DailyFinance Toolbar

Madoff lawsuit gives a glimpse of the fraudster at play, and in the Big House

Posted 2:20 PM 10/21/09 , ,
Print Text Size A A A
On Tuesday night in Manhattan Supreme Court, lawyer Joseph Cotchett filed additions to a lawsuit against bogus billionaire Bernie Madoff. In addition to offering glimpses about Madoff's business and his life behind bars, the new material alleges that numerous financial institutions including JPMorgan Chase (JPM), KPMG, the Bank of New York (BK), and Massachusetts Mutual Life Insurance were complicit in Madoff's scheme -- or at least should have been more vigilant about protecting their customers.

Cotchett, who interviewed Madoff in prison, says the businessman's company rode high on the anything-goes spirit of the 1970s. The suit claims that Madoff put two street toughs on his payroll in 1975, tasking them with procuring cocaine for his office. They did their job well; some insiders allegedly referred to Madoff's headquarters as "the North Pole."


Back in the day, Bernard L. Madoff Investment Securities LLC was a hotbed of hedonism. Whether snorting coke, attending parties with topless waitresses and masseuses, or spending weekends on the company yacht, life on Team Madoff was a whirl of decadent fun.

Madoff's horizons are a bit narrower nowadays, and his colleagues are a little less A-list. For people who can't hear enough about Madoff's life behind bars, Cotchett's suit offers fresh details about Bernie's new day-to-day existence. One of Madoff's jailhouse buddies is Carmine "The Snake" Persico, former head of the Columbo crime family. Another is notorious 1980s spy Jonathan Pollard, convicted of passing top-secret U.S. military documents to Israeli agents.

While reminiscing about New York and sharing their feelings about being loathed by the general public, Persico, Pollard, and Madoff might also discuss food. There isn't much information about the quality of the cuisine at the Federal Correctional Complex in Butner, North Carolina, although Cotchett reports that the prison's pizza chef is a convicted child molester. (Although Butner is a federal penitentiary, its inmates have been incarcerated for a wide range of crimes. Madoff's cellmate is a 21-year-old drug offender.)

One can't help but wonder about Madoff's late-night conversations with his bunkmate as they drift off to sleep. Do they discuss their hopes and dreams, their fears and terrors, their favorite movies and dreamiest actresses? Or does Bernie just regale his roomie with tales of coke-fueled parties and complex con games? As he counts off his 150 years in the clink, Bernie will have plenty of time to relive his glory days.
Bruce Watson

Bruce Watson

View all Articles »
Features Writer

Bruce Watson is a features writer for DailyFinance, focusing on the political and cultural effects of economic events. A contributor to Military Lessons of the Persian Gulf War, A Chronology of the Cold War at Sea, the Journal of American Philosophy, A Cafe in Space, and the forthcoming Peanut Butter, Gooseberries, and Latkes! He has also worked as a research assistant in the British House of Commons and at the United States Naval Institute.

Read More
SUBSCRIBE TO:
RSS
COMMENTS ( 0 )
GOT SOMETHING TO SAY?
YOU'LL BE ASKED TO REGISTER OR SIGN IN BEFORE POSTING A COMMENT.
Make a Comment
Comment
 
Follow Us
Follow Our Writers
Pallavi Gogoi Pallavi Gogoi Financial Writer
Peter Cohan Peter Cohan Financial Columnist
Sarah Gilbert Sarah Gilbert Features Writer
Gene Marcial Gene Marcial Financial Columnist
Jeff Bercovici Jeff Bercovici Media Columnist
James Altucher James Altucher Financial Columnist
Mercedes M. Cardona Mercedes M. Cardona Retail Reporter
Nikhil Hutheesing Nikhil Hutheesing Assistant Managing Editor
Latif Lewis Latif Lewis Business News Editor
More Writers

Headlines From DailyFinance Partners

CNN Money
CNBC
Smart Money
Fox Business
Engadget
BloggingStocks
 WalletPop
AOL Small Business
Luxist
Housing Watch
AOL News
Business NewsInvesting and Real EstatePersonal Finance at WalletPopSmall Business

Terms of Service | Privacy Policy | Trademarks | HELP

© 2010 AOL Inc. All Rights Reserved