Episode 1: Sins of A Father | Bernie Madoff Scandal | Full Episode

to listen to american scandal one week early and add free join wondering plus in the wondry app download the wondry app in your apple or google play mobile app store today [Music] it's march 12 2009 in downtown manhattan a crowd of people surrounds a federal courthouse with police officers standing by their hands on their radios journalists and members of the public gather behind a safety rail a car pulls up in front of the courthouse and parks suddenly the crowd begins to murmur photographers raise their cameras and when the door to the car opens a man with silver hair and a dark suit steps out it's bernie madoff and by now he's used to the feeling of people gawking it's not just that madoff is one of the richest men in the world or a legend on wall street madoff has been making international headlines recently for other reasons three months ago he was arrested and charged with committing one of the largest acts of fraud in the history of finance the newspapers have made him to look like a monster and as madoff walks up the stairs and into the courthouse he knows that today the public is hungry but he isn't going down without a fight he believes that there is still a chance he could walk away a free man madoff enters courtroom 24b and takes a moment to compose himself the air is hot and stuffy but madoff tightens his tie buttons his jacket he knows he has to be poised and collected no matter how scared he actually feels because soon he's going to make a statement that will change the course of his trial [Music] madoff walks over to the defendant's table and takes a seat soon a courtroom door opens and the judge enters in a flowing black robe the room falls silent as the judge makes his way up to the dais the court will now hear from maureen ebel madoff winces and glanz's right he sees a 60 year old woman approaching the stand she's wearing a cheap purple suit and looks worn down this is bad news for madoff he hoped that today he get the chance to just enter his plea and make himself look like a decent person someone who shouldn't go to prison but with this move the judge has now allowed witnesses to give testimony before madoff speaks the older woman takes a seat on the witness stand and the judge looks down from his bench miss ebel you've asked to speak today before i hear the plea of bernie madoff may i ask why because i want everyone to know what kind of creature stands on trial today and what ms evil did he do to you evil pauses and bites her lower lip last year on december 11th i got a call it was 10 45 pm it's my uncle i figured calling that late there must have been some kind of disaster or maybe a death in the family so why did he call he told me that bernie madoff this man sitting right here has just been charged with fraud i gave bernie my entire life savings my uncle told me all the money was gone miss evil how much money did you lose everything all of it i spent a lifetime working as a nurse my late husband left me his savings all together 7.3 million dollars and it was all gone i had to sell everything i even started picking up nickels on the sidewalk all because of this man evil points a finger at the defendant's table and madoff takes a deep breath this looks bad but the trial isn't over not yet the judge bows his head and looks back at evil what do you hope will come from this day miss siegel i pray that bernie madoff will suffer nothing less than the full weight of the law mrs ebel thank you for your testimony as evil descends from the stand she glares one last time it made off but he knows he needs to give her a gentle nod one that shows that he understands her pain because cord is no different from the outside world appearance is everything the judge then calls the next witness and soon he calls the one after that madoff listens patiently to an onslaught of anger and recrimination finally the judge asks madoff to rise he reminds madoff that he's been accused of a large number of crimes including securities fraud money laundering perjury and theft the maximum sentence is 150 years the judge then asks madoff how he wishes to plea madoff holds his head up he's always been good at persuading people to do what he wants and right now he needs to channel that skill to save himself from prison because he knows it's not too late madoff has never been a loser and that's not gonna change now from wondering i'm lindsey graham and this is american scandal [Music] [Applause] in 2008 americans lived through one of the largest economic collapses in the nation's history workers were laid off retirement accounts seemed to vanish overnight and countless people lost their homes this crisis would come to be known as the great recession and as it unfolded many began to glimpse two very different realities in america there were those who struggled to stay afloat and then there were those who were rich and only getting richer it was late that year when the public learned how one man had made a massive fortune he was a financier named bernie madoff he was accused of leading an elaborate financial scam thousands of investors had lost their money including charities teachers blue-collar workers and synagogues madoff was instantly reviled as one of the greatest con men in american history yet madoff had also been a legend on wall street he was even the former chairman of the stock exchange nasdaq and as details of his story trickled out the nation was left to wonder how for decades could madoff have tricked investors in the federal government and how was he able to conceal his secrets from even his own