Making off with Madoff

A lot of Americans may hate Bernard Madoff, but they’re certainly curious about this man responsible for running the biggest Ponzi scam in US history estimated at $65 billion. At the recent New York auction of items that once belonged to Madoff and his wife Ruth, more than 500 people and a thousand online participants tried to outbid each other to make off with a piece of Madoff and enjoy the vicarious thrill of tasting a slice of his lifestyle. The room where the auction was held at The Sheraton gave the impression of a yard sale, with tables full of old items from watches to personalized Post-it notes, a cow-shaped creamer, a milking stool, to watches, jewelry and even the family dog bowl. Everything went up for sale, with curiosity seekers mingling with serious bidders.

Bidders went into bouts of frenzy over items that were signed by Madoff or had his name on it, like a New York Mets baseball jacket that sold for $14,500 – more than its estimated value of $500 – because the back was embroidered with “Madoff.” The scammer’s school ring from Hofstra College had the initials BLM engraved on it, and it fetched $6,000. A Boogie board marked with “Madoff” in black pen sold for $1,000, while three polo shirts that had the name of the former Wall Street whiz’s yacht, Bull, went for $1,300.

It was obvious that Madoff loved Rolexes, and kibitzers said one particular timepiece that would be appropriate for Bernie now that he’s in prison serving a 150-year jail term is the Monoblocco or the Prisoner’s Watch, so-called because the timepieces were sold to British prisoners of war during World War II. Unlike the other items though which fetched double and even quadruple the prices, this particular watch was sold for $65,000, way below its estimated maximum value of $87,500.

Proceeds of the sale totaled more than $1 million – double the amount expected by the auctioneers. Madoff’s other properties will also go on the block, like his Upper Eastside home in New York, his Palm Beach property, his three boats, a yacht, a Mercedes and even his clothes. All the proceeds will be given to the victims of his 20-year scam – but the amount will definitely be just a drop in the bucket compared to the billions he had swindled over the years. Charity foundations, businessmen, celebrities and former actresses like Zsa Zsa Gabor, now 92, were among those who were gypped of their money by the former financier.

Many of those who were in the auction said they took part to see what a “lowlife” like Madoff owned, expressing anger that a lot of the items were bought with other people’s money. Still others had posterity in mind, saying they will show the items to their kids some day, while many wanted the items as a reminder that “if something sounds too good to be true, then it’s probably not right.”

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Americans are still jittery at the precarious financial situation in the US, with a recent survey disclosing that about 60 percent are delaying their retirement for at least a year. Still another 27 percent are delaying retirement for five years, which only goes to show that many are still not confident of an economic recovery. According to the report, Americans have drastically changed their lifestyles, with 80 percent spending less on entertainment while 78 percent said they are eating out less. Still others have cut off on their holiday shopping, while almost 40 percent admitted delaying a routine medical procedure.

The ballooning budget deficit – placed at $1.4 trillion in the 2009 fiscal year and expected to rise to $1.502 trillion in 2010 – has also been a cause for worry, triggering fears that the huge debt will bankrupt the coming generation of Americans. US president Barack Obama himself had admitted the ballooning US debt will not be good in the long run, saying that a “debt-driven growth cannot fuel America’s long-term prosperity.”

Ordinary Americans, however, are more worried about their personal income deficits with unemployment jumping to 9.8 percent and expected to go higher. Obama and his economic team certainly have a long way to go in trying to figure out how to nudge the lethargic economy into the kind of growth that would reduce debt, boost jobs, promote exports – without threatening the US president’s own political fortune.

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Philippine Ambassador to Japan Jun Siazon called me from Tokyo to say that his position regarding the lease of the Fujimi property in Japan has not changed (Takin’ Care of Business Nov. 12 column). Ambassador Siazon further said he is against the destruction of the Ambassador’s residence in Fujimi (which is not part of the Reparations Agreement with Japan but was bought in 1944 during the time of President Jose P. Laurel). Contrary to allegations, the Ambassador is not trying to favor the relatives of his wife Kay, whose family business is in veterinary drugs. As for party list representative Salvador Britanico, Ambassador Siazon said the former’s father was the lawyer for the Japanese company, Taisei Corp., which won the bid for the development of the country’s property in Nampeidai.

We were told the government canceled the award of the multibillion-peso contract to the consortium between Nagayama Architects and Tasei Corp. last June because the documents submitted by the said consortium to the bids and awards committee were falsified. According to Justice Secretary Agnes Devanadera, the Nagayama Tasei Consortium failed to show sufficient proof of their existence, and that the signatures of the alleged representatives of the consortium were all forged.

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