Turned in by his sons and creating ripples that will be felt for months as this house of cards tumbles, I couldn’t help thinking of “The Emporer’s New Clothes” which I reread last night. In the original story, scammers create invisible cloth from the finest silks and gold which the emporer gladly gives them. They squirrel away the riches and weave nothing, eventually convincing the emporer to take part in the royal parade completely naked. It is the voice of an innocent, a young child, crying out that the King had no clothes on, brought the people out of their stupor. How did these crooks convince the King that the invisible clothes were real? By getting him and all his advisors to believe that only stupid people would not be able to see the gorgeous robes. And what King or royal advisors admit they were idiots?
Madoff’s sons turned him in when they realized that he had perpetuated a major fraud. What tipped them off? They asked their dad how staff could possibly be able to receive bonuses when investors hadn’t been paid.