Madoff Should Not Get Off Lightly

This morning, most of my show was dedicated to the Bernie Madoff case, as he is set to be sentenced this morning. The scheme involves billions of dollars lost from firefighters, correction officers, 9/11 widows; not just the wealthy country club investor. No matter who participated, it's a horrific story. The key culprit in all of this the SEC, which failed to do anything about it after SEVEN warnings. Just disgraceful.

In my talking points, or what we call "Glick's Take",  here is my point of view on this:

1. There is a valuable lesson learned for every investor based on this ponzi scheme; know what you're investing in. Just because you have a financial advisor does not mean you should abdicate control of your life savings.

2. Where was the SEC? Has SIPC lived up to their end of the bargain? These two sources of protection failed to protect so what repurcussions do they face? It's deplorable and someone should be held accountable.

3. Bernie Madoff should not get off lightly. The judge in this case has to prove that this behavior is unacceptable.

Note on No. 2 -- the victims have no recourse. You cannot sue the government. It's called Sovereign Immunity. What should make any victim even angrier is the realization that the prosecutor agreed to a deal signed by the judge to give Ruth Madoff $2.5 million in cash and assets. Because the Judge signed off on this plea deal, the victims have no recours but to sue Ruth Madoff directly.

Unfortunately, this story is just beginning. Some experts claim the funds could take a decade to get funneled out to victims. Most will get a tiny fraction of their investment unless they invested directly with Madoff where they'll have a SIPC claim up to $500,000.00. Meanwhile SIPC is understaffed and moving very slowly. Horrible tragedy.

This morning I spoke with victims of Madoff's scheme and with attorneys who gave advice on how to protect your investments. I also talked to local radio show hosts who broadcast to some of the areas where Bernie Madoff victims live. The clips are below.