Customer Reviews

Betrayal: The Life and Lies of Bernie Madoff

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I am totally fascinated by the Madoff case; it's a Wall Street melt-down and a Shakespearean tragedy at the same time. I've now read the two prestige books on the case - "Too Good to Be True" by Erin Arvedlund and "Betrayal: The Life and Lies of Bernie Madoff" by Andrew Kirtzman.

From a reader's standpoint, the books couldn't be more different. Arvedlund's prose is impossibly dry, and she doesn't have the skills or experience to know how to create a narrative. Instead, the facts in her book are laid down like a college term paper, and it's left to the reader to come up with the drive and curiosity to keep going. There are certainly some good points and interesting facts in her book that make it worth plodding through - you get a load of details about Madoff's Wall Street career - but it's a slow, often boring read. Kirtzman is an experienced author, and clearly grasped the epic nature of this story. Even though we all know how it ends, his book keeps you hooked with its stories about Madoff, his family and the people who trusted them. As he develops his characters and tells the stories of their experiences with Madoff and their growing trust in him, you can feel the disaster looming, even as you keep hoping these people can somehow avoid their inevitable fate. When the catastrophe hits, it's a tidal wave that drowns everyone. It's an incredible story, told by a skilled writer. Kirtzman interviewed over 100 people for this book and has great behind-the-scenes stories about the mounting crisis inside the Lipstick Building as the insanity mounts, and the panic inside the feeder funds as their investors start asking questions the executives are hopelessly unable to answer. While Arvedlund's book is admirable, Kirtzman's book is filled with far more gripping details and makes for a great read.

With Bernie Madoff convicted and behind bars the deluge of books on him and his crimes can be unleashed. But considering the investigations into what became of the money lost and his co-conspirators any initial books are little more than a second draft of history, initial news coverage being the typical first draft of history. While these initial books may provide a considerable wealth of information on Madoff himself and what he did they will never be the complete story nor the final word on the subject. Witness the book Disconnected: Deceit and Betrayal at WorldCom, a book so rushed to publication it was out before WorldCom's Bernard Ebbers was even convicted. "Disconnected" shows the perils of rushing a book to publication to capitalize on a timely topic; in the rush to get it to market it's hardly a complete or nuanced story. "Betrayal" is certainly far better written than "Disconnected" and sticks to presenting facts in a more objective manner, especially when compared to the gossipy tabloid style of Madoff with the Money, which also covers Madoff. Kirtzman's background as a journalist shows through especially in his style of writing, making "Betrayal" a satisfying read like any good novel. Equally satisfying are the details of the case Kirtzman lays out against Madoff, a tale of intimidation wrapped in the veneer of respectability. While some would challenge Madoff, including the SEC, most were either intimidated or simply in awe of Madoff and the empire he had created. One of the more chilling tales is how young inexperienced SEC investigators were sent to look into Madoff's business only to be awestruck upon arriving at his offices. Clearly impressed they asked employees if there were any job openings. Such was the power of Madoff.

"Betrayal" gives you a true sense of how Bernie Madoff was able to create his empire based on trust and respectability, how it came to get out of control, and how he was able to keep investigators at bay. Compared to the other books out there on Madoff like the previously mentioned "Madoff with the Money" Too Good to Be True: The Rise and Fall of Bernie Madoff, and Madoff's Other Secret: Love, Money, Bernie, and Me, "Betrayal" is a well written book from someone who's done their homework. While "Betrayal" certainly helps shape our knowledge of Madoff and his Ponzi scheme it's unlikely to be the last word on the subject.