family this is episode 1 sins of the father [Music] it's late july 1956 and nearly 53 years before bernie madoff will stand trial in a federal courthouse today it's a hot summer afternoon in queens new york in a small suburban neighborhood where the air is heavy and humid and filled with the sound of air conditioners everyone seems to be indoors cooling off and watching tv but bernie madoff isn't so lucky with a loud clang he bangs his wrench against a sprinkler head but it won't budge he wipes his forehead digs his feet into the grass and hits the sprinkler again it still doesn't move and so with one last try he he's all his weight into the wrench and finally it turned slightly made off collapses and relief as a bead of sweat drips into his eye bernie made off his working his summer job installing a new sprinkler system for a neighbor it isn't how he wanted to spend the summer after his senior year in high school he wishes he could be out swimming and goofing around with his friends but he had no choice he had to make money there was no other option not after everything that happened with his father [Music] madoff leans forward and begins to tinker with a broken sprinkler that's when he hears his name being called he looks over and sees the lady of the house she's an old friend of madoff's mother and she's standing at her front door waving him over madoff gets up and wipes his pants then he trudges over to the front door the woman tells madoff that she needs to go shopping and so she's going to pay him now she rummages through her purse searching for money madoff waits on the porch and peers inside the house he sees one of his classmates sitting in the living room watching tv boys laughing drinking lemonade he looks like he doesn't have a care in the world madoff wipes a sweat from his face he looks down and notices a dirty smudge on his hands he'd give anything to be inside and watching tv doing almost anything other than the sweat and frustration he's been experiencing all day but it doesn't matter how badly he wants it relaxing in front of a tv is out of the question for one mados family doesn't even own a tv not anymore they had to sell it just like they had to sell everything else madoff's father made some bad business decisions and he went bankrupt again that's why madoff has spent this whole summer installing sprinklers it's the only way he can make money madoff looks up at the woman standing in the doorway she finishes searching through her purse and lays four dollars and fifty cents in his hand she nods and says it's not a mistake she included an extra dollar it's for madoff and for his family then she gives made off a smile that drips with pity and tells him everyone is worried madoff squeezes the money in his fist his face burns with humiliation more than anything he wants to hurl the money at this woman and tell her he doesn't want her charity he doesn't need it but he knows you can't do that because it's true he and his family do need every dollar in cent they can get so madoff smiles and thanks the woman he takes a last look at his classmate who's still lounging in front of the tv and then he heads back out onto the lawn and into the sun madoff kneels down on the grass and yanks at the sprinkler head he then pauses and shuts his eyes it's right then that he makes up his mind for good someday he's gonna make money lots of it because he won't ever let himself feel this small again [Music] a year later bernie made offsets in his family's living room waiting for dinner his stomach grumbles and made off grits his teeth feeling annoyed and impatient bernie's father ralph sits nearby on an old couch ralph taps his foot and keeps flipping the pages of a life magazine he nearly tears the pages out as he flips them angrily the magazine is now several months old but it's all they've had for entertainment and bernie knows his father is sending a clear message he's angry and tired but bernie doesn't believe his father has any right to be angry there's a reason they don't have a tv or anything else to read there's a reason that dinner is late and that reason is bernie's father and his failures as a businessman ralph ran a manufacturing business and was involved in stock trading and after some bad decisions he had to file for bankruptcy and that's why these days bernie's mother has to support the family after his father's business went under his mother took a job in a local blood bank that means dinner has been coming later and later as she puts in extra hours for a little more money [Applause] bernie watches his father flip through the pages when suddenly he feels something inside him snap hey pop enjoying your old magazine of course not all we've got is garbage yeah but it's our garbage the garbage we know i'd take that garbage over a new tv or new magazines or a new radio boy you think you're funny well maybe i'm not funny but i am hungry i'm tired of waiting well i'm not the one in charge of dinner so blame your mother well i would if she weren't also the one paying the bills bernie watches as his father's cheeks grow flush ralph sits down the magazine and his nostrils begin to flare you think i'm not good enough for this family don't you now all i'm saying is you could learn a lesson or two from mike's dad you're talking about art libre bomb now what do i have to learn from that schmuck oh about a million things he bought stock and polaroid and just yesterday polaroid went public on the new york stock exchange now he's a millionaire overnight i'd say that's a lesson you could learn bernie sees his father grow visibly tense he knows that he's picked a fight and