which Bob replied, “You honor, I am completely covered by Mutual of Palermo…”

  3. Dan says:

    Now paste in a picture of dead bodies in Tijuana and we have the complete circle of life. Coca fields to processors to gangsters to billionaire to bank to the grave. Sunrise sunset.

  4. Dan says:

    Now paste in a picture of dead bodies in Tijuana and we have the complete circle of life. Coca fields to processors to gangsters to billionaire to bank to the grave. Sunrise sunset.

  5. Rick Turner says:

    Just legalize it and make it available by prescription. End of gangsters, and I doubt that any more people would do drugs than already do. Most of my friends who used to smoke pot or snort coke do not do so now by choice. Nobody is influenced by the illegality of doing drugs. Ultimately the shit makes you feel bad. That’s why not to do it.

  6. Rick Turner says:

    Just legalize it and make it available by prescription. End of gangsters, and I doubt that any more people would do drugs than already do. Most of my friends who used to smoke pot or snort coke do not do so now by choice. Nobody is influenced by the illegality of doing drugs. Ultimately the shit makes you feel bad. That’s why not to do it.

  7. Davaudian says:

    Yes, and prohibition always brings this vermin into the game….circa 1927 Chicago blood baths, Joe Kennedy’s rise to fame, etc. Take the illegal out, put it back in the drugstores and watch demand fall. I mean ,the worst drug is nicotine.

  8. Davaudian says:

    Yes, and prohibition always brings this vermin into the game….circa 1927 Chicago blood baths, Joe Kennedy’s rise to fame, etc. Take the illegal out, put it back in the drugstores and watch demand fall. I mean ,the worst drug is nicotine.

  9. JTMcPhee says:

    Don’t forget The Original Prohibition Drug, ETOH (what “we” will be making even huger amounts of by diverting food crop land into corn production to make “corn squeezin’s” to fuel our Chryslers. Using more energy and other scarce resources than the burning of alcohol produces. Who says “we” are stupid?)

    Do I remember a novel based on the idea that some Scientist had developed a couple of strains of mosaic virus that could be spread around pretty easily and that would kill off coca and poppy plants everywhere? And then all the skuldggery and shoot-em-up and chase scenes that followed, with governments, warlords, military, “intelligence services,” police forces, and of course the “invisible economy that doesn’t exist” pulling suddenly on the same end of the rope to kill off the Scientist and the bugs and any knowledge related thereto?

    Or did I just make that up?

    And imagine the rope-pulling that would go on if anyone tried at this point to excise the cancer that is the illegal drug trade these days, by suddenly making those recreational chemicals “legal?” It’s kind of like the most delicate kind of neurosurgery, to extract a tentaculated glioma from the human brain without killing the patient. Chances of survival? Less than 5%.

  10. JTMcPhee says:

    Don’t forget The Original Prohibition Drug, ETOH (what “we” will be making even huger amounts of by diverting food crop land into corn production to make “corn squeezin’s” to fuel our Chryslers. Using more energy and other scarce resources than the burning of alcohol produces. Who says “we” are stupid?)

    Do I remember a novel based on the idea that some Scientist had developed a couple of strains of mosaic virus that could be spread around pretty easily and that would kill off coca and poppy plants everywhere? And then all the skuldggery and shoot-em-up and chase scenes that followed, with governments, warlords, military, “intelligence services,” police forces, and of course the “invisible economy that doesn’t exist” pulling suddenly on the same end of the rope to kill off the Scientist and the bugs and any knowledge related thereto?

    Or did I just make that up?

    And imagine the rope-pulling that would go on if anyone tried at this point to excise the cancer that is the illegal drug trade these days, by suddenly making those recreational chemicals “legal?” It’s kind of like the most delicate kind of neurosurgery, to extract a tentaculated glioma from the human brain without killing the patient. Chances of survival? Less than 5%.

  11. Davaudian says:

    Hmmm, mafia front….which mafia?? So many to choose from….

  12. Davaudian says:

    Hmmm, mafia front….which mafia?? So many to choose from….

  13. RUKind says:

    Synchronicity. Yesterday I was signing on to a mass petition from some group on the financial crisis. I like to personalize so I added a reference to how the current bailout crisis reminded me of BCCI and LTCM.

    Interesting to see BCCI surfacing again. Can LTCM be far behind?

  14. RUKind says:

    Synchronicity. Yesterday I was signing on to a mass petition from some group on the financial crisis. I like to personalize so I added a reference to how the current bailout crisis reminded me of BCCI and LTCM.

    Interesting to see BCCI surfacing again. Can LTCM be far behind?

  15. Bobby the Rouge says:

    Madoff is and has been just a front/gate for the dark nobility, as are semi-automatically all people who pretend that life is a game of Monopoly, I can say it because I am untouchable, but most people would have to submit their lives to unspeakable horrors for just saying this, I feel sorry for that so I decide to state the Truth. Whether Mr. Madoff continues his path is his own choice.

