Spies, Mobsters, Sex and Drugs – More Madoff News
The longer Bernard Madoff sits in jail the more details slowly begin to trickle out concerning e
xactly what was going on at his firm.
The latest news focuses on his life in federal prison (Federal Butner Correctional Complex) in North Carolina. Here is a video about Madoff’s life in jail:
Madoff’s reported jail buddies include Carmine Persico, a reputed Colombo crime family 
boss, and Jonathan Pollard, an American convicted of selling military secrets to Israel more than two decades ago.
It is also being reported that Madoff recently was engaged in a fight in prison (and he won).
A new lawsuit filed on behalf of former investors alleges that Madoff financed a cocaine-fueled work environment and a “culture of sexual deviance” and that he also diverted money to his London office when he suspected federal authorities were closing in. News had previously surfaced in a book called, “Madoff’s Other Secret: Love, Money, Bernie and Me” that Madoff had an extramarital affair with the book’s author Sheryl Weinstein (the former chief financial officer of Hadassah.
The lawsuit also alleges that during the mid-1970s Madoff began sending employees to purchase drugs. The suit also states that Madoff’s firm was known by those familiar with the firm as the “North Pole” in reference to the excessive amounts of cocaine being used. Other allegations include Madoff’s fondness for escorts and masseuse. The complaint as filed by attorneys Joseph Cotchett and Nancy Fineman based on a four-hour interview with Madoff in prison. Here is a link to the complaint.
Interesting the suit also claims that major financial institutional knew that Madoff was transferring stolen funds to London for his own personal purchases. The firm’s named include KPMG, Bank of New York Mellon and JP Morgan Chase.
Madoff’s possessions are still up for auction including his Mercedes station wagon.
News of further Madoff losses are also still being released. The Texas treasury recently announced they lost $19.5 million as part of a larger $224.5 million investment the treasury had with Austin Capital Safe Harbor, a now closed Texas based hedge fund. Yahoo! Sports is also reporting that the New York Mets might also be liable from clawback suits from other investors.
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[...] Mr. Madoff should have heeded the tax advice in Mr. Zabel’s book by adopting his mistress, Sheryl Weinstein, with which he had an [...]