he probably just wounded his father's pride it's no secret that ralph had been hurting ever since his business went under he seems angry whenever he's reminded that his wife is the breadwinner but bernie knows that sometimes people are like horses they just need a kick to get them going still his father scowls and shakes his head yeah well i guess some guys have all the luck there's nothing lucky about buying that stock he made a choice and he doesn't pretend like he's a victim at that ralph rises from the couch he steps up to bernie and holds his face inches away now you listen to me kid some people get lucky some don't and mark my word lieberbaum's gonna find out that luck runs in streaks with that ralph madoff turns and stomps away exhales and sinks back into his chair and he stares off into the kitchen dinner still won't be ready for a while not until his mother gets home from work bernie's stomach grumbles audibly but despite his hunger he suddenly feels a small electric tingle of excitement he realizes there's nothing special about art libre bomb if he made a million dollars then bernie can make that kind of money too it's 1959 bernie madoff lies on his twin bed reading an article in the wall street journal it's about how technology is revolutionizing finance the industry is changing rapidly there are now millions of dollars up for grabs madoff finishes the article and lets the paper drop to the floor he gazes around his bedroom feeling a wave of bitterness rising inside him two years ago madoff resolved to get rich to make something of himself but somehow he's still living in his parents house and he's still poor his life does not look like it's supposed to in part that's because he let his mother sylvia convince him to go to law school she said being a lawyer was a safe way to make money and get some stability at the time he thought she was right but now sitting in his childhood bedroom he can't believe he went along with the plan he's now in his early 20s engaged to get married but still broke and still living at home while he finishes law school feels like high school all over again making things worse he doesn't like law school the law has no buzz no speed no risk or reward makes him feel like he's sitting still going nowhere bernie rises and looks out the window high above he can make out the white trail of a soaring airplane it's hurtling through the sky going somewhere fast somewhere far away bernie swallows hard he knows it's time to make a decision it's time to start living the life he wants so he turns and leaves the bedroom then he makes his way downstairs where he finds his mother sylvia wiping the counters he stands in front of her his heart racing his palms sweaty but he knows what he has to say a moment later his mother looks up and bernie makes the announcement he's quitting law school he's going into finance that's his dream and he needs to pursue it sylvia sits down a rag and stares at bernie he knows that he needs to start explaining himself so he tells her about all the new things he's seeing in the world jets are soaring through the skies there are computers that can run calculations thousands of times faster than a person with technology everything everywhere is on the cusp of revolution with so much changing there are now new ways to make a fortune and that's what he's going to do sylvia doesn't speak she just looks at bernie with tired eyes bernie knows that she lived through the great depression she watched her husband fail multiple times while trying to make a quick buck he knows that that's the last thing she wants for him to take a risk with his future sylvia steps forward and says exactly that but she also says she's worried about something else no reputable firm would hire a jewish kid from queens madoff's live in a different world from all those titans of finance so she asks where does bernie plan to work bernie looks down at the floor gathering courage then he tells his mother that he's going to start his own shop all the other firms are slow steeped in old ways and that's why he'll have the advantage he'll use technology and he can guarantee he'll come out the winner sylvia picks up her rag and once again begins wiping down the counter with a quiet voice she tells bernie that his father used to make the same kind of promises bernie feels himself grow cold he's not like his father all his father does is sit around complain blame others for his own failures that's not how bernie lives he knows that life is a series of choices you can choose to be successful or he can choose to get left behind bernie madoff has chosen to be a winner so he turns walks away from his mom heads back to his bedroom and starts to plan everything he's going to pack he can't live at home much longer and he won't live like this anymore off in the distance he can hear the rumble of another jet that's slicing through the air and all at once he feels driven with a sense of purpose soon he's going to make something of himself and soon he's not only going to make millions he's going to revolutionize wall street american scandal is sponsored by better help life throws us curveballs like right now i'm recording this from my daughter's bunk bed in a makeshift pillow fort studio because north texas is experiencing the coldest weather it's seen in decades and the power's out at the studio one or two curve balls that's fine but pillow forts don't do much if they keep coming at you and your own feelings become an obstacle if it's getting too much for you better help is there for you better help will assess your needs and match you with your own licensed professional