Madoff says government is a Ponzi scheme

 

NEW YORK — Wall Street swindler
Bernard Madoff said in a magazine interview that new regulatory reform enacted
after the recent national financial crisis is laughable and that the federal
government is a Ponzi scheme.

“The whole new regulatory
reform is a joke,” Madoff said during a telephone interview with New York
magazine in which he discussed his disdain for the financial industry and for
its regulators.

Madoff did an earlier New York
Times interview in which he accused banks and hedge funds of being
“complicit” in his Ponzi scheme to fleece people out of billions of
dollars.

He said they failed to scrutinize
the discrepancies between his regulatory filings and other information.

He said in the New York magazine
interview the Securities and Exchange Commission “looks terrible in this
thing,” and he said the “whole government is a Ponzi scheme.”

A Ponzi, or pyramid, scheme is a
scam in which people are persuaded to invest through promises of unusually high
returns, with early investors paid their returns out of money put in by later
investors.

A court-appointed trustee seeking
to recover money on behalf of the victims of Madoff’s massive Ponzi scheme has
filed a lawsuit against his primary banker, JPMorgan Chase, alleging the bank
had suspected something wrong in his operation for years.

The bank has denied any wrongdoing.

Madoff is serving a 150-year prison
sentence in Butner, North Carolina, after pleading guilty in 2009 to fraud
charges.

In the New York magazine interview,
Madoff, 72, also said he was devastated by his son Mark Madoff’s death and
laments the pain he wrought on his family, especially his wife.

“She’s angry at me,”
Madoff said. “I mean, you know, I destroyed our family.”

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