Acting upon a tip that his investment advisory business was a fraud, two special agents with the FBI met with Bernard Lawrence "Bernie" Madoff in his $7 million Manhattan penthouse on December 11, 2008. According to Special Agent Theodore Cacioppi as set forth in the securities fraud complaint:
After identifying myself, Madoff invited me, and the FBI agent who accompanied me, into his apartment. He acknowledged knowing why we were there. After I stated, "we're here to find out if there's an innocent explanation," Madoff stated, "there is no innocent explanation." Madoff stated, in substance, that he had personally traded and lost money for institutional clients, and that it was all his fault. Madoff further stated, in substance, that he "paid investors with money that wasn't there." Madoff also said that he was "broke" and "insolvent" and that he had decided that "it could not go on," and that he expected to go to jail.
United States v. Madoff, No. 08 MAG 2735 (S.D.N.Y. Dec. 11, 2008). view more