therapist someone you can 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exactly what you get grubhub allows me to get breakfast lunch dinner or some random cravings moment delivered right to my door quick and delicious i can get anything pizza tacos sushi burgers salads sandwiches and soups if it's edible it's available from local restaurants or national favorites like mcdonald's chipotle taco bell and panera and grubhub's perks makes it even more worthwhile download the grubhub app to discover daily delivery deals free food and other rewards get back for ordering in and then for those who truly appreciate value there's grubhub plus unlimited free delivery a free 10 pickup meal every month and even more exclusive member perks looking at my app right now i've got 23 dollars worth of perks redeemable right now so get the food you love with perks from grubhub grub what you love it's 1962. inside a small office in downtown manhattan bernie made off paces nervously any minute now a meeting is set to begin a meeting that could make or break his startup business bernard l madoff investment securities madoff is just 24 years old and has put his hopes and dreams into this company along with all of his savings finally he's working as an investor he has the chance to make some real money but right now he's close to broke which is why this meeting has to go perfectly madoff continues pacing through his office but then stops to admire a big machine sitting on a desk it's an ibm 1401 computer stacks of punch cards sit on the computer's panel this machine is what cost madoff and his brother peter all of their money they had faith that the new technology would give them an advantage on wall street but now he's about to learn whether that faith was misguided there's a knock on the door and madoff opens it standing before him is his brother peter he looks solemn and says their guest has arrived bernie nods stealing one last glance at the computer he only hopes this gamble will have been worth it then he turns his frown into an easy grin and steps into the hallway bernie passes through the office and smiles at his beautiful wife ruth she winks back just like peter she also works for the firm it's a family business but that's not what sets them apart and that's not how bernie's going to sell his services to the man who's now standing in front of him carl shapiro is small in stature but he's a major force in the world of business shapiro is a king in the garment industry and he's the owner of a vast fortune he's also connected to a network of wealthy investors a mutual friend introduced him and today madoff is hoping to convince shapiro to invest in the firm if all goes well maybe shapiro will recommend the firm to some of his friends the two men shake hands and then bernie and peter launch into their pitch bernie explains that their firm has a distinct advantage peter is an expert with technology and with their mainframe computer they can run trades 300 times faster than their closest competitors shapiro squints and asks why that matters bernie leans forward and smiles he explains that by using their technology they'll be able to get money into shapiro's pockets before the other guys even have time to write up a deal trading faster means making more money shapiro sits still his expression inscrutable bernie has seen this look before though and he knows what it means this man thinks bernie is either stupid or crazy either way the answer will be a no but then without breaking eye contact shapiro nods and says all right he'll send made off 100 000 to start an account and if he likes the results he'll send more then shapiro stands and walks out of the office for a moment bernie madoff is stunned he turns to peter with a look of disbelief but then peter jumps out of his chair and wraps bernie in a hug all at once the truth hits him they have money real money more than they could ever imagine and now he's got a connection to an entire network of investors things are happening and they're happening fast but as his brother peter and his wife ruth break into celebration bernie is hit with another stark truth bernie has to deliver on his promises [Music] seventeen years later man walks up to the entrance of a large beach house in montauk new york the sun beats down as pale skin and puma sneakers man takes out a marble red and lights it up as he takes a deep drag he breathes in the salty smell of the atlantic and catches a hint of expensive designer perfume the world smells different out here on the tip of long island it's different from queens new york for sure that's where this man frank d pascali jr has spent most of his life steve pascali is 22 years old and he still thinks of himself as a poor kid from a tough neighborhood what he sees here at this beach house is the future he wants for himself he drops a cigarette and grinds it out then he heads inside as soon as he enters the house he catches a glimpse of bernie madoff standing on the deck with his friends they're all in polos wearing shiny rolex watches they look tan and powerful deepascali is certain that these are the kings of the world this isn't the first time he's seen madoff deepascali works for madoff's company which after about two decades has grown into one of the most powerful investment firms in new york the company is a living example of the american dream madoff started with nothing and single-handedly built himself an empire deepascali has felt lucky to be part of all the action working alongside peter madoff bernie's brother still even after four years at madoff securities no one at the company seems to know