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The Bag Lady Papers, Part VII
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Louis Lanzano / AP Photo
Madoff victim Alexandra Penney, who lost her life savings in the ponzi scheme, on Bernie's dirty fantasies, living the frugal life, and some post-Ponzi schadenfreude—like seeing Ruthie's roots. Here’s the latest entry of her ongoing blog for The Daily Beast.
Bernie Madoff’s longtime secretary blabbed big time on Good Morning America yesterday morning. Innocent little Ruthie may have a few issues with Bernie’s nefarious massages and dirty fantasies, but she is still flouncing around with the many millions she withdrew just days before the MF confessed. She still has the colossal cojones to say all that dough is what she personally earned. Hah! Will somebody please tell me when the feds are gonna close in on her?
Much has happened since the loathsome caviar-coddled MF was caged and forced to wear an adorable orange prison costume.
Bag lady fears and visions haunt me at my usual 4 o’clock waking hour, when the world is a monotone gray and bleak, and I am stone-cold terrified of what will become of me. I compulsively add up every dollar I could make from selling everything I have. But occasionally a new fantasy surges through my beleaguered brain, and it helps to declaw the demons.
I am in a shadowy, but elegant, opium den straight out of Colette. I’m lying on a pale-blue silken chaise, taking long, languorous drags on a hookah, which numbs the angst and transports me far away from reality. Sadly, such a spot would be quite difficult to track down—and in any case, it wouldn’t comport with my new budget.
Last week, the bill for brakes on my dented white ’95 Mercedes wagon came to a whopping $671.41, which prompted me to write—again—to the trustee of the Madoff bankruptcy, Irving Picard, Esq., inquiring, as a personage in dire financial straits, when the Securities Investor Protection Corp. money would be distributed. Madoff investors are allegedly eligible for up to $500,000 in life-saving SIPC insurance. (Madoff claimed to be a member of SIPC, which means cash and securities held by the brokerage firm may be protected up to $500,000.) I’ve just finished the first draft of my book and am surviving thanks to the first installment of a book advance the publisher has paid me.
It’s the unforeseen bills like brakes for the wagon that can stop me in my tracks. I’m now quite adept at polishing my own nails, ironing my weekly supply of white shirts and Frette and Deborah Sharpe linens, and living a Most Frugal Life. The small amount of Madoff money I withdrew every quarter has, of course, disappeared. And the art market, which I depended on for the bulk of my income, has almost completely succumbed to rigor mortis, but luckily I’ve just sold a few photographs.
I was a big shopper in my day, but since the MF debacle the urge has, thank God, vanished. I confess to paying $16 for a perfect-fit Bill Blass pleated skirt that I spotted in a Palm Beach thrift shop. That’s been my one and only purchase since Dec. 11.
Florida, especially Palm Beach, was the prime feeding ground for the MF, and the stories I heard down there were appalling. I recently met one of West Palm Beach’s finest, a man more gorgeous than Denzel Washington and the possessor of a master’s degree in sociology. After a few minutes of chatting, the subject of distressed sales of homes across the bridge came up.
“That’s all part of this Madoff thing,” the gorgeous one said. “The guy is on everyone’s mind here. You wouldn’t believe the number of my friends, firemen and cops, whose pensions and retirement he robbed. I’m one of the lucky ones who wasn’t affected.”
Once again, I am stunned at how the lack of government oversight has damaged so many human beings throughout our society.
So many have troubles far worse than mine. Elderly people have been forced to sell their homes with no way to earn an income and no one to turn to. What are they going to do? Where’s the SIPC money? Their daily lives are hell. As of a few weeks ago, only 12 checks had been issued—and not one more has landed in needy hands. What the f—k is going on here?
The Right Dumps Carrie
Jacob Bernstein is a senior reporter at The Daily Beast. Previously, he was a features writer at WWD and W Magazine. He has also written for New York magazine, Paper, and The Huffington Post.
What's Joe's Problem?
Lloyd Grove is editor at large for The Daily Beast. He is also a frequent contributor to New York magazine and was a contributing editor for Condé Nast Portfolio. He wrote a gossip column for the New York Daily News from 2003 to 2006. Prior to that, he wrote the Reliable Source column for the Washington Post, where he spent 23 years covering politics, the media, and other subjects.
Geithner's Stock Plummeting
Jeff Madrick is a contributor to the New York Review of Books and a former economics columnist for the New York Times. He is editor of Challenge Magazine, visiting professor of humanities at Cooper Union, and senior fellow at the New School's Schwartz Center for Economic Policy Analysis. He is the author of Taking America, The End of Affluence (Random House) and The Case for Big Government.
