I came across a segment of “60 minutes” several weeks ago wherein the wife and the son of Bernie Madoff were being interviewed. The wife revealed that the amount her husband defrauded from investors was about $67 billion dollars. Sixty seven billions? What can $67b buy? What did one person who it appears kept the secret of this crime to himself; do to $67 billion today?
The other day, a business report announced that TD Canada Trust is at present the biggest bank in Canada; its earnings were greater than the former No 1 bank, Royal Bank. It mentioned that Royal Bank is worth about $63 billion. This bank that employs hundreds of people is less in value than the amount defrauded by one person. Bernie Madoff could have bought Royal bank or TD Canada Trust. Where did that enormous amount of money go?
Bernie Madoff had a yacht, several mansions in the United States and other parts of the world, expensive jewellery for his wife and businesses run by his two sons.
But the total of his disclosed assets was far below the amount people invested in his financial organization. A bunch of corporation lawyers are still trying to trace where that money went.
Bernie Madoff is now in prison and will probably be there until his last day on earth. One of his sons committed suicide. He was not able to cope with the enormous shame and suspicion that he was a part of his father’s crime. His son’s wife said that she would never ever forgive her father-in-law for killing her husband.
Bernie Madoff’s wife lives in fear and shame for what her husband had done. She is aware that many people could not believe that she and her sons did not have a hand in this fraud that lasted for years.
Bernie Maddoff was a respected financier that was a member of the jet-set before his crime was exposed. He was a member of several boards of corporations and rubbed shoulders with the so called top four hundred. He had his offices in one of the most prestigious buildings in New York. He and his wife lived in a multi-million penthouse. He appeared to have the Midas touch that earned the confidence and the faith of many investors.
Those who entrusted their money to him were of a mixed kind; – multimillionaires who are in big businesses as well as middle-class families of professionals, who have children in colleges and universities, and pensioners who had fixed incomes and savings that they believe would take care of them in their old age.
These were the people who woke up one morning to learn that all their money was gone. This happened at a time when the national economy was at the brink of a recession and most investors were losing considerable amount of money. But this was different. Their money was stolen, all gone.
I am not a Madoff investor but I could imagine how his victims must have felt when the news came out. I believe there were some who did not want it known that they were among those defrauded. There was the embarrassment that a person of certain social and professional stature entrusted his money to a person not worthy of such trust.
Then there were those who depended on that investment for the schooling of their children in colleges and universities. What did they do? And worst of all, those who invested all of their savings for retirement and old age in this financial agency. Many of them went back to work, I heard of someone who died not long after the crime was exposed due to anger, insecurity and resentment.
What made people invest money in Madoff’s financial empire? Why did they not put their savings in banks or in other forms of investments? The most possible response is that there was the promise of higher interest. Then there could have been the recommendation of earlier investors who received more earnings from their money than what banks were able to give. The high prestige of the head of the financial organization could have been another factor.
This brings to mind what is happening in the Filipino community today.
First, there was that lady in a dry cleaning place who told some of her customers about her “connections” with some people in the office of the Immigration. She confided that she could expedite the arrival of relatives with some financial compensation. We are used to this “padulas” in the Philippines and several customers agreed to the arrangement suggested. Money changed hands and hopes rose for the arrival of the relatives. But nothing happened. The woman denied having made the promise and the relatives are now complaining to the proper authorities.
More recently, there was this news of a Filipino, who was working in a doctor’s office who encouraged her “mga kababayan” to invest in a physiotherapy and rehabilitation clinic that she is opening. Some hardworking men and women were attracted to invest because of the high rate of income promised. One of them was regularly sending money to relatives at home and she thought this investment would help her give more to her family. Another lady received a considerable amount of money as settlement compensation for her mother who was seriously hurt in an accident. She also invested her money with this woman. There were several other victims who have been duped of the amount reaching $1.5 million.
The woman went missing and was reported seen in a beach in the Caribbean. A few days ago, she was seen in a townhouse in North York. She is not ready yet to face her accusers.
In one of the workshops welcoming newcomers to Canada, a member of Toronto Police Department warned the participants about being deceived by members of your own community. The cases previously mentioned are good examples of being defrauded by one of your own
You are a stranger in a new land. You are looking for someone who could possibly help you. A “kababayan” is likely someone you would trust. Unfortunately there are those among us who would take advantage of our vulnerabilities.
“Pagtitiwala” is a big word in Filipino. It goes beyond just confidence. It includes faith in whom we give our “:pagtitiwala” Those who invested in Bernie Madoff’s financial agency had that “pagtitiwala” in him because of his awesome image in society. But take note: it was an image; not the real person. Let us try to see the real person, not the image, in those we trust.****
