weinstein's eric came in as an intern. >> he worked for madoff? >> he worked for madoff. the money he made he investeded with madoff. the. >> he didn't tell anybody anything? you've done these cases before, okay, have you not? you've covered infidelity cases. how much does the woman get to know? how much does the spouse get to know? you have this illicit affair for 20 years. this is not a one-night stand. >> the spouse or the squeeze? we have the beast and the squeeze. 20 years. does anybody buy that ruth with 40 years didn't get it? cut it in half. 20 years. there's no way that she couldn't have known. it's impossible she couldn't. but the beauty -- one second. the beauty of it is this, dean will not shut up. he's not shutting up anytime soon. he's now in the metropolitan correctional center. >> do we think he had anything to do with sheryl weinstein? let me ask you this, do we think she knew the people in the madoff operation? she was an important investor with her husband. do we think she knew the office, who was in the office, a small thing like that? >> absolutely. >

. >>> madoff's man. bernard madoff's man admits he knew all the time that he and his boss were bilking investors out of billions. >>> good to go. a look at all the electric cars being developed. how does 230 miles a gallon sound? >>> and, a $65 million jewel heist, carried out in broad >>> and, a $65 million jewel heist, carried out in broad daylight. captions paid for by abc, inc. >>> good evening. the rhetoric has been getting louder, more heated, more inflammatory by the day on the issue of health care reform. there has been talk of rationed care, socialized medicine, even death panels. well, today, the president pushed back, hitting the road, receiving reform and promising to separate fear from fact. he used a town hall meeting in new hampshire to press his case, and to charge his critics with trying to scare the public. jake tapper is at the white house tonight. jake? >> reporter: good evening, charlie. well, more than 200 million americans have private health insurance, and president obama this wee

bernard madoff's cfo frank dipascali has pleaded guilty to criminal charges. now, he started with this company, bernard madoff's firm at the age of 19. he is now 52 years old. lives in incomes and in his statements leading up to that plea, which by the way, the judge has accepted, frank dipascali mentioned that the fraud taking place at madoff's company was known by not only himself but by others that he was aware that there were fraudulent things taking place as early as the late '80s and the early '90s. he said that bernard madoff specifically asked him to keep the sec off his whack to keep him off their trail and in this day in court, he talks about all of the fraud that had been taking place and also talked about the fact as i mentioned that others were involved. he has yet to name those others but now has the time with u.s. governmentment to talk about who else was involved. that will be the next step as he's interviewed and asked exactly what took place at bernard madoff's firm for all of those years. >> let's put an exclamation point on this for folks j

"he helped bernie madoff and other people carry out a fraud" is the first possible proof madoff didn'tl off his massive scheme alone. from manipulating paper records, the phony trading soft mayor meant to trick visitors at madoff's office. in laying out the inner works of a $50 billion ponzi scheme, dipascali will have to name names. wall street is already fearing the next big fraud. where is the next rip-off lurking? warren buffett once famously said -- now that the tide is back on the rise how will we spot the next madoff? jake's no stranger to the evils of wall street. a securities lawyer, he has represented victims of eight ponzi schemes in just the last five years. business has been good. >> it is a bull market for ponzi schemes, unfortunately. >> absolutely. tell me this. if there were other people helping bernie madoff, should others with the last name of madoff be worried? >> if you have a last name of madoff, you're in a lot of trouble. this frank, the number two guy, knows where the bodies are buried. he's going to be singing like a canary. mark and andrew, the sons that ran

bernard madoff's number two admits in court he knew all along investors were losing billions. >>> charged up h new makes electric cars about to hit the market. ismaker's automotive love affair about to change? >>> good morning, thanks for getting up with us on this wednesday. democratic lawmakers face another day of jeers and taunts at het care town hauls. >> one hosted his over the phone rather than face a rowdy crowd, others are hiring extra skurlt. >> so far crowds showing up to see president obama have been calm but haes two more major event this is week. emily smid is tracking the story from washington. >> good morning and more than a thousand pages in health care plan but town hall meeting had a whole new chapter. the debate is loud, passions are clear. >> you don't trust me? >> a it wit town hall meetings, leading to hurt feelings. >> i don't understand this rudeness. i don't get it. i honestly don't get hist do you think you're persuading people when you shout out like that? >> democrats trying to explain the push for health care overhaul are getting push back from pennsylvania --

