Richard Behar has spent a decade communicating with one of the most notorious figures in financial history: Bernie Madoff. His new biography, “Madoff: The Final Word,” delves into the mind of the man behind the largest Ponzi scheme in history, exploring the complexities of Madoff’s character and the impact of his actions.
Madoff’s name may not be in the headlines anymore, but the repercussions of his fraudulent activities continue to resonate. Irving Picard, the court-appointed trustee, is still engaged in a relentless pursuit to recover funds for the victims of Madoff’s scheme. Over 100 legal battles are ongoing, highlighting the enduring fallout from Madoff’s actions.
Behar’s fascination with con artists led him to reach out to Madoff while he was serving a 150-year prison sentence. Their correspondence began shortly after the tragic death of Madoff’s son, Mark, in December 2010. Behar’s initial email expressed condolences, and this gesture opened the door to a complex relationship that spanned nearly ten years.
Throughout their exchanges, Behar and Madoff engaged in approximately 50 phone conversations, exchanged hundreds of emails, and met in person three times. Madoff often expressed frustration with the slow progress of Behar’s biography, even joking that he might not live to see its publication—a grim prediction that ultimately came true when Madoff passed away in April 2021.
Behar’s interest in Madoff stems from a deep curiosity about the psychology of scammers. He reflects on the chilling nature of Madoff’s actions, particularly how he could deceive individuals, including Holocaust survivor Elie Wiesel, while maintaining a facade of normalcy. Behar’s own background, having grown up in foster care, adds a layer of complexity to his fascination with Madoff’s ability to betray those closest to him.
Despite their lengthy correspondence, Behar notes that Madoff never inquired about his personal life. This lack of curiosity was striking to Behar, who speculated that Madoff’s malignant narcissism prevented him from seeing others as fully realized individuals. Madoff’s self-absorption made it difficult for him to empathize with the victims of his fraud.
When asked about remorse, Madoff claimed he felt deep regret for the pain he caused others, yet Behar found it hard to believe. Madoff’s emotional responses seemed muted, and he dismissed the idea of crying at his sentencing, stating he was “cried out.” This emotional detachment raises questions about the authenticity of Madoff’s remorse.
Life in prison was a significant change for Madoff, who described feeling numb. Behar speculates that prison may have provided a sense of relief from the constant stress of running a Ponzi scheme. Madoff’s daily routine included early mornings, reading, and working in various prison jobs, including overseeing the inmates’ computer room—a position that ironically highlighted his lack of technical skills.
Madoff also sought therapy while incarcerated, attending weekly sessions with a psychologist. He expressed that the therapy was beneficial, yet he struggled to find answers to the questions that haunted him about his actions. Madoff was particularly disturbed by media portrayals of him as a sociopath, seeking validation from his therapist about his humanity.
Throughout their conversations, Madoff revealed the immense pressure he felt while operating his scheme. He often spoke to himself in the office, a coping mechanism for the stress. Madoff’s delusions of a “miracle” saving him from his predicament persisted until the end, despite his acknowledgment that he was unlikely to escape the consequences of his actions.
Irving Picard’s role as the trustee has been pivotal in the aftermath of Madoff’s fraud. Picard has dedicated himself to recovering funds for victims, often displaying a fierce determination in his efforts. His approach varies depending on the circumstances of each case, balancing a tough stance against those who profited from Madoff’s scheme with compassion for those who genuinely cannot repay.
Behar emphasizes that many victims of Madoff’s fraud often fail to take responsibility for their own decisions. The allure of Madoff’s consistent high returns blinded many investors to the inherent risks. The SEC’s failure to catch Madoff during his decades-long scheme has led some to believe the government owes them restitution, but Behar argues that the agency’s mandate does not extend to protecting individuals from poor investment choices.
Reflecting on the broader implications of Madoff’s actions, Behar’s biography serves as a reminder of the complexities of human behavior and the consequences of greed. Madoff’s story is not just about a man who deceived thousands; it is also about the psychological underpinnings of his actions and the societal factors that allowed such a scheme to flourish for so long.
In the end, Behar’s decade-long correspondence with Madoff offers a unique perspective on one of history’s most infamous fraudsters. Through their exchanges, Behar sought to unravel the enigma of Madoff’s mind, exploring the motivations and justifications behind his actions. The biography stands as a testament to the enduring impact of Madoff’s fraud and the lessons that can be learned from it.
Source: CNBC