The Bag Lady Papers, Part VIII
Alexandra Penney is an artist, best-selling author, former editor-in-chief of Self magazine, and originator, with Evelyn Lauder, of the Pink Ribbon for breast cancer awareness. She had a one-person show at Galerie in Berlin in April and her work was shown at Miami’s Art Basel. She lives in New York, has one treasured son in Los Angeles and more amazing friends than could ever be imagined.
Madoff Victim Alexandra Penney on His Guilty Plea
Alexandra Penney is an artist, best-selling author, former editor-in-chief of Self magazine, and originator, with Evelyn Lauder, of the Pink Ribbon for breast cancer awareness. She had a one-person show at Galerie in Berlin in April and her work was shown at Miami’s Art Basel. She lives in New York, has one treasured son in Los Angeles and more amazing friends than could ever be imagined.
The Bag Lady Returns
Alexandra Penney is an artist, best-selling author, former editor-in-chief of Self magazine, and originator, with Evelyn Lauder, of the Pink Ribbon for breast cancer awareness. She had a one-person show at Galerie in Berlin in April and her work was shown at Miami’s Art Basel. She lives in New York, has one treasured son in Los Angeles and more amazing friends than could ever be imagined.
Good column!
Ma'am, your outrage is tiresome and crass. I'd like to point out that, the fact that you were one of the "elite" Madoff investors in the first place indicates that your previous net worth was significantly higher than, say, the poor Enron employees who lost their entire life savings to others' greed and corruption. Given that fact, you should have known better than to give someone - anyone - every dime you ever had. With money to invest in the first place, you weren't savy enough to learn from other people's very high profile mistakes? You point to everyone's lack of due diligence but your own. Do you not feel even the least bit ashamed at your own foolishness? Please spare us your righteous indignation. It is insensitive and insulting to real victims. And bag ladies.
Wow. You are cruel. If you read all of Ms. Penney's installments, you'd know that she did double check Mr.Madoff's, let's say, 'reliability.' Regardless, the amount of money she had was just as hard-earned as Enron investors and employees (who you must obviously also blame for not doing their due diligence, or would you call it their foolishness?) The investors are not experts, which is why the criminal chose them in the first place. You're the one who should be ashamed for attacking a victim of a crime, instead of giving the perpetrator a pass. Please spare us YOUR righteous indignation.
You are so right. The bill for my Lexus 460L's oil change and tire rotation was $495 yesterday. Life is a bitch.
I feel for this woman, but her story is getting a wee repetitious.
I read AP's first posting a week or so after this first broke and she was still the floaty, genial, sort-of-rich woman who's been slapped in the face and is still breathless and in shock. This posting is rougher and cruder. The anger is manifest and she's getting vulgar. This woman is not going to live in genteel penury. She's going to be a ranting Valkyrie all the way to a geriatric facility paid for by Medicaid. This might not be a bad thing; the pride she took in her 42 white shirts was a waste of time. I'm looking forward to a posting a year from now when she's really raging and all of her graciousness has been trashed. It will be most amusing.
Hey frankregan... You come across as an abuser in your posting. Who the hell are you to criticize someone who is venting about having been cheated out of everything she's worked for. She has every right to express herself and relay her true feelings to the reader. If you are so puritanical perhaps you should have stopped reading after the first 'vulgarity.' The words Ms. Penney uses to describe the criminal are perfect, even necessary in order to relay her emotion. What would you call him if this was done to you? Or is it that you are so bothered by Ms. Penney's story because she's a woman who's made it in a man's world (and now you're reveling in her loss)? Someone needs to continue fighting for the victims' rights, both men and women, and she's courageous enough to stand up for them, as well as to numerous callous individuals like you. Oh... and don't get your hopes up too high about Ms. Penney ending up on Medicaid (what a cruel thing for you to say), because she will rebound from this stronger than ever.
As you sound so abusive, I guess it should be no surprise that you would attack a female victim of the crime instead of the criminal himself. In some peoples' minds, that is vulgar.
"So many have troubles far worse than mine."
Exactly. Now go away.
If you're serious about saving money, get a cheaper car, sweetheart. Insurance on that Mercedes has got to be a bitch. Don't you live in Manhattan anyway? I don't even own a car.
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Seriously - 10 year old BMW and Mercedes are great purchases. I have just bought one for about $4000 - and it should get another 100,000 miles. Insurance is great as well you only need 3rd party on $4000 car.
Or have I missed the point - and you were just wanting to be mean???
I can't believe she actually has to iron her own shirts...my God, what are we coming too!!!
puke...gag....barf....
