United States v. Bernard L. Madoff, 09 Cr. 213 (DC) — Sentencing transcript, June 29, 2009

Claims Supported by This Source

1. On March 12, 2009, the defendant pleaded guilty to 11 counts: securities fraud, investment adviser fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC, and theft from an employee benefit plan (p.2).
2. The total offense level under the sentencing guidelines was 52, with a criminal history category of I. The guideline range was 150 years, the sum of the statutory maximums for each count, and the Probation Department recommended 50 years (pp.3–4).
3. Hundreds of victim statements were submitted, and nine victims made statements in court (p.4).
4. Defense counsel's statement: The loss amount in the PSR is $13,226,000,000. The SIPC trustee holds $1.276 billion, has recovered $1.225 billion, has sent demand letters for $735 million, and has filed clawback lawsuits for $10.1 billion. Reports of a "$65 billion Ponzi" are not supported by the government or the PSR. Commingling began in the last 8–10 years, with $250 million in advisory funds being mixed in. Requested sentence is 12 years, or alternatively 15–20 years (pp. 33–36).
5. Defendant's statement: "No excuses." "I thought I could get out of it when I started." "It was an error in judgment, not an error in trading." "I apologize to the victims." His wife stated she would issue a statement after the sentencing (pp. 36–38).
6. Government's statement: A calculated fraud spanning over 20 years, not a crime born of market pressure. Hundreds of thousands of false documents each year. Losses conservatively estimated at $13 billion. At the time of arrest, had prepared checks totaling $173 million for family, friends, and some clients. Prosecution seeks 150 years (pp. 39–42).
7. Judge: The fraud spanned over 20 years. The defendant denies it began before the 1990s, but "it is clear that it began before then." The loss amount is disputed; the defendant contests both $65 billion and $13 billion but admitted that approximately $170 billion flowed in. The PSR's $13 billion does not include losses via feeder funds. The defendant told his sons the loss was $50 billion. Unprecedented by any measure (p. 43).
8. Judge: Millions of pages of statements sent to clients confirmed trades that never happened and certified balances that did not exist. In the 10 years from 1998 to 2007, income reported on tax returns exceeded $250 million. Agreed to a forfeiture order of $170 billion. His wife agreed to an $80 million asset transfer, but as the collapse neared, $15 million in company funds were transferred to her account. Not a single letter of support was received (pp. 44–46).
9. Sentence: 150 years (20 years each for counts 1, 3, 4, 5, 6, 10; 5 years each for counts 2, 8, 9, 11; 10 years for count 7; all to be served consecutively. 1,800 months). Supervised release for 3 years (concurrent). No fine (assets to go to victim restitution). Restitution deferred for 90 days. Special assessment of $1,100. Forfeiture order incorporated into the judgment. Judge recommends a facility in the Northeast (pp. 49–51).
10. Victim statements from 9 individuals (pp. 5–30): a retired corrections officer, a 61-year-old widow, a 63-year-old couple, a physical therapist, a model, a couple who lost $5 million, a 33-year-old office worker, a 65-year-old living on food stamps, and a former CFO. The judge interjected, "Criticism of the agencies is not at issue in this case" (p. 11).

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