deepascali some even mistake him for the janitor that's why he came here today to this beach party at bernie madoff's new house dee pascali knows it's time to make a move and start climbing higher up the ladder he'll do whatever it takes to start living like madoff like a king dee pascali weaves his way through the house past men and women and designer sunglasses he knows he doesn't look like someone who belongs here but d piscali puffs up his chest and keeps walking he won't let their judgement get in the way deepest galley steps out into the yard where paving stones stretch from the pool to the deck that's where madoff is standing right now talking with a group of men as deepascali stares at madoff he can sense a glow that hovers over this legendary investor he has the reputation as new york's king midas everything madoff touches turns to gold a minute later madoff looks up and catches deepa scally's eyes he smiles and waves him over deepest galley walks across the yard listening to the sound of waves crashing on the shore soon he reaches the deck and madoff claps him on the shoulder made off chuckles says he noticed that deepascali was doing a bit of staring he asks whether deepascali likes what he sees the beachfront property the bottles of champagne the beautiful women the piscalli raises his eyebrows and tells madoff it's an easy yes for all three madoff laughs and mentions that there was no hesitation in deepascali's answer deepascalet gazes out over the property and says to madoff that when you know what you want you go for it you don't apologize or make excuses for yourself made off pauses d piscali notices a slight smirk on his face and for a moment he feels a rising sense of fear should he have been more respectful more professional he shouldn't have talked like some thug in the streets perhaps but then madoff claps him on the shoulder again and tells dee pascali to follow him together the two walk to the edge of the deck and stare out at the ocean [Applause] madoff then tells deepascali that he's heard about him madoff's brother peter speaks highly of him he says that deepascali isn't just smart and good with tech peter says that deepest cali is a neighborhood guy someone you can trust then made off turns to dipascali and asks if he'd be interested in taking on more responsibility and again without hesitation deep ascali says yes he'll be tireless and no matter the situation he'll remain loyal to madoff it's a bond that won't be broken madoff takes a sip of champagne as he looks out over the ocean again he tells deepascali that it's all set then he should report to madoff on monday and not his brother then he turns and walks back to the party dee pascali feels a warm glow filling his whole body he knows that just now he received the golden touch from king midas himself and from here on out nothing can go wrong [Music] it's eight years later on monday october 19 1987 bernie madoff stands with his eyes closed trying to calm himself trying to drown out the noise he knows he needs to focus for a moment he goes to that quiet place just him and his thoughts and a voice that says he can get through this that he's not going to lose that it's not his time yet [Applause] madoff opens his eyes all at once the noise returns voices shouting bodies rushing by in every direction stock traders grab their faces in agony and shout orders into their phones madoff watches the madness unfold inside the headquarters of bernard l madoff investment securities despite the chaos madoff feels ready to take action he's now 49 years old and knows how to manage a crisis and this appears to be the mother of all crises madoff looks at a wall monitor where stock prices stream by at a relentless pace alongside all of those numbers red arrows point down right now the market is in free fall and it's not just a minor blip the market hasn't plummeted this much and this quickly since 1929 already people are calling the day black monday it's bad and madoff isn't laboring under any illusions the market could wipe out everything he's built over the last 25 years and not just his wealth but today could destroy his reputation too madoff has grown to be a legend on wall street and the media has called him a genius but madoff knows that could all disappear unless he acts fast and that's what he plans to do so madoff races out of his office and heads downstairs to the 17th floor madoff enters the office and spots his loyal associate frank dipascali dipascali is dressed in a fine suit he's come a long way from the rough streets of queens from his early days at the firm now he looks the part of a rich successful trainer but even with a quick glance madoff can see the terror and anxiety on deepest cali's face as he cradles a phone on his shoulder bernie bernie people keep calling they want to cash out what do i do hang up the phone but these are clients hang up on them frank they'll call back deepa scally drops the phone and waits for madoff to speak listen frank the market's in free fall that means everyone is in free fall people are panicking yeah no kidding they're panicking their money is evaporating okay that's what they believe but what if the money isn't disappearing what are you talking about it's disappearing look at these prices it's a dumpster fire listen frank and listen closely every person who calls you tell them we're seeing a massive market correction but you also say that i saw it coming that's crucial that you tell them that i was prepared say that last week i moved all their money into treasury bills government bonds one hundred percent safe got it tell them that they haven't lost a