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Money Madoff Stole Ended up in Israel, Off-Shore Banks and Democratic Coffers

IMAGE: Gawker

By Wayne Madsen | 4 October 2013

WAYNE MADSEN REPORT — WMR has learned from the executor of the estate of a woman defrauded by jailed New York securities dealer Bernard Madoff that much of Madoff’s money never disappeared as alleged by some but was invested in businesses in Israel, transferred to offshore bank accounts, and pumped in small amounts to the political campaigns of Democratic women candidates, particularly U.S. Senate candidates, endorsed by the group EMILY’s List.

Madoff pleaded guilty to a long list of federal charges in 2009 and he was sentenced to 150 years in prison.

By providing Senate candidates with laundered cash, Madoff and his associates could ensure that legislation, such as the 1999 repeal of the Glass-Steagall Act of 1933, passed the Senate. Glass-Steagall provided strict controls over banks’ activities in the securities industry and established firewalls between banks and securities firms. Recipients of Madoff campaign cash were also assured that U.S. judges favorable to Madoff’s interests were appointed to the bench in the Second Circuit in New York, the court that has primary jurisdiction over Wall Street activities.

Madoff money also ended up in the coffers of Republican New York Senator Alfonse d’Amato, who helped steer prospective federal judges favorable to Madoff and his cronies on to federal benches in New York. D’Amato’s defeat by Democrat Chuck Schumer in 1998 was an even better opportunity for Madoff to influence the selection of federal judges and ensure the repeal of Glass-Steagall. Madoff and his associates also ensured that their friends were appointed as surrogate court judges. The judges appointed as guardian ad litem certain attorneys who would then direct the wealth of elderly incapacitated millionaires into Madoff’s investment schemes. Judges also made favorable rulings that saw intestate funds directed to Madoff-connected attorneys. […]

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