bernie madoff was not an idiot.the guy was running a ponzi scheme and not doing it for the benefit of the people he was paying. they only found $300 million in the account. he had to store money away. >> which of you interviewed the drivers? >> andrew did. >> that's right. >> one of the drivers told this incredible story in which every morning he would go to the 17th floor and give them a check for a friend of bernie madoff's and the checks would be for several million dollars. sometimes $10 million. his name was norm leavey and he was a mentor to bernie madoff. a middle age jamaican driver would walk these checks over to the jpmorgan chase building where he had an office and put it in his account. there is no logical or reasonable explanation why bernie madoff would give someone tens of millions of dollars a day unless perhaps he was parking money. >> what was interesting here is that these guys, these feeder fund guys who we are talking about today were actually dictating to bernie how much of a return they were g

if there were other people helping bernie madoff, should others with the last name of madoff be worried if you have a last name of madoff, you're in a lot of trouble. this frank, the number two guy, knows where the bodies are buried. he's going to be singing like a canary. mark and andrew, the sons that ran the trading desk, well bernie said that he was not charging management fees just brokerage commissions. where are the trades. where are the commissions? those guys are in a lot of trouble. peter, his brother, the chief compliance officer and general counsel was make reports to the s.e.c. i think they're going to be able to prove that he knew those were false reports. i think he's going down. ruth madoff, the bookkeeper, close to bernie, there may not be e-mail traffic to connect her but there are going to be a lot of witnesses coming out saying we believe ruth knew what was going on. i wouldn't want to have the last name of madoff. >> where is the next ponzi scheme? is it going to be a ponzi scheme? where is it? >> i'm seeing them pop up all over the country. agape in long island, co

time for the "last call" today on bernie madoff. u.s. marshals announce seeking proposals from real estate brokers to sell madoff's new york and palm beach properties. what do we think of that? >> i'm in the market for a new apartment right now. that looks pretty nice. a little out of my budget, but looks nice. i want to know, when mary thompson was doing the interviews with these victims and the woman working on the book at that time, i don't think we knew that. that is pretty interesting, she was sitting there having this conversation, and here she was working on a book saying she had an affair with him. >> you know, trish -- >> i don't know if we all got that undercurrent. >> trish, she is having an affair with him and later on calls him a beast. but it must have been a beastly affair, and i want to understand about pillow talk. she is running the money for hadassa, he is getting the returns that are phony. do we not think pillow talk -- >> i guess it would depend on how close they were, right? >> well, i don't know. pillows only -- >

greta: in the book you talk about an affair with bernard madoff. that did not start off as professional. >> no, it started off as professional and then it became physical in nature after five years. greta: were you infatuated with him were interested in him? >> well, he was with me. he made it very clear that he would like to take it further. i made it clear that at that point that there was not really -- i was not really into that. i was not interested in having at a fair. gret-- an affair. greta: why was this okay? you had worked with him for five years and then you had an affair. you certainly did it, i understand you have remorse but at the time. >> at the time, i was having problems with my husband penn to my life can check -- i was having problems with my husband. my life was changing. greta: what would you say about bernie madoff in 1995? >> i would say he was a good friend. if i had a problem, i would feel comfortable calling him. greta: you have lost personal money. >> i lost money. greta: you were wiped out > >> yes. greta: what do you th

