After guilty plea, Madoff goes directly to jail

NEW YORK — Bernard Madoff was sent to jail Thursday after confessing in court to a multibillion-dollar Ponzi scheme, yet the intrigue deepened as embittered victims pressed the government to find out who may have helped him and where the money went.

After a 75-minute hearing at which he pleaded guilty to 11 criminal counts and said he was "deeply sorry and ashamed," Madoff was led away in handcuffs for a future that will differ vastly from the opulent lifestyle he has led.

"I realized that my arrest and this day would inevitably come," Madoff told a packed courtroom in his first public comments since his scheme was revealed in December. "I am painfully aware that I have hurt many, many people."

That was little consolation to the more than two dozen investors who squeezed into the federal courtroom for a glimpse of the man who bilked many out of their life savings in the $65 billion scheme.

"It's about time he went to jail," said victim Mark Labianca. "He should have been in jail from the get-go."

Almost 5,000 investors — including director Steven Spielberg, actor Kevin Bacon and baseball legend Sandy Koufax — were ensnared by the smooth-talking financier who boasted of steady returns through treacherous markets.

Investors applauded as U.S. District Judge Denny Chin rejected Madoff's request to continue living at his Manhattan luxury apartment until his scheduled sentencing June 16.

Yet many victims bridled at the lack of information about how he pulled off the elaborate crime and whether there's any cash left to repay them.

"Investors want some money back," said Sharon Lissauer, a New York model who entrusted her life savings to Madoff. "Even if he spends the rest of his life in jail, that doesn't help me."

Madoff faces a maximum 150 years in prison, though experts predict his sentence will be closer to 20 years, essentially a life term for the 70-year-old.

The hearing made clear that Madoff is refusing to help the government build a case against anyone else.

Repeatedly, Madoff insisted the stock-trading business run by his brother and two sons was entirely legitimate and untainted by his crime. That contradicted the criminal charges against him and statements made in court by Marc Litt, the federal prosecutor handling the case, who said that at times Madoff's firm "would have been unable to operate without the money from this scheme."

Madoff also claimed his fraud began in the early 1990s, not in the 1980s, as the government contends, an assertion that seemed to be aimed at limiting how far back into the family business history the government can reach for restitution.

No relatives have been accused of wrongdoing and all — Madoff's wife, Ruth, his brother Peter and his sons, Mark and Andrew — have denied knowledge of the fraud.

When one of Madoff's victims urged a public trial to shed more light on the crime, Litt promised the government was vigorously investigating what happened to the money and who else was involved, questions that could have been answered by Madoff, then and there, if he were willing.

"Did we get answers? Not at all," said George Nierenberg, an award-winning filmmaker whose family lost almost everything to Madoff. Nierenberg was one of a handful of victims Chin allowed to speak at the hearing.

The inconsistencies between Madoff's version and the government's charges are evidence no plea agreement could be reached, said Joel Cohen, a partner at Clifford Chance and a former federal prosecutor in Brooklyn.

"Clearly, he's light-years away from being cooperative," Cohen said after reviewing a transcript of the hearing. "Essentially, Madoff is saying, 'I'll plead guilty — but I'm not going to plead guilty to exactly what you say I did.' "

After the hearing, Lev Dassin, acting U.S. attorney in Manhattan, said, "While we do not agree with all the assertions made by Mr. Madoff today, these admissions certainly establish his guilt. We are continuing to investigate the fraud and will bring additional charges ... as warranted."

After Madoff's plea was accepted, his lawyer, Ira Lee Sorkin, tried to persuade Chin to allow Madoff to remain free on bail until he is sentenced.

Chin refused. "He has incentive to flee, he has the means to flee, and thus he presents the risk of flight," Chin said. "Bail is revoked."

Sorkin said he will appeal the bail revocation.

Madoff's fraud became a global scheme that ensnared hedge funds, nonprofit groups and celebrities, and destroyed many life savings. He enticed thousands of investors, including Sen. Frank Lautenberg of New Jersey and a charity run by the Nobel Peace Prize laureate Elie Wiesel.

The fraud's collapse erased up to $65 billion that his customers thought they had. It remains unclear where that money went, and whether those victims will see any meaningful restitution.

A court-appointed trustee liquidating Madoff's business has so far only been able to identify about $1 billion in assets to satisfy claims.