Scam Bernard Madoff

Interview with Sergey Mavrodi

The events of the year according to The New Times

"Pyramids - like parasites: they are indestructible!" The case of Bernard Madoff was already dubbed the “scam of the century”-the total losses of investors amounted to $ 65 billion. The New York Court sentenced the 71-year-old Madoff to 150 years in prison. Now in the United States, one by one, auctions are being held to sell property of the former “king of Wall Street”. About how Madoff managed to deceive so many people-The New Times questioned the main Russian expert in the field of pyramid building, ex-head of MMM Sergey Mavrodi Foundation Madoff Investment Securities was founded in 1960. Do you think Madoff was originally going to earn money on pyramidal schemes? For all these years, Madoff paid stably high interest on - more than anyone. This does not happen. Whatever they say, the financial market is largely roulette, luck. It cannot be in principle that someone is lucky for so long. So the answer is unequivocal: yes, he initially and deliberately chose the construction of a financial pyramid.

The losses of the Madoff Foundation are explained only by the crisis or other factors played a role? Losses do not matter. In the pyramids, other laws act - dynamic. The pyramid is unprofitable from the very moment of its birth, but this does not prevent it from existing perfectly for many years and even decades! The example of Madoff, by the way, convincingly confirmed this: the lifetime of the pyramids is much more than it is customary to think. Only speed is important, not “losses”. It’s like a bicycle: you can only go, the stop is a fall. Well, do not stop: go ahead! Madoff killed, of course, a crisis. The oncoming wind blew. Hurricane! The speed of his bicycle at first sharply slowed down, and in the end he even stopped and fell. There were practically no new customers, and the old ones began problems, and they urgently began to take their money. That's what everything ended.

Madoff promised guaranteed income to the depositors, and twice as high than accepted in America. How can such promises be kept in market conditions? What did he count on? Just the example of Madoff demonstrated in practice that with the help of the pyramid you can restrain such promises! He paid everything before, and for decades. Many in America are now recognizing this. But if the lifetime of the pyramid is calculated for decades, is it so bad? Why is it worse, say, the same bank? They are also not eternal, despite all their “investments” and “guarantee”. And at the collapse of the bank, customers also lose everything.

To listen to you, it turns out that the financial pyramid is a good good ... The pyramid is essentially a parasite. It parasitizes on other, healthy structures involved in real affairs. But firstly, since parasites exist in nature, it means that for some reason they are needed. And if all of them to kill them, then the ecosystem is violated and it is not yet known what will happen. And secondly, if there are few of them, then there are also few harm from them. Problems begin when their number exceeds a certain critical mass. In short, participating in a correctly and thoroughly built pyramid (such as the one created by Madoff), you can really receive overpridemen for a very long time. But keep in mind: you actually parasitize on other members of society. If you do not have any moral problems in this regard - participate in health!

What is Madoff's main mistake? He did not foresee the crisis. And then he just passed his nerves when problems began. Everything was probably still possible to continue. Try to negotiate with customers, referring to the crisis. Now everyone has problems with loans. So what? Their banks are prolonged, they go towards borrowers ... Still, they understand everything, no one wants to lose their money. What is the point if you sue him and ruin it? I call this “Kiriyenko syndrome”, which came in the 98th year, saw, scared-and announced the default. I still think that GKO would have been calmly further, if not for this financial child prodigy, who had not understood anything. But this is so, by the way ...

However, Madoff repented deeply in his deed - so he said in court - and he feels guilty of deceived depositors ... In January, being under house arrest, Madoff tried to send his native a parcel with abash clocks and several decorations for $ 1 million. It was intercepted, and Madoff was returned to prison. Think about it: a person who turned tens of billions risks freedom because of a miserable million. This confirms my hypothesis that the nerves were passed. He did not even prepare: he did not hide anything and did not give his relatives. Repentance and recognition in sins was spontaneous. And then he came to his senses, yes late! There were billions yesterday, and today everything arrested - and there is literally nothing to live. So he began to pack the clock in the parcels ...

It is believed that in the United States a strict system for monitoring financial markets. How did she miss such a major violation? Yes, it was believed - before Madoff. However, it turned out that this is not so. But objectivity should be admitted for the sake of recognizing: if a person knows the control system from the inside (and Madoff was even a consultant of sec - commissions on securities and exchanges), then, of course, he will overcome it. Now SEC should draw conclusions from what happened.

How can you prevent the creation of such pyramids? No way! I already talked about parasites: they are indestructible! All that can be done is to regulate their numbers. And no more. Yes, you can configure the control system so that the Madoff option no longer repeats. But there will be another option, hitherto unheated, and he will again take everyone by surprise.

How do you feel about Madoff's sentence - 150 years in prison? I think Madoff will sit a couple of years, and the remaining 148 will be thrown away to him “for exemplary behavior” or due to the fact that he “does not pose any danger to society”. And everyone will be satisfied with this. Because this whole process is show -off. Fars are simple! If a person is 71 years old, is it all the same as how much to give him: 12 years (as a lawyer has been asked) or 150? But if 12 give - deceived investors will say that there are few, and 150 - they are satisfied. And a fine of $ 171 billion is what is not a window dressing? They would have been appointed $ 171 trillion, what's the difference! All the same, such money does not exist in principle.

What can Madoff pyramid depositors count on: will they receive any compensation? Madoff seized property and savings for $ 800-900 million. That's what they can count on. But I want to pay attention to the following: why do everyone pour tears on Madoff's depositors, but do not remember the ruined customers Freddie Mac and Fannie Mae or AIG? And their leaders, as far as I know, for the most part feel great and do not rot in prison. Why, actually? Just because these structures were not pyramids? I wonder if it is easier for those who lost their money there?