The Work

March 12, 2009 10:40 AM

Live Blogging the Madoff Hearing: "I knew what I was doing was wrong and criminal"

Posted by Brian Baxter

"Mr. Madoff, tell me what you did please," said Judge Chin.

With that request, Bernie Madoff began his allocution.

Madoff admitted that he ran a Ponzi scheme on the investment side of
his business, Bernard L. Madoff Investment Securities.

He said he was grateful for the opportunity to tell the court what he has done. He apologized to friends, family, and business associates.

"I knew what I was doing was wrong and criminal, but I thought I could do it quickly and extricate my clients from it," Madoff said.

"It" would be the Ponzi scheme. Madoff said he falsely represented to clients that he was investing their money in stock in order to return profits in principle. But during the recession of the early to mid-nineties, Madoff said he stopped doing that.

He began depositing funds from clients who thought they were purchasing stock into an account at Chase Manhattan in New York. Madoff said he used that money to pay redemptions by clients, including pension funds, hedge funds, charitable organizations, and trusts.

Madoff says that only the investment side of his business was engaged in illegal activity. The market-making and proprietary trading arms run by Madoff’s brother, Peter, and his two sons were
legitimate businesses, he said.

Live Blogging the Madoff Hearing

The Prosecutors Enter and Madoff Says He's Ready to Plead Guilty - 3/12/09, 10:13 a.m.

Bernie Makes His Entrance - 3/12/09, 9:56 a.m.

Waiting for Bernie - 3/12/09, 9:40 a.m.

The Circus in Foley Square - 3/12/09, 9:30 a.m.

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