Exactly how did Bernie Madoff steal his billions? Why are Halliburton’s hands so dirty? What happened with corruption cases in the rebuilding of Iraq? Following a link from EthicsWorld’s e-newsletter, I came to a single URL that has multiple stories on corruption: https://www.ethicsworld.org/publicsectorgovernance/corruptioninvestigations.php#sec.
This is what we’re up against, those of us who believe in ethics.
Bernard Madoff is, by his own admission, a despicable human being. Here’s the opening paragraph of his statement on sentencing:
Your Honor, for many years up until my arrest on December 11, 2008, I operated a Ponzi scheme through the investment advisory side of my business, Bernard L. Madoff Securities LLC, which was located here in Manhattan, New York at 885 Third Avenue. I am actually grateful for this first opportunity to publicly speak about my crimes, for which I am so deeply sorry and ashamed. As I engaged in my fraud, I knew what I was doing was wrong, indeed criminal. When I began the Ponzi scheme I believed it would end shortly and I would be able to extricate myself and my clients from the scheme. However, this proved difficult, and ultimately impossible, and as the years went by I realized that my arrest and this day would inevitably come. I am painfully aware that I have deeply hurt many, many people, including the members of my family, my closest friends, business associates and the thousands of clients who gave me their money. I cannot adequately express how sorry I am for what I have done. I am here today to accept responsibility for my crimes by pleading guilty and, with this plea allocution, explain the means by which I carried out and concealed my fraud.
You can read the whole confession at the AP site, here.
Well, I’m glad he’s finally decided to be transparent. Yes, it’s far too little, too late. But it’s better than we ever got from Ken Lay…or for that matter, George W. Bush, Dick Cheney, Donald Rumsfeld, and the other war criminals who brought us knowingly into war on false pretenses. They don’t seem to believe in admitting even mistakes, let alone frauds. And let’ face it–the cost of our fraudulent entry into Iraq has been far worse than the $65 billion that Madoff scammed. Economists Joseph Stiglitz and Linda Bilmes put the cost at a jaw-dropping three trillion–that’s 46 Bernie Madoff Ponzi schemes, and that doesn’t even count the human cost of the dead and the wounded and the broken families and those raised to commit terror to avenge the injustice they’ve experienced at the hands of the US.
When Bush was asked in 2004 what his biggest mistake had been since 9/11, he was unable to come up with an answer. Does that mean Iraq was a fully deliberate decision? And since that time, the litany of mistakes–or, Heaven help us, deliberately wrecking things–includes Katrina, wiretapping, attrition of civil liberties, blatant cronyism, and trashing the economy. Still no apology, not even an admission of being wrong.
So on that level, Madoff’s sudden case of candor is refreshing, if somewhat disingenuous. But I draw the line at “I knew what I was doing was wrong, indeed criminal. When I began the Ponzi scheme I believed it would end shortly and I would be able to extricate myself and my clients from the scheme. However, this proved difficult, and ultimately impossible.”
Hello! Where’s the personal responsibility here? It continued, because Mr. Madoff knowingly allowed it to continue. At any point, he could have stopped the juggernaut, admitted guilt, repaid the stolen money, and maybe served five or ten years in prison. In what way was he unable to stop? I don’t buy the argument that he was helpless in the matter, any more than I buy the argument that a wife-beater can’t seek help and stop committing violence. Help is available from lots of places, but it all starts with number one: take responsibility for your behavior.
An open letter to Bernie Madoff (how appropriate, that last name!)
Dear Mr. Made-off
Was it worth it?
$50 billion in your pocket–but the rest of your life in jail and your name disgraced forever?
Was it worth it to have kicked the legs out from under some of the worthiest charities in the country, not to mention thousands of individual investors for some quick personal gain?
And why does anyone need $50 billion to begin with? Couldn’t you have lived lavishly enough stealing just a few million?
You are a disgrace to the business community! Thank goodness there are those who think differently about business, who accept the consequences of their actions, and who use business to advance the common good. Business at its best is a laboratory for innovation, a funnel for economic improvement, and the engine of the economy.
Bernard Madoff, How great you could have been if you’d used your considerable skills toward better ends! Do you feel any guilt and shame? Or just frustration that you got caught?
Shel Horowitz is the award-winning author of Principled Profit: Marketing That Puts People First and the founder of the international Business Ethics Pledge.