Praise for Bernie Madoff, The Wizard of Lies
Henriquesoffers a riveting history of Mr Madoffs shady dealings and the shattering consequences of his theft.
The Economist
[Henriques] probably knows more than anyone outside the FBI and the Securities and Exchange Commission about the mechanics of the fraud. As a consequence, in [the book] she is able to add significant detail to the story.... In the end the story holds us not because of the engrossing details of the scam, but because of the human dimension.
The New York Times Book Review
Cogent and well researched, Bernie Madoff, The Wizard of Lies is an engaging narrative. [The book] reveals many moments where Madoff might have been stopped. But his investors were too trusting or too greedy to ask the right questions and US regulators were too cowed and too disorganised.
Financial Times
Henriques has been granted an unprecedented level of access to Bernard Madoff What could she uncover that we havent already heard? As it turns out, plenty. Henriques offers an impressive, meticulously reported postmortem not only of the Ponzi scheme but also of Madoffs entire career.... The definitive book on what Madoff did and how he did it.
Bloomberg BusinessWeek
[Madoff] is so much like every one of us that failing to recognize this fact will imperil us at every financial turn. This is one of many revelations in Diana Henriques stunning new book... Masterful.
Reuters
Compelling.
The New York Times
[A] fascinating portrait In this thoroughly researched and well-written account, Henriques skilfully manages to humanise Madoff without diminishing the monstrousness of his deeds.
Fort Worth Star-Telegram
Also by Diana B. Henriques
The White Sharks of Wall Street:
Thomas Mellon Evans and the Original Corporate Raiders
Fidelitys World:
The Secret Life and Public Power of the Mutual Fund Giant
The Machinery of Greed:
Public Authority Abuse and What to Do About It
BERNIE MADOFF, THE WIZARD OF LIES
BERNIE
MADOFF,
THE
WIZARD
OF LIES
INSIDE THE INFAMOUS $65 BILLION SWINDLE
DIANA B. HENRIQUES
A Oneworld Book
First published in Great Britain and the Commonwealth by Oneworld Publications 2011
First published in the USA and Canada as The Wizard of Lies: Bernie Madoff and the Death of Trust by Times Books, 2011
This ebook edition published by Oneworld Publications 2011
Published by arrangement with Times Books, an imprint of Henry Holt and Company, LLC,
175 Fifth Avenue, New York, NY 10010 USA.
Copyright 2011 by Diana B. Henriques
The moral right of Diana B. Henriques to be identified as the Author of this work has been asserted by her in accordance with the Copyright, Designs and Patent Act 1988
All rights reserved
Copyright under Berne Convention
A CIP record for this title is available
from the British Library
ISBN 978-1-78074- 043-0
Cover design by Dan Mogford
Design by Meryl Sussman Levavi
Oneworld Publications
185 Banbury Road, Oxford, OX2 7AR, England
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For my colleagues at The New York Times,
yesterday, today, and tomorrow;
and for Larry,
forever
CONTENTS
CAST OF CHARACTERS
THE MADOFF FAMILY
Bernie Madoff, founder of Bernard L. Madoff Investment Securities
Ruth Madoff (ne Alpern), his wife
Mark Madoff, their elder son, born 1964
Andrew Madoff, their younger son, born 1966
Peter Madoff, Bernie Madoffs younger brother
Shana Madoff, his daughter
Roger Madoff, his son
Ralph Madoff, Bernie Madoffs father
Sylvia Madoff (ne Muntner), Bernie Madoffs mother
AT BERNARD L. MADOFF INVESTMENT SECURITIES
Eleanor Squillari, Bernie Madoffs secretary
Irwin Lipkin, Madoffs first employee
Daniel Bonventre, the director of operations
Frank DiPascali, the manager on the seventeenth floor
Jerome OHara, a computer programmer
George Perez, his coworker and officemate
David Kugel, an arbitrage trader
THE ACCOUNTANTS
Saul Alpern, Ruth Madoffs father
Frank Avellino, Alperns colleague and successor
Michael Bienes, Avellinos longtime partner
Jerome Horowitz, an early Alpern partner and Madoffs accountant
David Friehling, Horowitzs son-in-law and successor
Paul Konigsberg, a Manhattan accountant
Richard Glantz, a lawyer and the son of an early Alpern associate
INDIVIDUAL INVESTORS AND INTRODUCERS
Martin J. Joel Jr, a stockbroker in New York
Norman F. Levy, a real estate tycoon in New York
Carl Shapiro, a philanthropist in Palm Beach
Robert Jaffe, his son-in-law
Jeffry Picower, a secretive New York investor
William D. Zabel, his longtime attorney
Mendel Mike Engler, a stockbroker in Minneapolis
Howard Squadron, a prominent Manhattan attorney
Fred Wilpon, an owner of the New York Mets baseball team
MAJOR US FEEDER FUNDS
Stanley Chais, a Beverly Hills investor
Jeffrey Tucker, a cofounder of Fairfield Greenwich Group
Walter Noel Jr, his founding partner
Mark McKeefry, the general counsel at Fairfield Greenwich
Amit Vijayvergiya, the chief risk officer at Fairfield Greenwich
J. Ezra Merkin, a prominent Wall Street investor
Victor Teicher, his former adviser
Sandra Manzke, a pension fund specialist
Robert I. Schulman, her onetime partner
INTERNATIONAL INVESTORS AND PROMOTERS
Jacques Amsellem, a French investor
Albert Igoin, a secretive financial adviser in Paris
Patrick Littaye