Andrew Kirtzman's book should be read WITH Erin Arvedlund's. It includes a more objective account of how she followed up Ocrant's hint in an obscure journal for her 2001 Barron's article.
It is far more complete about Harry Markopolos, though any reader can discount for the cynicism he expresses about Markopolos (really? is it unreasonable to fear for one's life when exposing that extensive an international fraud? why shouldn't he have thought of puts on Madoff related stocks when no one would listen to him? I know lots of over focussed quants and I've always thought them the salt of the earth). Arvedlund left the whole relationship between Markopolos, his boss Casey at Rampart, and the elegant cluelessness of the Villehuchet circle of phonies and pretentious nobility and royalty, just half or a quarter told, and here's a complete preliminary map. Kirtzman is entirely too sympathetic to Villehuchet. Vanity and "high" birth aren't an excuse for folly and fraud. Kirtzman has to pretend he thinks there was an innocence to Walter Noel, Carl Shapiro, Jaffe and others that I don't believe in either. That will be gone into as research and indictments continue. He certainly doesn't spare Ezra Merkin.
--The whole European side of this scandal is being hushed up and hidden as closely as Sonja Kohn's whereabouts, and neither Arvedlund nor Kirtzman gives more than a start on it, but K is much more insightful.
--Both Arvedlund and Kirtzman are full of names for prosecutors to consider as well as the already indicted.
--Kirtzman's book is far more suggestive about people. He, not Arvedlund, shows that probably the Madoff family were financial cheats on every scale they could make, and so were Ruth's family the Alperns, from the beginning in Bernie's boyhood. The only real weakness is that though he postulates that Bernie was already inventing money in the 60's, there's no data--YET--on Madoff Securities 1960-1985, and so two decades and more have to be skipped over. That will be remedied as time goes on.
The description of the ancient 1988 IBM AS 400 and the terminals from a 1970's spy film that were still cranking away on the 17th floor when Madoff went under is priceless. The book is very professionally written, if hastily proofread ("principals" where moral "principles" is meant, "discrete" (an old word for "completely separate" twice for "discreet", "entrusted Madoff with billions" i/0 "Madoff with billions").
If you take Kirtzman and Arvedlund together you have a splendid, comprehensive background map to help you follow coming revelations and indictments. Kirtzman is much more detailed and interesting about people, Arvedlund better about finance. Of course, since all the money was fake, the people side tends to take the story away.

I found reviews in TIME magazine (Summer 2009) of the top 3 books to buy about the Bernie Madoff scandal. As suggested in the article, this particular book is probably the very first one you should buy (my words). It is literally spellbinding, a real page-turner. I'm on my 3rd reading of it because each time, you'll pick up more details about how the entire scandal began and progressed over time. And in particular, the efforts of the ultimate "whistleblower", now finally making current news in Aug-Sept 2009.

If you are Jewish, and I'm not, it will give insight into the mindset of how "money" becomes status...in this particular case, that is. Great writing, and the author always leads you back to remind you of the particular names involved, lest you forget how the scheme started, and why, and then mushroomed into unthinkable evil. A fascinating book, quick to read, and very well-written. Truly an "A to Z" of the whole affair, from Bernie in elementary school to the day he was sentenced to prison. All of the "juicy details" of the story are expertly noted and legally referenced in the appendix.

A Library Copy. This is a fascinating case. There are so many questions. This book answers some of the questions, but leaves many questions unanswered so that I will be reading other Madoff books. I understand Ponzi schemes and how they can get started. However, the giant mystery here is the length of the fraud - how it could go on for so long. Hopefully, some of the other books will answer that question. A big question is how many persons knew or should have known about the Ponzi scheme. I think the number is bigger than most people think. All of these people, however large the number, did not stop the scheme as many were apparently paralyzed by greed.

The reviews from Time Magazine and Reuters were right, Kirtzman's book on Madoff was more engaging than the others out there. The book by reporter Erin Arvedlund, snoozeville. It's not about Madoff at all - it's about his enablers. Betrayal was chilling and a great read! Kirtzman tracks how Madoff descended into evil as early as the 60's... unbelievable.

An astoundingly well researched and deftly crafted look,not only at Madoff himself,but also inside the pool of victims ,both witless and not,in which the shark found his prey.Unlike some of the others I have read ,this is no mere compilation of news stories but incisive and succinct cameos of both victims and accomplices, implicit and explicit, and the greed and entitlement driving the delusion.While many of the victims were ,indeed,innocent dupes,the larger question of how sophisticated and experienced investors with investments in the millions if not billions could have been deceived is answered,albeit somewhat tangentially.Does anyone with knowledge of Wall Street really believe that mega investors with mega advisors in the investment banking,legal and accounting communities could really believe that anyone or system could beat the market all the time? Of course not,and one needs no knowledge of sophisticated financial models to so conclude. So how did they convince themselves? Kirtzman uses the phrase "forward trading", A.K.A. insider trading,i.e. Knowing full well no model ,however intricate or abtruse, could replicate the chaos of markets ,the only other explanation being that Bernie knows something or someone we don't.Wink wink!! But,let's keep that to ourselves,"Don't ask ,don't tell" and let the good times roll; after all, we are entitled and part of the in pool.. A great,compelling read,well written and on a par with the best of biz books such as "Barbarians at the Gates" etc

