* Banks, hedge funds showed "willful blindness" -Madoff
* Information not shared with prosecutors -Madoff
* New York Mets principals "knew nothing" -Madoff
* Frail Madoff: Never thought crimes would destroy family
By Jonathan Stempel
NEW YORK, Feb 15 A frail Bernard Madoff, facing
the rest of his life in prison, said a variety of banks and
hedge funds were complicit in and "had to know" about his epic
Ponzi scheme before it was uncovered, The New York Times
In his first interview for publication since his December
2008 arrest, Madoff said banks and hedge funds who dealt with
his investment advisory firm demonstrated a "willful blindness"
toward his activities, and failed to examine discrepancies
between his regulatory filings and other information.
"They had to know," Madoff, described as noticeably thinner
and dressed in khaki prison clothing, said in a visiting room
in the federal prison in Butner, North Carolina. "But the
attitude was sort of, 'If you're doing something wrong, we
don't want to know.'"
Madoff, 72, is serving a 150-year prison sentence for what
prosecutors called his $65 billion Ponzi scheme, which was
uncovered in December 2008.
Irving Picard, a court-appointed trustee seeking money for
Madoff victims, has filed lawsuits seeking tens of billions of
dollars from companies and individuals he believes benefited
from or aided in Madoff's Ponzi scheme.
Among the defendants in these cases is JPMorgan Chase & Co
(JPM.N), long Madoff's principal banker and described by Picard
as "thoroughly complicit" in the Ponzi scheme.
Other defendants include HSBC Holdings Plc (HSBA.L), UBS AG
UBSN.VX, various "feeder funds" that steered money to Madoff,
and the owners of the New York Mets baseball team.
A spokesman for Picard did not immediately return a request
for comment. Picard declined to comment to the newspaper. He
has recovered about $10 billion for victims so far.
Stephen Cutler, JPMorgan's general counsel, at a
presentation on Tuesday said Picard "overreached" in his $6.4
billion lawsuit against the bank, and that JPMorgan "did not
know about or in any way participate in the fraud."
In the Times interview, conducted in conjunction with a
forthcoming book, Madoff acknowledged his guilt and said
nothing could excuse his crimes.
He did not assert that any specific bank or hedge fund knew
about or was an accomplice in his Ponzi scheme, which Picard
said cost investors more than $20 billion.
METS EXECUTIVES DIDN'T KNOW, MADOFF SAYS
But in a Dec. 19 email cited in the Times article, Madoff
said he had been providing Picard with "information I knew
would be instrumental in recovering assets from those people
complicit in the mess I put myself into."
Then, 10 days later, he said "the banks and funds were
complicit in one form or another and my information to Picard
when he was here established this."
As to Mets principals Fred Wilpon and his brother-in-law
Saul Katz, Madoff said: "They knew nothing. They knew
In the Dec. 19 email, Madoff also said he had not shared
his information with federal prosecutors working on criminal
cases related to the fraud.
Eight people have been criminally charged. Madoff, his
right hand man Frank DiPascali, and an outside accountant have
pleaded guilty. Five, all of whom used to work for Madoff, have
pleaded not guilty.
Madoff also told the Times he never thought the collapse of
his Ponzi scheme would cause the kind of fallout that has
befallen his family.
Picard has filed lawsuits against Madoff's wife, Ruth, that
could bankrupt her, while Madoff's son Mark committed suicide
on Dec. 11, 2010, two years after the Ponzi scheme was
Madoff said prison officials would not let him attend his
son's funeral, saying it could pose a "public safety issue." He
later said it would be "cruel" to put his family through what
could be a "media circus" were he to attend.
(Reporting by Jonathan Stempel in New York; Additional
reporting by Clare Baldwin; Editing by Gary Hill)