    As for the Southern Italian and Latin American gangs – they are subservient through Middle Age hierarchies to the nobility that commands them – remember to research their history all of these gangs start out as peasant societies/groups of “protection” created by local nobles in their perspective areas, united by bizarre religious rituals like christianity and its dark side (worship in orgies, worship of the saints of the dead, thieves and etc…) – most medieval historians know of these estatic cults that were the real start of all Eastern (Palestine, Byzantine Rome, Syria) , Southern (Tunisia attacked by the French king Louis the Holy) , Northern (the ancient druids and druidic people in Livonia, Estonia – the Baltic Area destroyed by the Teutonic order and the Vatican) and Western (the Reconquering of Spain, the early colon., blunder and murder of the Americas) crusades and crusader orders Search childrens crusade and the peasant armies of the first crusade – there were only about 500 noble knights, if not less, in the first crusade. Of course I am speaking of crusades as a curse that continues to this day because vis-a-vis Bush in Iraq and Obama in Afganistan are both peasant christians murdering in the name of their fake saviour. Most crime done these days is done by “secret” organisations that were created about the time of Charlemagne (Charles the Great, Charles the First) – except they are not really secret nor are they organised…

    Returning to Madoff, he did not follow the orders of his superiours, became afraid and paranoid and decided to go to prison for basically safety reasons – for a slave it is better to punish yourself in front of the eyes of the master so to avoid the violence of your commander. Most of the money was taken from him to begin with and he only has about 10 m. to 100 m. (dollars) stacked away in some places. He in is decadence just repeating the cultural norm of the Jewish merchant being harassed by the nobility – see the decline of the Spanish Jewish merchants (the only group of Jews in Europe with the cultural and physical DNA of the original Jews) , see the Shakespearian canon work of the Merchant of Venice and etc… Very clever manipulation along the lines of cultural mores and financial personalities.

    So to clarify and to turn the historical knob off for a while – the money you so desire to see is spread around in many European banks from Scotland, Spain to North Italy, geographically speaking. Especially Spanish and Italian banks, which have not been hurt in the recession. Wonder why? Oh, really… that is why I gave the history lesson.

  16. Bobby the Rouge says:

    Madoff is and has been just a front/gate for the dark nobility, as are semi-automatically all people who pretend that life is a game of Monopoly, I can say it because I am untouchable, but most people would have to submit their lives to unspeakable horrors for just saying this, I feel sorry for that so I decide to state the Truth. Whether Mr. Madoff continues his path is his own choice.

    As for the Southern Italian and Latin American gangs – they are subservient through Middle Age hierarchies to the nobility that commands them – remember to research their history all of these gangs start out as peasant societies/groups of “protection” created by local nobles in their perspective areas, united by bizarre religious rituals like christianity and its dark side (worship in orgies, worship of the saints of the dead, thieves and etc…) – most medieval historians know of these estatic cults that were the real start of all Eastern (Palestine, Byzantine Rome, Syria) , Southern (Tunisia attacked by the French king Louis the Holy) , Northern (the ancient druids and druidic people in Livonia, Estonia – the Baltic Area destroyed by the Teutonic order and the Vatican) and Western (the Reconquering of Spain, the early colon., blunder and murder of the Americas) crusades and crusader orders Search childrens crusade and the peasant armies of the first crusade – there were only about 500 noble knights, if not less, in the first crusade. Of course I am speaking of crusades as a curse that continues to this day because vis-a-vis Bush in Iraq and Obama in Afganistan are both peasant christians murdering in the name of their fake saviour. Most crime done these days is done by “secret” organisations that were created about the time of Charlemagne (Charles the Great, Charles the First) – except they are not really secret nor are they organised…

    Returning to Madoff, he did not follow the orders of his superiours, became afraid and paranoid and decided to go to prison for basically safety reasons – for a slave it is better to punish yourself in front of the eyes of the master so to avoid the violence of your commander. Most of the money was taken from him to begin with and he only has about 10 m. to 100 m. (dollars) stacked away in some places. He in is decadence just repeating the cultural norm of the Jewish merchant being harassed by the nobility – see the decline of the Spanish Jewish merchants (the only group of Jews in Europe with the cultural and physical DNA of the original Jews) , see the Shakespearian canon work of the Merchant of Venice and etc… Very clever manipulation along the lines of cultural mores and financial personalities.

    So to clarify and to turn the historical knob off for a while – the money you so desire to see is spread around in many European banks from Scotland, Spain to North Italy, geographically speaking. Especially Spanish and Italian banks, which have not been hurt in the recession. Wonder why? Oh, really… that is why I gave the history lesson.

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