Madoff: 'Government Is a Ponzi Scheme'

Bernard MadoffWall Street swindler Bernard Madoff said in a magazine interview published Sunday 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.

The interview was published on the magazine's website Sunday night.

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, N.C., 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." Mark Madoff, 46, hanged himself with a dog leash in his Manhattan apartment on the second anniversary of his father's arrest. He left behind a wife and four children, ages 2 to 18.

At the time of his suicide, federal investigators had been trying to determine if he, his brother and an uncle participated in or knew about the fraud. The relatives, who held management positions at the family investment firm, denied any wrongdoing.

Bernard Madoff has maintained that his family didn't know about his Ponzi scheme.

Increase your money and finance knowledge from home

Bonds for Beginners

Learn about fixed income investments.

View Course »

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Major Fraud Alert

The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section:

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 29 2011 at 1:02 AM Report abuse rate up rate down Reply

America...Why has thou forsaken us???!!!
They tried to get their greedy government hands on the RR fund! So far , They have not managed to pervert this retirement fund yet, by melding it with Social Security. But I'm sure they'll manage to get their hands on this fully vested functioning retirement fund eventually....
I thank God I was one of the 6% of the nation that puts money into a plan that's not melded w/Social Security. Railroad workers were given a choice not to withhold Social Security, but pay into railroad Retirement.
When the government announced it's great plan to benefit people in their senior years, it was never supposed to go over 1%. It's passing 15% now,and it's still under funded. But then again , in 1944 , average lifespan was 55yrs. You think it was a coincidence that retirement age was set to 55 yrs???? And Americans wonder why other Nations think we are a joke.....Look at the clowns we have steering the ship.
Btwn taxes,corruption,greed and smiling politicians getting their golden parachutes in place, I welcome the end to my tenure here. I feel sorry that my children have to deal with this legacy of our financially failing nation. I will be bankrupted soon, and lose my family home because although we paid the mortgage many yrs ago, I can no longer afford to pay the over inflated assessed prop taxes! I wish I could persuade the working people of this Circus to just stop working. Let's all collect a bailout funded by the politicians...
I used to think "hard work " and the Puritan Ethic was was I fed a line of crap! I'm thinking of a lyrical tune sang by Janis Joplin...."Freedom just another word for nothing less to lose"!... Nothing so disheartening as watching the death of a once Great Nation.

March 02 2011 at 11:36 PM Report abuse rate up rate down Reply

The stock market is a pryamid as well, I wouldyone realizes this .................

March 01 2011 at 1:06 PM Report abuse +1 rate up rate down Reply

Takes a thief to know a big thief. By the way why is something like Social Security going to people who make over $100,000 a year anyway? Here's a way for the government to save money and cut costs. Stop giving social security to people who don't need it and just give it to people who earn a certain yearly income that don't have have more than one car or one place to live in.

March 01 2011 at 11:13 AM Report abuse +1 rate up rate down Reply
2 replies to sychoken's comment

Because it is an insurance policy promised by the government when it started.
Now they are backing out of this promise as it becomes the government welfare policy instead of insurance as promised

March 01 2011 at 1:10 PM Report abuse +3 rate up rate down Reply

Great suggestion!! Those who have concluded that SS is like an insurance policy are partially right--Social Security is-or should be--a liability policy that the privileged--or luck--should not be able to tap. People who pay auto or home insurance premiums, for example, and who suffer a "loss" are made whole. Others, who never get into an accident or lose property to fire or flood, never get a "benefit" beyond peace of mind. Now THAT'S the way Social Security benefits should be treated, and why it will never be.

March 01 2011 at 5:18 PM Report abuse rate up rate down Reply

Without an economy that is tightly controlled with regulation, intense monitoring, and sugnificant penalties, there will always be fraud and deception in our economy. The public can't or won't pay for these safeguards. The high deficits currently are insurance for those who would defraud the public.

March 01 2011 at 10:47 AM Report abuse +3 rate up rate down Reply

boy........when you think of it, the outside world must be looking at us like the BIGGEST SHOW ON EARTH... the Biggest 3 ring circus of all, that is !
" Step right up folks, Come one , Come All, Don't be affraid, Step right in !
See the massive Corruption........The Greed.........Home of the Free to grab what you want.......comm'on in.......See the Specticle of a Life time, just leave your
Troubles and All your Money at the Ticket Desk and watch our Government leaders on the High wire and Trapeeze perform amazing acts of Greed with their safety nets in place !
"STEP RIGHT UP ..........there is a new act every minute.....Step right up"
Egypt, Libya, Greece, are small po'tata's compared to this show ! Step Right Up!

March 01 2011 at 7:39 AM Report abuse +6 rate up rate down Reply

This is predictable, after rejection comes "Virtue" ! Where is the list of the
Greatest Swindlers of America in the modern times ? New York City is a corrupt
and ugly prayers go out to this man's Family and all his
victims !

March 01 2011 at 7:07 AM Report abuse rate up rate down Reply
Doug and Anzelik

I am certainly not a Madoff fan, I think he is a low-life bastard...but...what he says about the government has alot of truth in it !!!

March 01 2011 at 6:25 AM Report abuse +1 rate up rate down Reply

Bernie is right. Social Security is a Ponzi scheme where money is taken from one group to pay the retirement of another group. Ever since LBJ and his stupid Great Society commingled the Social Security Trust Fund into the general fund the whole program is nothing more than a Ponzi scheme. If Bernie has to be in prison so should all the Socialists running our government.

February 28 2011 at 11:10 PM Report abuse +3 rate up rate down Reply


February 28 2011 at 10:19 PM Report abuse +1 rate up rate down Reply