the prison bureau declining comment on madoff's health and is looking for madoff's permission to disclose his medical information. we are going to have more on the fallout on that in the next hour and then check out cnbc.com, madoff and the cancer question, one of the hot stories at this hour. >> i think so. >> raises so many questions, too, about why if you were in his position, why you would not say that in advance of your sentencing? >> because it wouldn't have made that much of a difference. it still -- look, the report and the original report, it was what pancreatic cancer? if you were going to die very, very quickly from that getting ten years versus 150 years. probably pointless. >> we will talk about that still to come. >>> it may explain a lot, actually, it may explain his decisions to to resist helping the government in any way, shape or form. absolutely. >>> we come back after a short break is goldman sachs giving its best tips to only -- only its biggest clients and stiffing all the rest of them? we are going to tell you what is going on behind the doors at 85 broad. >>> also

madoff. he may have knowledge from that. we don't know the exact details, a broad statement but suggests he might have idea as to where there are additional funds. >> secondly, the whole issue of family members, mary, is it your expectation or expectation of legal people we will finally learn the whole story there? >> reporter: well, of course, that's the hope. i think when you were suggesting family members, what does this mean for bernie madoff's brother, peter, his wife, ruth, there was no mention of their names from the statement today, again, who worked for the company 33 years and last served as cfo. he only mentioned others and did not name any. that's something we have to wait and see. >> how does this play out? he's cuffed and gone to the poky, what's the next step in your view? . >> reporter: interesting the judge said he rejected the bail without prejudice. that means if the prosecution and defense came up with another bail agreement the judge would find more fitting, possibly mr. dipascali could be removed and al

madoff's other secret, love, money, bernie and me. spoke with her and eight other victims on the day he pled guilty. here is how she met him. >> i had the privilege of knowing bernie, financial head of a charitable organization, and there was a donor in france that wanted to make a considerable contribution to the organization. the stipulation was that the funds remain with mr. madoff. >> at the time, winesteen was president of a women's charity for american jewish ties to israel. through 1998, a spokesman said it invested with a total of 80 million. the account had reportedly grown to over $100 million. the president, nancy fullcheck rights she was shocked to hear the report of her personalel alled missions. we knew nothing about it until today. winesteen left in 1 1997. she also had personal investments with madoff, and in march she spoke of the scam's emotional toll. >> we are in our own jails right now, because of his actions. so that he is in jail on one hand is, yes, he belongs there. but we need to try to help ourselves get out

madoff. at the end of his statement he said i don't know how an 18-year-old kid who is looking for a job out of college came to this. mr. dipascali joined mr. madoff's firm back in the 1970s, worked by his side for 33 years and is cooperating now with the government to help them unravel that will $65 billion ponzi scheme. again, the question that remains to be answered right now is whether or not the judge will sign off on the bail agreement that was agreed to by the prosecution and the defense. again, the judge saying he believes mr. dipascali despite his obvious show of remorse in the courtroom today remains a flight risk. melissa, back to you. >> thank you very much. er that thompson. no remand apparently. is this a surprise at all that madoff had an accomplice? >> oh. oh. >> more of a surprise if he didn't have one. >> that's right. >> guys, sorry to interrupt. you're talking about outrageous. that regis philbin is going to be here to play who wants to be a fast millionaire. >> regis is t

we need -- it's a madoff scheme, not a ponzi scheme. >> you think ruth madoff might be vulnerable here>> i think she's kind of a lady mcbeth figure. i have a crazy figure that either she was the mastermind of it. her father was one of the original fund-raisers for bernie. i talk about that a little in the book. and she's not -- she's not a dumb lady. she's a very smart, smart cookie. >> right. >> she got a college degree in an era when it wasn't common for women to go to college and she was with bernie every step of the way. >> this article was written -- your initial article. what would happen if you had had a million readers of that initial article? the initial article is, what, your investigation was in 2001? >> yes. >> you wrote an article, did it have any impact at all then? >> i certainly hope so. i wish it had more of an impact, i really do. i regret i didn't do a follow-up. but i felt like i said everything there was to say. >> what tipped you off? >> i had a very good source, a guy by the name of ken nakiyama who was a derivative expert at deutsche bank. we were talking about

