How Bernie Madoff did his scandolous deeds - in Jail

It still amazes me to read this story. Thinking of all of the people who were affected by the Madoff Scandal.. When you thinking of companies like general motors and chrysler who are affecting miillions of people. This scandal is small in comparison, however, it still affects a widespread amount of people.

CNN.com The employees were transfixed. Standing in the middle of Manhattan commercial flooring Bernard L. Madoff Investment Securities in late 2007, half a dozen staff members looked at the ceiling-mounted TV and CNBC aired a report on the mysterious death of Palm Beach, a hedge fund manager who was leading a double life. The police, apparently, even considering the possibility that he had been murdered. "Bernie Madoff," someone asked casually Bernard Madoff like to walk, "you've heard of this guy?"

Madoff a look at the screen, bleached, and exploded: "Why the hell would be interested in stuff like that?" The employees retreated. "I never saw him like that before reacting," Madoff said a trader who witnessed the explosion. "It's obviously affected a nerve."
0:00 / 2:48 Minnesota Madoff mess

That loss of control was very out of character for the head. But traders did not know at the time it was extremely Madoff develop a second life is two floors below them, one is to build an epic, and the inevitable explosion. Took a special pass to enter the "back office" in 17, which was making its Madoff $ 65 million Ponzi scheme. And even if a person can go in, there was not much to see: an old IBM computer server maintained in a locked room, the piles of trading states, and a staff of about 20 employees and paper pushers.

In retrospect, of course, there are indications, such as research has found fortune. IBM's server, for example, an AS/400 dating from the 1980s, it was so old that some data had been entered into the hand, but refused to replace Bernard Madoff. The machine - which has been autopsied by the government - is the nerve center of the fraud. The many thousands of pages of statements showed that his trade was never made.

Then it was the man who led the floor, Frank DiPascali, Bernie Madoff deputy chief of staff the 17. He was a veteran of 33 years of the related company, with a heavy accent and a Queens high school, but nobody was quite sure what he did or what his title was. "It was like a ninja," says a former trader at the legitimate operation above. "The whole world knew he was a great thing, but it was like a big shadow."

There are other mysteries, as we shall see. But even after the large detonation of five months in a brilliant fireworks display of betrayal and recrimination, Madoff plan - possibly the biggest investment fraud in the country's history - has remained among the most difficult to penetrate. More commonly, white-collar cases begin with a quiet, behind the scenes of research, followed by a series of transactions with younger employees, who are squeezed by lawyers and prosecutors to cough up details about their superiors. Step by step, prosecutors move up. Finally comes the denouement: the ringmaster hauled to court in securing handcuffs.

But Bernie Madoff all aspects of the traditional narrative that has been reversed. The case began with flabbergasting his confession, which was outside the investigation. Bernie Madoff argued that all crimes committed by himself, but because it covers decades and continents, a cloud of suspicion immediately plunged Bernie Madoff family members who worked at the company, as well as employees and business associates.

Now that the fog may be about to lift. Fortune has learned that Frank DiPascali is trying to negotiate a plea deal with federal prosecutors in which, in exchange for a reduced sentence, disclosed the encyclopaedic knowledge of the plan Madoff. And unlike his boss is willing to DiPascali names.

According to a person familiar with the matter, DiPascali has no evidence that Bernard Madoff other family members were involved in fraud. However, he was prepared to testify that he manipulated false returns on behalf of some major investors Bernard Madoff, including Frank Avellino, who used to run the so-called bottom feeding, Jeffry Picower, whose foundation was closed because of related Bernard Madoff losses, and others. If, for example, one of these clients had large gains in other investments, which would DiPascali, which produce a loss to reduce the tax bill. If true, this would mean that investors knew their statements fish. (Lawyers and Picower Avellino declined to comment. Marc Mukasey, DiPascali counsel, said, "We expect and encourage a thorough investigation.")

The emergence of this potential star witness can be on the case scenarios in their heads: Some people widely assumed by the public which has been implicated in the fraud may not have been, and a small group of investors that Bernard Madoff seemed innocent victims can not have been totally innocent, after all. But then, some things about the life of Bernie Madoff become what they seem.