dollar d piscali rubs his temples looking very worried madoff knows that he's just instructed d piscali to lie bernie our clients want their cash so what am i supposed to do you pay them pay them with what money we have money there are other people who aren't cashing out wait no no we can't we can't mingle accounts i can't i can't steal from one to pay another frank we're not stealing don't say words like that it's borrowing it's temporary and as soon as the market re-corrects we'll restock those accounts and what if the market doesn't come back well then we're dead anyways right this at least gives us a chance madoff can see the look of anguish on deepascali's face this plane is clearly making him uncomfortable so madoff leans in praying years ago you told me you'd be loyal a bond between the two of us you do what i needed you to do well this is the day and now is the time so pick up the phone and do what this firm needs you to do dpskali swallows hard then he picks up the phone and begins to recite the story bernie madoff saw this coming he protected all of his clients the money is safe madoff feels his muscles relaxing feels good in control because even as the rest of the world panics madoff knows he'll stay on top he'll fix this little problem when the time is right and in the meantime he'll continue to rake in millions of dollars and remain the king of wall street american scandal is sponsored by honey like i mentioned i'm snowed in no trips to the store no going anywhere but over the past year especially we've all grown used to shopping online for almost everything and many outlets offer amazing deals if you have the right coupon code but what if you don't how much are you overpaying no 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is at home in his luxury penthouse on manhattan's fifth avenue he's drinking coffee reading the financial news as he prepares his investment strategy for the coming year black monday may have devastated the market but madoff's firm has survived just fine it's true madoff hasn't fully replenished the accounts that he borrowed money from but so far all his clients have remained happy and madoff has remained on top of the financial world he's now not only a legendary investor he's the chairman of nasdaq [Music] [Applause] madoff flips another page of the newspaper when his phone rings in the other room he stands and strides across marvel floors up an elliptical staircase into his library and picks up the phone hello this is bernie bernie it's michael pianis madoff scratches his chin he and biennis are business partners and the man used to work alongside madoff's father-in-law but it's not like being asked to call mate off at home michael what what can i do for you bernie this is serious so i'll get right to it i'm under investigation it's the sec and it's looking bad the feds what are they how on you well it's not just me bernie it's both of us both of us what do you mean both of us you're an accountant what does my investment firm have to do with your business that's the thing i'm an accountant but how long has it been since we started investing with you 30 years uh yeah about 30 years yeah so you know where this is going it's not our own money it's our clients money we've been taking their money and investing it with you which we're not allowed to do because of the sec rules i know what the sec rule says you're not licensed you're accountants but you've been investing your clients money that's right and let me guess now you want all your clients money back well it's not that we want the money back it's that we need it back how much i don't have the books in front of me made off waits for a response but the line goes quiet michael what's the total bernie it's 441 million dollars and you need all of it plus any interest and if i don't get you the money yeah then the sec isn't just going to come after me madoff hunches forward and rubs a hand through his hair he knows he has no choice he has to come up with the money if he doesn't the sec will start digging around and they'll learn the truth they'll see how he siphoned off money from his own client's accounts and he'll go to prison but he has a problem he doesn't know how he's supposed to get that kind of money paying out 441 million dollars could ruin him madoff stands and begins to walk around his library he knows that there's a silver lining here there always is somehow he'll figure it out but in the meantime he has to keep vienna's from making things any worse so with a steady voice he tells biennis not to worry he'll get him the money soon [Music] two weeks later frank dipascali sits in front of a computer screen staring at rows and rows of green text there are client names investments dollar figures and a blinking cursor waiting for his command d pascali chews on the rim of a styrofoam cup cold coffee sloshes around at the bottom and he bangs the table and stands up he can't do this he can't follow the orders that bernie madoff just gave him madoff told him to liquidate every one of their accounts all of them all the clients and all their investments the pascali was then supposed to pool the cash without saying anything to the clients madoff said this was their only option they needed to come up with 441 million dollars otherwise they were done for days prior d pascali had been trying to help madoff come up with the money the methods they thought about were unsavory including skimming off the top of big dollar investors but even then they were still hundreds of millions of dollars short so now it's come to this in five minutes when the stock exchange opens deepa scally is