Excuse me! Ladies go buy a Toyota Camry.Apparently you think people totally judge you on the make of your car.If they do then they are just as shallow as you are!This is nonsense.Obviously very few of any investors will receive any money back.You wanted to have your money with Madoff because of the perceived as a mamber of "the golden group".You lost.Go to work, buy a Toyota and be glad you have your health .I am in my 60's and have worked over 46 years and are now working 2 jobs, so don't cry on my shoulder.
You're asking Barney Frank to take a leadership role?
Wasn't Barney Frank one of the architects of the current economic mess?
Isn't that asking the fox to guard the hen house?
Why would you bring up partisan politics? You pick out one name in the blog to criticize, instead of giving the author credit for being pro-active. She's not only fighting for herself, she's trying to move the process along for everyone. Since you bring it up, foxes have guarded the various 'henhouses' (government departments) for the last eight years.
"Bag lady fears and visions haunt me at my usual 4 o'clock waking hour, when the world is a monotone gray and bleak, and I am stone-cold terrified of what will become of me. I compulsively add up every dollar I could make from selling everything I have."
Oh, please. Isn't this the silly bitch who recently signed a book contract to chronicle her pathetic plunge into the realm of the middle class? Oh, the pain. Apparently Mommy and Daddy never took the silver spoons out of their mouths long enough to tell their darling daughter that if it sounds too good to be true, it probably is.
Why don't you ask some of your rich friends who were smart enough to beware of Bernie to lend you a little money so you can keep the Mercedes on the street. You are amazingly tedious--enough, already!
If she'd made use of some artistic license and replaced "Mercedes" with "Toyota," I could relate.
Are you a Fendi Bag Lady,
a Coach Bag Lady,
or Loius Vuitton Bag Lady?
Or just an old Bitter Bag?
I question some of the comments in this article. Firemen and cops' pensions invested with Madoff? I find that really hard to believe.
Not the individual firemen or cops. The people running the pension funds invested with Madoff. So did people running scholarship funds and other charities. It's not just the upper classes who were affected by this.
I'm amazed that a person with the credential's below, and with all those amazing friends, could get herself involved in a "get rich to good to be true" scheme. Welcome to our world, get a cheaper car.
Alexandra Penney is an artist, bestselling author, former editor-in-chief of Self Magazine, and originator, with Evelyn Lauder, of the Pink Ribbon for breast cancer awareness. She had a one-person show at Galerie in Berlin in April and her work was shown at Miami's Art Basel. She lives in New York, has one treasured son in Los Angeles, and more amazing friends than could ever be imagined.
Yes this same old story is getting old. Once SPIC pays
off $500K to each of these bird brains complements of me
the taxpayer what will they bitch about then? $500K is way
more than most Americans have in liquid wealth. That plus
SS will tide you over til the next life.......so go get on with
your current life.....you seem to be doing much better than most.......pardon me I've run out of pity pills.
Yes, dear, it's all about you, isn't it? But, then, you only have to think about selling your things, you've kept your car, your shirts, your NY and FL properties (and Long Island too I'm sure), etc. Your only real suffering appears to be budgeting. Boo hoo. I would even go further than a Camry--check out the Scion, what a fabulous little car the xD is and tres au current. And try buying on the internet, especially after doing a comparison search. The savings are stupendous and you don't have to dress up for the sales people. Just a tip from a fellow middle-classer. You can do it if you get your mind out of the gutter and off of Bernie. One suspects you fantasize about him in more ways than revenge. Oh, and get a sense of humor, please, not to mention charm.
I wish someone would steal your laptop, so you would stop writing these whiny, pointless articles.
OMFG!!! - ROLF!! - Seems like you're writing for the wrong website Bag Lady - Hop on over to one of the Red sites - The Bankers, Stockbrokers and Top 1% Earners are sure to sympathize with you. They miss the Bush Days too... (I'm sure you're missing your tax cut too)
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As far as I can see these government agencies go through layers and layers of rules and bureaucracy before anything is done, I suspect that is one huge advantage that Madoff had, also I am sure that his rights to priority he claimed related to cash flow were respected which would have limited any real investigation on how Madoff was actually earning such large returns for investors. Of course his accountant is also up for alleged fraud relating to his lack of auditing work, which if it had been done would have validated years ago that the trades and resulting fraudulent earnings did not exist.
In contrast, Madoff's ponzie scheme, most likely operated as one layered affinity scheme, where decisions were made probably almost as quick as automatic, as long as there were new investors' money available to replace old investors' money the scheme was allowed to continue, until it either collapsed, was discovered, or admitted to. In this case it appeared it was admitted to, before it collapsed.
