uruknet.info
  اوروكنت.إنفو
     
    informazione dal medio oriente
    information from middle east
    المعلومات من الشرق الأوسط

[ home page] | [ tutte le notizie/all news ] | [ download banner] | [ ultimo aggiornamento/last update 01/01/1970 01:00 ] 55882


english italiano

  [ Subscribe our newsletter!   -   Iscriviti alla nostra newsletter! ]  



IRS ROLE IN MADOFF SCANDAL BEARS EXAMINATION


The Internal Revenue Service(IRS) has collected "untold billions" of tax dollars from investors swindled by fraudster Bernie Madoff’s Ponzi based on "earnings" that never existed. That's the view of Lawrence Velvel, dean of the Massachusetts School of Law at Andover, who says IRS "had no constitutional right to tax (Madoff investors) because the Sixteenth Amendment allows it only to tax 'income,’ not 'phantom income.’" Madoff, since convicted, told his investors their "profits" were the result of his trades in their behalf when, in fact, he never made the trades but paid them from monies swindled from new investors...

[55882]



Uruknet on Alexa


End Gaza Siege
End Gaza Siege

>

:: Segnala Uruknet agli amici. Clicka qui.
:: Invite your friends to Uruknet. Click here.




:: Segnalaci un articolo
:: Tell us of an article






IRS ROLE IN MADOFF SCANDAL BEARS EXAMINATION

By Sherwood Ross

July 11, 2009


The Internal Revenue Service(IRS) has collected "untold billions" of tax dollars from investors swindled by fraudster Bernie Madoff’s Ponzi based on "earnings" that never existed.

That's the view of Lawrence Velvel, dean of the Massachusetts School of Law at Andover, who says IRS "had no constitutional right to tax (Madoff investors) because the Sixteenth Amendment allows it only to tax 'income,’ not 'phantom income.’" Madoff, since convicted, told his investors their "profits" were the result of his trades in their behalf when, in fact, he never made the trades but paid them from monies swindled from new investors.

Velvel, who was himself a victim of Madoff’s Ponzi scheme, points out "The IRS will give you a refund of only a few years of those taxes---money which we now know you were cheated out of from the beginning." (Madoff is thought to have begun his scheme anywhere from 20 to 40 years ago.) And Velvel adds, "Nor will you get back more than a small fraction of your losses by virtue of the IRS’ new theft deduction rule…(which) will extensively benefit only the obscenely wealthy, who will receive scores of millions of tax deductions…"

The full role of IRS involvement in the Madoff scandal needs to be probed if only because IRS approved Madoff in June, 2004, as a nonbank custodian (of investors’ money) "even though he was in gross violation of its own regulations," Velvel noted in an essay titled "The Vast Amount We Don’t Know About The Madoff Matter," published July 8th on his blog VelvelOnNationalAffairs.com.

What’s more, Velvel writes, if IRS had inspected Madoff prior to approving him, it would have learned he stood in violation of IRS’s own regulations. This raises such questions as, "Was there criminal conduct on the part of the members of the IRS---the acceptance of bribes, for example?" Or, was there "’only’ simple gross negligence, incompetence and gross dereliction of duty by failing to inspect Madoff to be sure he complied with the regulations?"

Velvel scored the absence of vital information about the Madoff scandal is apparent at many levels. He deplored the lack of investigative reporting by the media, the refusal of IRS to divulge how it approved Madoff’s custodial role on grounds Madoff is a taxpayer and his records are confidential, and added that Judge Danny Chin "did us no favors by letting Madoff plead instead of forcing a trial at which much would inevitably be revealed."

Velvel, a former Justice Department lawyer, writes "I do not remember a major crime in which, at the times of plea and sentencing of the lead culprit, the details of what happened, of what was done, were as little known publicly as in Madoff." Accordingly, he asks:

Q: When and why the Ponzi scheme started?

Q: Which members of Madoff’s family, if any, were involved?

Q: What was known to investor Jeffry Picower, whose charitable foundation closed after the scandal broke, and who was returning 500% or more to his investors from Madoff?

Q: As Picower took out $5 billion more from Madoff than he put in, where did that money go?

Q: What did Madoff do to get the Securities & Exchange Commission to publicly state in 1992 there was nothing to indicate fraud in Madoff’s operations?

Q: Why wasn’t the government concerned when seven major Wall Street houses refused to do business with Madoff? (The houses were Morgan Stanley, Goldman Sachs, J.P. Morgan, CitiGroup, Merrill Lynch, Bear Stearns, and Credit Suisse.)

