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Prison Prep: Shana Madoff Learning The (Soap On A) Ropes

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Peter's wondering how he'll survive on only $10,000 a month, Ruth's jewelry shopping in Palm Beach and Andy and Mark Madoff are most likely off on a 6 month fishing trip funded by gal pal Bob Rubin, but at least one member of Ponzi Nation is facing facts. Shana Madoff, niece of Bernie and wife of former SEC employee Eric Swanson, has apparently started getting worried about the matter of having "signed a lot of documents" in her role as a Madoff Securities compliance officer, which may result in some orange jump suit time. Resourceful girl she is, Shanala's enlisted the services of the highly recommended Larry Levine, founder of Wall Street Prison Consultants, which, for $850, gives white collar criminals a "wake-up call" on how to act behind bars and secure early releases. Shana is said to have enrolled in Fed101, a course that covers, among other things:

(For our future WCC readers looking for something a little more in-depth, consider Incarceration Optimization, a 100-hour program that'll set you back 20-large but'll probably be money well spent).


Prison Puts A Damper On Once Friendly Working Relationship

The Times reports that the friction between Raj Rajaratnam and Rajat Gupta around the Federal Medical Center Devens is more than a little palpable.

Former Madoff Employee Pleads Guilty To *A* Madoff Securities Scam Just Not *The* Madoff Securities Scam

You know what has got to suck? When you decide to start charging stuff that doesn't fall under "business expenses" to your corporate card and engage in a few other amateur hours scams that probably wouldn't have been found out (or, if discovered, not taken to the authorities because your boss had high tolerance for fraud) but then they are because the CEO of your firm had to go and engage in the largest Ponzi scheme on record, which shone an uncomfortable light on company personnel and all of the cheese, popcorn, and salsa of the month clubs you joined (for example).  Craig Kugel knows what we're talking about. The son of a longtime trader for convicted Ponzi scheme operator Bernard Madoff pleaded guilty to conspiracy and other criminal charges Tuesday, but denied any involvement in the decades-long fraud. Craig Kugel, the son of David L. Kugel, a former supervisory trader in Madoff's proprietary-trading operation, admitted to filing false forms that claimed people were on the Madoff payroll when they didn't actually work for the firm and to not declaring as income personal expenses charged to the firm's corporate credit card. Those individuals were paid salary and benefits, but weren't actual employees, he said. "I am sorry for my lapses in judgment in committing these federal crimes, but I want to make clear I had nothing to do with the Madoff Ponzi scheme and I was never involved in the Madoff trading operation," Craig Kugel said at a hearing before U.S. District Judge Laura Taylor Swain in Manhattan. Ex-Madoff Employee Pleads Guilty to Conspiracy [WSJ]