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We've just said many believe that family was also involved that it doesn't sentencing mean made -- case is not over.
Here to talk about that is former prosecutor John Houston who prosecuted and lay and Jeffrey Skilling.
And the Enron case welcome sir thank you for joining us.
Thank you -- having well.
It doesn't end here definitely but what do you think is the next blockbuster bombshell that comes out of this case -- anything.
Well I think you see signs that the investigation is of course proceeding against.
The wife and family members.
The fact that you haven't seen anything so far is not surprising white collar cases take at least six months to a year to develop if there's no guilty plea.
It's been a relatively short amount of time.
I think time period that's past so far simply indicates that there's not a smoking gun document.
Out there that implicates.
Ruth wore -- the -- or brother.
But that does not indicate that there is no case in fact there's just been discussion about Irving Picard.
One of the findings he's made today which should frighten them.
Members is that he had the -- That the family members were in fact using the customer accounts is that they were their -- putting -- -- And -- ship captain on the payroll.
If that's true that's the kind of self dealing that could constitute the basis of a criminal charge.
Sir I've also seen reports.
By award winning journalists Lucinda Franks who is said that Ruth Madoff worked as as a bookkeeper.
For finally -- the Madoff operation that co mingled fronts in other words what you're talking about I think just now it's a commingling.
What would happen here what could happen here she is that they pursued this line of investigation.
Well I think ultimately if there's -- knowing commingling of funds plus some effort to sustain her own lifestyle.
By putting for instance.
People close to the family or staff members on.
Effectively the customers' accounts that's the sort of thing that would be the basis for mail or wire fraud charges.
If not attaching her to the actual Ponzi scheme itself and that's the real risk here for these family members it may be that they're not tied into the central.
Enormous history making Ponzi scheme.
But with federal investigators poring over every record.
If there's one moment in time where there is a movement of funds -- a self dealing moment.
The investigators and prosecutors gonna look to bring that case.
On the defense side they -- best hope here is to convince the prosecutors that it would be a mistake to go forward with the case.
On anything less than a smoking gun document because the US attorney's office shouldn't risk a high profile defeat on a case for -- -- Madoff name on the other side.
-- do you think there is a smoking gun document is there is there anything would we have seen it by now -- -- these things take that much more time.
Well they generally take that much more time I think if there were smoking gun document more likely than not we would have seen another complaint by now.
It could be that they have won and they're just at an abundance of caution proceeding slowly.
But with the pressures of the public and the attention right now my guess is they don't have a smoking gun document at least yet.
And -- carefully -- overall books and records and interviewing as many witnesses as possible so that if they bring charges they know that they'll stick has again losing a case against another Madoff would be far more disastrous than explaining why they didn't bring one.
John Houston thank you very much on as a former prosecutor.
And is now with laurel and at -- morale what LLP.
Boy you've had some great test successes in your career John thank you very much for.
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