"Betrayal" is a pretty good biography of Bernard L. Madoff's life story, and how it led to his establishment and operation of the biggest private Ponzi Scheme of all time. It traces his upbringing in New York's middle-class Jewish society to his achievement of a lifestyle that most people can only dimly imagine. This piece takes a roughly chronological approach to the Madoff story, focusing on Madoff's life story in an attempt to explain why and how he did what he did. This is an engrossing work that interested persons will enjoy. I could not put it down.

Intentionally or unintentionally, in my opinion the real theme of this book is the incredible moneyed lifestyle that Madoff and his family enjoyed. Most of his investors thought they were enjoying it too, and many of them clearly believed that they were benefiting from insider trading that they believed Madoff was engaged in, and which they believed was the source of his apparent success as an investment manager. Many Madoff investors believed for decades that they were the beneficiaries of Madoff's wrongdoing, not the victims. Others were no doubt truly innocent, and believed what their friends and advisors told them; that Madoff was simply a phenomenal investor. These people walked around for decades believing, based upon the bogus account statements that Madoff sent them every month, that they were millionaires. In reality their accounts with Madoff had zero value, or nearly so.

Of course, it is now known that Madoff did not invest his clients' funds at all. He operated a straight, classic Ponzi Scheme, meaning that he simply paid redemptions to his clients when they asked for it with the money of other investors. The rest of the money went to Madoff and his family. The monthly statements that he sent his clients were completely fictional; the balances and growth that they showed were simply imaginary. Madoff and his family took the money and lived a life of almost incredible affluence, with several large mansions, frequent vacations in luxury spots, all of it. Madoff was not investing his clients' money or doing stock trades on their behalf. He was stealing.

This piece seems to buy the story that Madoff's family, particularly his two sons, did not know about the Ponzi Scheme. I do not buy that; not for a second. They had to know. Why Ruth Madoff was allowed to keep approximately $2.5 million is a complete mystery to me. It was other people's money--classic ill-gotten gains. The Madoff Receiver should have taken every dime she had. Let her work like everyone else.

Millions of words will be written about how it came that no one in authority ever exposed the Madoff scheme. His investment returns were absurdly implausible at a glance. (I am a civil attorney and have brought suit against numerous Ponzi Schemes. Generally you can spot one in about a minute by the uniform returns over about ten percent. I've never been wrong yet applying this rule.) Madoff's supposedly multi-billion dollar hedge fund was audited by a one-man CPA firm that was not even qualified to conduct audits. Indeed, for over 15 years the no-name CPA firm reported each year to the AICPA that it did not conduct audits. The assets that he supposedly managed did not exist, and the feeder funds that funneled money to Madoff never did any real due diligence despite claiming to. The uniform over-10% returns, and no-name CPA auditing firm should have been enough for the most blunted observer to see that Madoff was a fraud. Since many of Madoff's investors were exceptionally successful and bright people, one must assume that they knew something was not right, but thought themselves the beneficiaries. No one wanted to question how Madoff seemingly achieved the impossible: reliable profits under all market conditions at all times. Something that cannot be done.

Highly recommended. RJB.

I was given this book as a gift and despite my lack of particular interest in the subject, from the moment I finished the first page, I couldn't put it down! Andrew Kirtzman does a terrific job of telling an amazing story in a way that is engaging, understandable and thorough. I will send this book to friends and relatives and cannot recommend it highly enough.

Absolutely fascinating read! Reads like a novel, so that makes it very easy to read. We meet the people he betrayed, and then when we learn of his incredible betrayal, we feel their sorrow, anguish and pain. I cannot believe someone could be so greedy as to destroy his best friends' and his families' lives.

I find it almost impossible to believe that the SEC did nothing in all those years that Markopolos was trying to expose this immoral crook. Heads should roll! This book shows that power is hard to destroy. Underlings get caught up in the idea of a person's power and cannot believe someone of Madoff's stature could be so corrupt. Red flags were everywhere, as Kirtzman so clearly points out.

I have not read the other books, but chose this one because it was highly reviewed on NPR. Glad this is the one I chose. Very very well written and very well documented. I highly recommend this if you are looking for the basic story.