Experts say Madoff claim won't help Wilpons
Bernard Madoff's claim that the Mets' owners "knew nothing" about his Ponzi scheme may give them a public relations boost, but it won't help much in their legal battle with the Madoff victims' trustee, legal experts said Wednesday.
In an interview with The New York Times, Madoff said he believed banks and hedge funds must have known about what he was up to in the scam that cost investors more than $20 billion, but that neither his family nor the Wilpons had a clue about what he was doing.
Madoff did not implicate any specific banks.
Coming from a man who lived a giant lie for more than 13 years and deceived thousands of investors as well as government regulators, Madoff's remarks rang hollow, the experts said.
"He is still loyal to his friends," said Columbia University law professor John C. Coffee, who specializes in securities law.
He said Madoff gave very little factual information of use to anyone.
Trustee Irving Picard's complaint against Fred and Jeff Wilpon and their partners asserted they "knew or should have known" that Madoff was a big con artist. Picard is seeking $1 billion from the Mets' owners.
Jerome Reisman, a Garden City attorney who represents Madoff victims, said the imprisoned fraud mastermind has been so deceptive for so long that anything he says is next to worthless in a court of law.
Even if the Wilpons tried to use Madoff's seeming exoneration of them in their battle with Picard, it would bring on more trouble than it is worth, Coffee said.
Madoff on the witness stand would be subject to a detailed cross-examination by Picard about every aspect of his three-decades relationship with the Wilpons, noted Coffee.
"Madoff's exculpatory statements [about the Wilpons] are not going to derail Picard's furor," said Manhattan defense attorney Gerald Shargel.
Legal experts say Picard has strong claims for at least $314 million against the Wilpons over profits they got from Madoff.
But while Madoff's comments won't help the Wilpons, Coffee thinks Picard's quest for another $700 million from them on grounds they should have been aware of the scheme "is pushing the legal envelope."
White-collar crime expert Robert Morvillo agreed. "Nobody has real motive to be part of a Ponzi scheme, because Ponzi schemes collapse," Morvillo said.
Meanwhile, Picard Wednesday flatly denied one statement in the Madoff interview: That Picard traveled to meet with the financial felon in prison.
"At no time did any meeting between the two take place and there has been no direct communication between them at any time," said Picard's counsel, David Sheehan.
Election Day begins ... Trooper suspended without pay ... Harborside residents call for state mediator ... Target comes to Bridgehampton
Election Day begins ... Trooper suspended without pay ... Harborside residents call for state mediator ... Target comes to Bridgehampton