Well as we all know, government is real quick taking a person's money, heaven help you if you owe taxes or whatever, and so slow giving it back, unless you are a CEO of a bank, then it seems you might be entitled to a bonus.
Actually ArielAZ, this blog is about Ms. Penney.
I am glad to see this column, I was wondering what happened to you.
I have a question, were you able to apply and receive an IRS refund on the principle which you invested with MF. I guess you shouldn't have to print that information in a blog if you don't feel comfortable.
[Madoff Help News & Assistance » NEW: IRS Tax Refund Procedures!
On 03/17/09 the IRS unveiled new, more lenient guidelines for tax filers seeking a refund. The guidelines permit a theft loss deduction for the principal ...
www.madoff-help.com/?page_id=937%22 - 40k ]
I just wanted to let you know I learned alot from this blog, and passed that very difficult accounting theory class with a B.
Don't let the meanies bring you down to their level. Just hang on and something better is bound to happen soon. Just keep all your letters you receive and ten years from now, we might be able to laugh at all this, if the "Lord" willing.
I meant: I suspect that is one huge advantage that Madoff had, also I am sure that his rights to PROPRIETY he claimed related to cash flow were respected which would have limited any real investigation on how Madoff was actually earning such large returns for investors.
Really, if you had demonstrated even the least bit of common sense and had not been blinded by greed and snobbery, you would not have put all your eggs into one too-good-to-be-true basket.
And now you write these sniveling articles for what? Sympathy? Your 15 mins are over dear. Find a new subject because this meal ticket is old and stale.
Dear Alexandra: Thank you so much for these chronicles. Your original essays got me interested in the Madoff scandal and I have been following it closely ever since.
I find the entire spectacle fascinating beyond measure. I wonder what it must have been like to live Bernie Madoff's life, wallowing in unsurpassed luxury and universal acclaim for your brilliance, all the while knowing it was all a fraud that would inevitably be exposed. If it's any comfort, he must have lived on a knife's edge for decades and was undoubtedly consumed by fear and dread.
As you said, it helps to remember that there are others less fortunate than you are, although that is small comfort. Don't listen to those who sneer. Nobody measures their own standards against an orphan in Baghdad or someone in Darfur. If they did, nobody would ever have anything to complain about.
Again, thanks for these periodic installments on your life after Madoff. I appreciate the very personal and revealing insight.
I agree totally. If it hadn't been for this blog, I wouldn't have been able to experience how all the SEC rules, layer after layer, appear to help schemers like Madoff more than protect investors like Ms. Penney.
This blog really helped me gain a deeper understanding of accounting theory, without all the layers, found in the course too. Ms. Penney has opened up a window to us, now hopefully a door to a good outcome will be opened to her.
Of course people who are positive are not going to reply in the numbers the negatives are going to reply, so it gives a false impression how people really feel.
Thanks.
"Nobody measures their own standards against an orphan in Baghdad or someone in Darfur"
Actually--I do compare my standard of living to the poorest of the poor in other countries, and that's what keeps me happy every day of my precious and priviliged life. I have a roof over my head and food to eat, and if I lose everything else I can always escapt by reading good books at the free public library, so I can't complain. Really.
And neither can you.
Jessica - Yes, but you do complain. Everyone does.
What ever happed to stoicism in the face of adversity? Anyway, yesterday was the deadline for whining. George Patton
Actually, if the responders on the blog, really wanted to respond to real information, they would have commented about the taxes that were being payed over the years, on phantom earnings from Madoff's scheme.
Both Madoff's scheme and the IRS appeared to be benefiting from propriety rights which appeared to have successfully hidden how he was making cash flow through a cloak of secrecy, which of course would have earned the IRS payoffs too.
And the interest lost on the principal from the investment alone, could have probably paid for the work needed to be done on Ms. Penney's car.
I don't get this series of articles. Couldn't it have been covered in one article entitled Local Woman Fails to Diversify Investments
That is so funny!
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AP writes: "The small amount of Madoff money I withdrew every quarter has, of course, disappeared"
WHAT ARE WE TALKING ABOUT HERE, ALEXANDRA?
Your major source of income has been your art and you only withdrew "A SMALL AMOUNT" from Madoff?????
I don't know what to believe about you or your life anymore!
Begin telling the truth, or shut up. Maybe all this blather about Madoff and your bag lady fantasies is that you just want an excuse to check into an opium den. At this point, after 5 installments of this nonsense, I say "Go for it!"
Thank you.
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