Q: If Madoff’s Ponzi scheme started because of some investment failure, what was the failure and when did it happen?

Velvel observes the Government has made it clear Madoff over the years moved $170 billion, supposedly all of which----apart from what Madoff kept for himself---was redeemed "but who is going to believe it until it is proven to be the case?"

"If you ask me, it is more likely that there was someone else involved in the deal who got a lot of the money---some think the American mafia, some think the Russian mafia, some think the Mossad and/or the CIA, some think others," Velvel writes. "Some think a lot of the money is still in banks overseas and one wonders about all the excess billions withdrawn by Picower---where, or to whom, did that money go. The only fact currently known is that we don’t know what happened to all the money. And we are not going to know until a lot more information becomes public."

Velvel is cofounder of the Massachusetts School of Law at Andover, a law school purposefully dedicated to providing a quality, affordable education to minorities, immigrants, and students from low-income households who otherwise would be unable to obtain a legal education. Velvel has been honored for his contributions to legal education by national magazines and holds a number of awards from publishing houses for his collections of essays on contemporary issues.

(Sherwood Ross is a media consultant to the Massachusetts School of law
at sherwoodr1@yahoo.com.)













:: Article nr. 55882 sent on 11-jul-2009 15:26 ECT

www.uruknet.info?p=55882



:: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website.

The section for the comments of our readers has been closed, because of many out-of-topics.
Now you can post your own comments into our Facebook page: www.facebook.com/uruknet





       
[ Printable version ] | [ Send it to a friend ]


[ Contatto/Contact ] | [ Home Page ] | [Tutte le notizie/All news ]







Uruknet on Twitter




:: RSS updated to 2.0

:: English
:: Italiano



:: Uruknet for your mobile phone:
www.uruknet.mobi


Uruknet on Facebook






:: Motore di ricerca / Search Engine


uruknet
the web



:: Immagini / Pictures


Initial
Middle




The newsletter archive




L'Impero si è fermato a Bahgdad, by Valeria Poletti


Modulo per ordini




subscribe

:: Newsletter

:: Comments


Haq Agency
Haq Agency - English

Haq Agency - Arabic


AMSI
AMSI - Association of Muslim Scholars in Iraq - English

AMSI - Association of Muslim Scholars in Iraq - Arabic




Font size
Carattere
1 2 3





:: All events








     

[ home page] | [ tutte le notizie/all news ] | [ download banner] | [ ultimo aggiornamento/last update 01/01/1970 01:00 ]




Uruknet receives daily many hacking attempts. To prevent this, we have 10 websites on 6 servers in different places. So, if the website is slow or it does not answer, you can recall one of the other web sites: www.uruknet.info www.uruknet.de www.uruknet.biz www.uruknet.org.uk www.uruknet.com www.uruknet.org - www.uruknet.it www.uruknet.eu www.uruknet.net www.uruknet.web.at.it




:: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more info go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
::  We always mention the author and link the original site and page of every article.
uruknet, uruklink, iraq, uruqlink, iraq, irak, irakeno, iraqui, uruk, uruqlink, saddam hussein, baghdad, mesopotamia, babilonia, uday, qusay, udai, qusai,hussein, feddayn, fedayn saddam, mujaheddin, mojahidin, tarek aziz, chalabi, iraqui, baath, ba'ht, Aljazira, aljazeera, Iraq, Saddam Hussein, Palestina, Sharon, Israele, Nasser, ahram, hayat, sharq awsat, iraqwar,irakwar All pictures

 

I nostri partner - Our Partners:


TEV S.r.l.

TEV S.r.l.: hosting

www.tev.it

Progetto Niz

niz: news management

www.niz.it

Digitbrand

digitbrand: ".it" domains

www.digitbrand.com

Worlwide Mirror Web-Sites:
www.uruknet.info (Main)
www.uruknet.com
www.uruknet.net
www.uruknet.org
www.uruknet.us (USA)
www.uruknet.su (Soviet Union)
www.uruknet.ru (Russia)
www.uruknet.it (Association)
www.uruknet.web.at.it
www.uruknet.biz
www.uruknet.mobi (For Mobile Phones)
www.uruknet.org.uk (UK)
www.uruknet.de (Germany)
www.uruknet.ir (Iran)
www.uruknet.eu (Europe)
wap.uruknet.info (For Mobile Phones)
rss.uruknet.info (For Rss Feeds)
www.uruknet.tel

Vat Number: IT-97475012153