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Fraudster Madoff gets 150 years
BBC NEWS
Bernard Madoff has been given the maximum prison sentence of 150 years for masterminding a massive fraud that robbed investors of $65bn (?40bn).
The sentencing was greeted with cheers and applause in the courtroom, while US District Judge Denny Chin described the crime as "staggering".
Madoff's lawyer had sought a more lenient sentence of 12 years.
The sentence came after the court had heard emotional statements from a number of Madoff's victims. Judge Chin gave Madoff the maximum sentence on all 11 charges, which included securities fraud and money laundering. "Here the message must be sent that Mr Madoff's crimes were extraordinarily evil and that this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll," Judge Chin said.
He said "the breach of trust was massive" and pointed out that no friends, family or other supporters had submitted any letters on Mr Madoff's behalf.
'Legacy of shame'
Before the sentencing, Madoff apologised for the "legacy of shame" he had brought on his family and the industry.
"I'm responsible for a great deal of suffering and pain, I understand that," said Madoff, who will spend the rest of his life in prison. He turned directly to those in court who had been affected and said he was sorry.
One person who lost money broke down in tears while giving evidence. "Life has been a living hell. It feels like the nightmare we can't wake from," said Carla Hirshhorn. "May your jail cell be your coffin," Michael Schwartz told Madoff.
The BBC's North America Business Correspondent Michelle Fleury said the length of the sentence was unexpected. Victims would be pleased, she said, but this wasn't the end for them as they are still trying to recover some of their money. "I think it was certainly a justified sentence," said Judith Welling, who lost $2.5m along with her husband. "He's trying to send a message to the world that this sort of behaviour will not be tolerated," she added.
Thousands defrauded
Bernard Madoff admitted defrauding thousands of investors in a Ponzi scheme which he said had been running since the early 1990s.
Madoff started his financial career aged 22 with $5,000 from money made from summer holiday jobs such as working as a garden sprinkler installer in New York. He then set up Bernard L Madoff Investment Securities in 1960. His firm became one of the largest market-makers - matching buyers and sellers of stocks - and Madoff served as chairman of the Nasdaq stock exchange.
Madoff's firm was investigated eight times by the US Securities and Exchange Commission over the past 16 years, because it made exceptional returns. But it was the global recession which effectively prompted Madoff's demise as investors, hit by the downturn, tried to withdraw about $7bn from his funds and he could not find the money to cover it.
The list of Madoff's victims includes film director Steven Spielberg's charitable foundation, Wunderkinder. UK banks were also among the victims with HSBC Holdings saying it had exposure of around $1bn. Other corporate victims were Royal Bank of Scotland and Man Group and Japan's Nomura Holdings.
But it is not just the elite and large firms who were victims of the fraud. School teachers, farmers, mechanics and many others have also lost money.
BBC NEWS
Bernard Madoff has been given the maximum prison sentence of 150 years for masterminding a massive fraud that robbed investors of $65bn (?40bn).
The sentencing was greeted with cheers and applause in the courtroom, while US District Judge Denny Chin described the crime as "staggering".
Madoff's lawyer had sought a more lenient sentence of 12 years.
The sentence came after the court had heard emotional statements from a number of Madoff's victims. Judge Chin gave Madoff the maximum sentence on all 11 charges, which included securities fraud and money laundering. "Here the message must be sent that Mr Madoff's crimes were extraordinarily evil and that this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll," Judge Chin said.
He said "the breach of trust was massive" and pointed out that no friends, family or other supporters had submitted any letters on Mr Madoff's behalf.
'Legacy of shame'
Before the sentencing, Madoff apologised for the "legacy of shame" he had brought on his family and the industry.
"I'm responsible for a great deal of suffering and pain, I understand that," said Madoff, who will spend the rest of his life in prison. He turned directly to those in court who had been affected and said he was sorry.
One person who lost money broke down in tears while giving evidence. "Life has been a living hell. It feels like the nightmare we can't wake from," said Carla Hirshhorn. "May your jail cell be your coffin," Michael Schwartz told Madoff.
The BBC's North America Business Correspondent Michelle Fleury said the length of the sentence was unexpected. Victims would be pleased, she said, but this wasn't the end for them as they are still trying to recover some of their money. "I think it was certainly a justified sentence," said Judith Welling, who lost $2.5m along with her husband. "He's trying to send a message to the world that this sort of behaviour will not be tolerated," she added.
Thousands defrauded
Bernard Madoff admitted defrauding thousands of investors in a Ponzi scheme which he said had been running since the early 1990s.
Madoff started his financial career aged 22 with $5,000 from money made from summer holiday jobs such as working as a garden sprinkler installer in New York. He then set up Bernard L Madoff Investment Securities in 1960. His firm became one of the largest market-makers - matching buyers and sellers of stocks - and Madoff served as chairman of the Nasdaq stock exchange.
Madoff's firm was investigated eight times by the US Securities and Exchange Commission over the past 16 years, because it made exceptional returns. But it was the global recession which effectively prompted Madoff's demise as investors, hit by the downturn, tried to withdraw about $7bn from his funds and he could not find the money to cover it.
The list of Madoff's victims includes film director Steven Spielberg's charitable foundation, Wunderkinder. UK banks were also among the victims with HSBC Holdings saying it had exposure of around $1bn. Other corporate victims were Royal Bank of Scotland and Man Group and Japan's Nomura Holdings.
But it is not just the elite and large firms who were victims of the fraud. School teachers, farmers, mechanics and many others have also lost money.