supposed to initiate the sell orders he rises and hurls his chewed up cup of coffee into the trash deep pascali knows he can't do this he may have come from some rough streets and he may have done some illegal things in 87 but this is something else entirely this is theft at the biggest scale so deepascali makes a decision he picks up the phone he needs to call the police and go on record before anything happens he knows he'll get charged for the other crimes but that's nothing compared to this then right as deepas galley begins to dial the door bursts open and madoff enters the office mados wheeling in a three foot tall ibm computer ranting that he's got a solution it's going to fix all their problems so deepascali sets down the phone he looks at madoff waiting for an explanation madoff walks over and sits down on the desk then he explains the new scheme madoff says that he found a couple of people who agreed to invest 50 million dollars in the next two weeks made off smiles and said that 50 million is of course less than 441 but it will help them cover their tracks steve pascali frowns and asks madoff what he's talking about madoff continues explaining that they'll still liquidate all the investments from all their clients but they can take the new 50 million dollars and add it to the new bank account with this pool of cash they can then pay investors tell the clients that the money comes from their actual investments from dividends on stock money is money and the clients won't know the difference madoff then gets up and walks over to the ibm computer he gives it a pat and smiles then he tells d piscali that it's this machine that's the key dpescali just needs to program the computer and get it to spit out fake reports those pages will look like real dividend reports from real companies the clients will still get paid and they'll stay happy and over time madoff and d pascali will make things right they'll dig themselves out from this hole d-pascal's stares at madoff he's dumbstruck madoff wants to add another layer of deception and theft on top of his already insane scheme if they do this there's no coming back madoff looks up at the clock d piscali follows his eyes it's 9 30 a.m the exchange is now open madoff approaches deepass galley with a coldness in his eyes he says there are two options they can run this ponzi scheme which will buy them some time or the two of them can go to prison for everything they've already done deep ass callie feels light-headed and dizzy he wants to lie down to sleep and think this over but madoff isn't waiting he commands d pascali to begin selling he reminds him to sell everything then madoff walks out the door and shuts it behind him d-pass galley looks back at the computer screen he stares at the rows of green text the list of clients names and their investments it doesn't feel real just numbers on a small screen and it's then that d-pascale realizes that madoff is right he's out of options he's already a guilty man there's nothing else he can do so he begins typing a command on the keyboard it appears in green letters on the screen cell then he goes down to a second line and types it again and again he continues line after line until his eyes begin to blur and it doesn't seem like he's doing anything wrong when he finishes d-pascali sits back in disbelief he and birdie madoff have just launched one of the biggest scams the world has ever seen [Music] next on american scandal bernie madoff fights an investigation by the government and a financial analyst begins digging into mados records and raising alarms about a potential ponzi scheme from wondering this is episode one of bernie madoff for american scandal if you like our show please give us a five star rating and leave a review and be sure to tell your friends subscribe on apple podcast spotify or wherever you're listening right now join wandery plus in the one react to listen to episodes one week early and add free you'll also find some links and offers from our sponsors in the episode notes supporting them helps us keep offering our shows for free another way you can support the show is by filling out a small survey at wondry.com survey to tell us what topics we might cover next you can also find us and me on twitter search for hashtag american scandal or follow me at lindsaya graham and be sure to listen to my other podcast too american history tellers and business movers a quick note about our reenactments in most cases we can't know exactly what was said but all our dramatizations are based on historical research if you'd like to learn more about bernie madoff we recommend the book the wizard of lies by diana enriquez american scandal is hosted edited and executed produced by me lindsey graham for airship audio editing by molly bach sound designed by derek barrons music by lindsey graham this episode is written by charles olivier edited by dave kane our senior producer is gabe riven executive producers are stephanie jens jenny lauer beckman and hernan lopez for wondering you

Channel: Wondery

Views: 73,216

Keywords: wondery, wondery podcast american scandal, american scandal, american scandal podcast, wondery american scandal, bernie madoff, bernie madoff american scandal, american scandal full episode, american scandal 2021 full episode, american scandal bernie madoff, full wondery podcast episode, bernie madoff podcast, bernie madoff explained, bernie madoff 60 minutes, bernie madoff story, bernie madoff biography, bernie madoff movie, madoff 60 minutes, madoff scandal, madoff podcast

Id: T8tJuT1a8XU

Length: 44min 37sec (2677 seconds)

Published: Wed Feb 17 2021