Eyes Wide Shut

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We have spent a lot of time pondering the Made-off case, as you well know. And several things are very suspicious. Key among them, how much did Ruth Madoff know and when did she know it? How many toner cartridges does it take to produce 20 million documents? Who stores documents in a warehouse in Queens? What exactly was this secretive seventeenth floor? Given that Bernie and Ruth were reportedly a very tight couple, how could she be in the dark, really?

But investigators have discovered, according to a person close to the case, that the funds from the advisory business were in fact comingled with Madoff's personal funds and with a market-making fund in which he, as a broker-dealer, executed orders for customers. It was Ruth Madoff who oversaw the books on all three of these accounts, and it was the comingling of money from them--contrary to regulations that require such accounts to be kept separate--that enabled the elaborate shell game. It also meant that some investors' money was not invested for their own benefit but went into Madoff's personal assets.

Behind every great Ponzi scheme, there is a scheming wife?
There are, of course, a great number of mysteries remaining still. Consider:

The Financial Industry Regulatory Authority has reported that there is no record of Mr. Madoff's investment-advisory firm placing any trades. "What did all those people do on the secretive 17th floor if they weren't executing trades?"

I mean, do we have to spell it out for you?
Partners in Crime? [The Daily Beast]

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