Madoff tops executive jail-time terms

Bernie Madoff stands once again, at the top of a pyramid. Image by AFP/Getty Images via Daylife

With Bernie Madoff just sentenced to 150 years in prison for his massive Ponzi scheme, he easily wins the title of longest jail term ever given to an executive for financial-related fraud. Surpisingly, the man after whom the Ponzi scheme was named was given only a 3-year federal sentence after a plea bargain, only to be nabbed by Massachusetts for another 7.5 years under state charges after he was released. He then continued to be involved in schemes after deportation to Italy.Other high profile felons have managed to do good after a stint in the pokey: Junk bond king Michael Milken, for instance, has funded a number of efforts into cancer research. At 150 years in prison, Madoff won’t have the opportunity to have either a colorful or constructive post-jail life.

Here are the updated standings in the selective league of notorious financial felons:

• Sentence  Name                        Title,  Company                 Crime

1. 150 yrs    Bernard Madoff Chmn, Madoff Securities      $150 billion Ponzi scheme perpetrated over decades
2. 25 years  Bernie Ebbers Chmn, Worldcom                  Fraud, in Worldcom’s false financial reporting.
3. 24.3 yrs   Jeff Skilling President, Enron                    Securities fraud, insider trading related to Enron collapse.
4. 15 years   John Rigas founder, Adelphia                  Fraud, with son Timothy, embezzled millions.
5. 10.5 yrs   Charles Ponzi founder, Securities Ex.          Turned stamp arbitrage play into massive pyramid scheme.
6. 10 years   Tone Grant President, Refco                       Stemmed from hiding $430mln in bad company debts.
7. 8.3 years Dennis Kozlowski CEO, Tyco                                  Embezzlement. Maximum term of 25 years possible.
8. 4.5 years  Charles Keating CEO, Lincoln S&L                   Wire, bankruptcy fraud stemming from ’80s S&L losses.
9. 3.5 years     Ivan Boesky founder CX                                      Partners Insider trading, with Milken.
10. 2 years      Michael Milken trader, Drexel Burnham            Felony securities violations.

• Sources for the information above include the Wisconsin Law Journal, Dept of Justice press releases and  Cnn/Money.com.

UPDATE at 2:45pm:

Fellow True/Slant contributor Nancy Miller pointed out to me a couple more infamous and lengthy jail terms I overlooked.

Shalom Weiss garnered an extraordinary 845 years for money laundering that led to the collapse of National Heritage Life Insurance in 2000. His crime appeared far less voluminous –  money-wise – than Madoff’s, with about $27 million involved. The length of the sentence was likely informed by the fact Weiss had evaded authorities by fleeing to Austria at the time. He was extradited back to the U.S.

Norman Schmidt was a lot like Madoff, promising investors guaranteed returns of up to 400% per month. He used the funds to buy 8 Nascar race cars, among other items. He was sent up the river last year for 330 years.