Blackjack (1)
Quite some time had passed, so it was time to review my strategy again. My original plan was as follows.
1. Make contact with the Jewish community.
2. Claim it's a scam and somehow get them to pull their money out.
Step 1 was easy. By mid-1993, around the time Schindler's List hit theaters, Spielberg would have massive prestige in Jewish circles. Someone like me could easily worm my way in.
But... step 2 was actually pretty tricky. Just claiming it was a scam wouldn't cut it. They might listen if Spielberg said it, but I had no basis to convince the director himself without evidence. Of course, I did have evidence to use for persuasion. Let me recall those old thoughts again...
"Yeah, yeah, that's right. If it's not a bull market, just get them to invest in a bear market. The world doesn't only have bull markets, does it?"
"But Ponzi schemes usually don't disclose their portfolios properly, right? And Madoff might invest in Europe too."
"Exactly. That's why this part is the most crucial."
Originally, I planned to aggressively deploy Alpha Fund to pick a fight. Now that Alpha Fund had enough clout, I could even move the SEC. Set multiple traps, then openly accuse him of a Ponzi scheme to force him to admit 'Actually, I invested in Europe, not the US,' prove mathematically that it was impossible (someone did it in my past life), and boom—done. Sounds ridiculous for catching a scammer, but it's textbook.
The easiest way to expose a Ponzi isn't proving misuse of funds—it's proving there's no trace of funds going out at all, aside from payouts to customers. Trace the money flows one by one, and you'll see inflows from his fund but no outflows beyond client returns.
But... this plan predated me learning about Spielberg founding the Holocaust History Foundation. Now I had a better way.
"I heard you're managing the foundation's endowment this time? Ahaha, seeing Mr. Madoff's name made me wonder at the coincidence."
"Uh... and who might you be...?"
Madoff looked flustered as I suddenly acted chummy. For the record, we'd never met. But... he knew my name.
"Yoo Ha-yeon. I put about $30 million into your fund recently. When was that... Ah, right around the LA riots compensation, so about half a year ago."
Madoff pondered for a moment, then slammed the table with wide eyes.
"Ah! So you're the one behind that $30 million. I never imagined such a young lady—I apologize for not recognizing a valued client."
$30 million was a huge sum for the Madoff Fund, of course. Not that I noticed, since I'd been dropping $100 million routinely these days...
"Nah, it's fine. I didn't expect you to remember, but wow, great memory."
I flashed a grin, giving a sly eye smile and licking my lips just a bit.
Using the foundation instead of my original personal approach simplified everything. Unlike individuals, foundations have audit rights. A clean fund wouldn't object, but this one? Different story.
I'll shake you down clean.
I headed to the heart of the party, spotting ultra-wealthy-looking Jewish tycoons—the foundation's board members. A nonprofit? That doesn't mean letting money rot; that's negligence. Nonprofits manage assets and have boards too. Fun fact: one "director" was Ha Young-il. You might think Jews should fill those seats, but no—they put non-Jews there for impartiality. As someone said in a speech, the foundation wasn't just for Jews. Quota system for non-Jews, basically. His role was something like investment committee whatever—limited power, but I only needed audit rights, so whatever.
"Ah, the director from Alpha Fund? Quite the VIP."
"Haha, nothing much. I'm just here as an outsider, so relax."
I smoothly joined the conversation.
"Right, the endowment goes to Madoff Fund, yeah?"
"Uh... is it okay to entrust it to Madoff Fund?"
Another director muttered as if just remembering.
Right on cue, Ha Young-il chimed in with a troubled look.
"Normally, no. Mr. Madoff's a foundation donor, so conflict of interest. But it's common on Wall Street. Small stuff like this? Laughable, really."
He glanced at me. I winked back, signaling.
"Does anyone else know something? Like documents confirming Madoff Fund for the endowment?"
"...That'd be even worse."
"That's fine. Madoff's no small fry. Depends on his donation timing."
"Aha, got it. Whether the foundation invested first or he donated first matters. Latter looks like bribery..."
A cautious director probed.
"Still, we should be thorough. Don't want scandals tainting this meaningful work."
I smiled sweetly.
"Hmm... How about this? Manage up to $300 million normally, then audit if it exceeds that."
Clap. I suggested innocently, as if struck by genius.
"Hmm..."
"$300 million—reasonable. But isn't that too much?"
"Come on, between us? Inflation means it'll be pocket change by the 21st century. Set it at $10 million, and we'd audit every investment. Who'd take foundation money then?"
"...Sounds fair enough. It's under the foundation's name, not personal. Gotta consider optics."
My proposal passed the board unanimously. Even though I wasn't a director.
When assets under Madoff Fund hit $300 million, the board could form an audit team. That was the gist.
Easy.
I'd said a bear market was needed to force withdrawals and expose him? If I couldn't force the ebb, flood the tide instead. Drown the swimmer just shy of death.
For once, Madoff attended a charity event with a shred of goodwill for PR—and got thunderstruck. Over $300 million meant full scrutiny before investing.
Damn it, why now...!
Madoff scowled. Big inflows were great, but this was conditional—tied to audits. Normally, he'd brush it off. As someone from Alpha Fund said, Wall Street turns a blind eye unless you cross lines badly.
But foundation money? Different. Especially this one: Holocaust, the reverse scale of every Jew. Selected by that history foundation? Refusing was insane. And rejecting audits up to $300 million? Equally absurd. In front of all those tycoons?
It'll be fine. Madoff deep-breathed, calming himself. Only $200 million so far. No way it'd hit $300 million. Foundation rules spread investments, so it'd need even more to aggregate there.
...
And so 1993 arrived. Donations trickled into the foundation.
$230 million. $240 million. $250 million...
Thankfully, it stalled around there for Madoff Fund. Without that oblivious client, even less.
It's okay. Survive this year, hide all fund flows. Somehow...
Madoff laundered furiously, eyes bloodshot. To avoid tails, he moved JP Morgan funds to BBB (Berlin-Bearings Bank), which offered discreet services. He even pitched alternatives in person...
Diverting money—especially to those Alpha Fund bastards—twisted his guts, but necessary. Just this once—how many times had he sworn that? The precarious balance dragged months.
Until June 1993.
Half a year early, Schindler's List premiered. Honestly? No big deal. Donating all his cut? Spielberg was impressive, sure, but who watches black-and-white Holocaust biopics besides Jews like us?
Everyone thought so. Madoff too.
Then, the miracle.
Flip.
One morning's paper. Madoff's hands shook.
What... the hell?
Schindler's List's first-month global box office: about $200 million. Spielberg gladly donated his $30 million royalty share on top.
Madoff suddenly felt dizzy. Too... much money. Way too much.