. >> paul: bernard madoff's right hand man is cooperating with prosecutors and frank says madoff wasn't alone in committing his crime. the former cfo at madoff's firm pleaded guilty to 10 criminal counts today including conspiracy, securities fraud and falsifying records. he was denied bail and ordered to jail. he says that others helped madoff carry out the $65 billion ponzi scheme. he didn't say who the others are. he faces up to 125 years in prison. madoff is serving 150-year sentence for mastermining one of the largest investment swindles ever. >> susie: c.i.t. group waved a red flag today, saying there's doubt about whether it can stay in business. the problems: credit-market stress, operating losses, and credit-rating downgrades. the century-old commercial lender delayed filing its quarterly report with the s.e.c. today, saying it needs more time to work out a restructuring plan with bondholders. if that plan falls through and it can't get other financing, c.i.t. could be forced into bankruptcy. paul. >> paul: susie, cit shares were among the big board's big movers. we'll see them

madoff. at the end of his statement, he said "i don't know how an 18-year-old kid who was looking for a job out of college came to this." he of course joined mr. madoff's firm back in the 1970s, worked by his side for 30 years and is cooperating with the government to help them unravel that $65 billion ponzi scheme. the question that remains to be answered is whether or not the judge will sign off on the bail agreement that was agreed to by the prosecution and the defense. again, the judge saying that he believes, despite his obvious show of remorse in the courtroom today, remains a flight risk. melissa, back to you. >> thank you very much. is this a surprise at all that madoff had an accomplice to this extent? guys, sorry to interrupt. regis philbin is going to be here. >> think about that. regis is the man. i tell you what, i think the market is headed lower. today, pete and i were talking about this before, the last couple of weeks the market would sell off and have these late in the day l

we knew madoff had this jpmorgan account.you can be assured prosecutors are looking into how much money went in to and out of the account at the time. it was interesting to see it was the one account the redemptions were made out of, bonuses were paid out of as well. they used it as a little bit of a slush fund. >>> let's head over to the nasdaq marketsite where melissa lee is standing by. >> we'll talk about the rally we saw post fed meeting. where are opportunities right now? you might want to think market cap. >>> also you might be getting a little bit giddy after this rally. we will present the case for perhaps a recession on the horizon. yes, better to know now and get ready than know too much. much more ahead on "fast money" at the top of the hour. >>> we are back if just a minute.

greta: in the book you talk about an affair with bernard madoff. that did not start off as professional. >> no, it started off as professional and then it became physical in nature after five years. greta: were you infatuated with him were interested in him? >> well, he was with me. he made it very clear that he would like to take it further. i made it clear that at that point that there was not really -- i was not really into that. i was not interested in having at a fair. gret-- an affair. greta: why was this okay? you had worked with him for five years and then you had an affair. you certainly did it, i understand you have remorse but at the time. >> at the time, i was having problems with my husband penn to my life can check -- i was having problems with my husband. my life was changing. greta: what would you say about bernie madoff in 1995? >> i would say he was a good friend. if i had a problem, i would feel comfortable calling him. greta: you have lost personal money. >> i lost money. greta: you were wiped out > >> yes. greta: what do you th

conrad murray could face federal charges. >>> does bernie madoff really have pancreatic cancer? "the new york post" reports a fellow prison inmate says madoff talk abouts cancer all the time and is not doing well. the paper also says there are rumors that he has pancreatic cancer. the federal bureau of prisons released a statement saying madoff has not been diagnosed with the disease and is not terminally ill. madoff is serving 150 years for bilking investors out of billions of dollars. >>> a missouri woman is in trouble for pretending to have terminal cancer. police sayammy young got more than $10,000 in donations from well meaning colleagues at a missouri prosecutor's office and even her friends all because they thought she was sick. now their generosity has turned to anger. >> angry. the ones that i talked to who helped organize those fund- raisers, helped plan those fund- raisers and gave money to those fund-raisers are the ones that know about this or that have heard about this so far, yes, very angry. their trust has beebreached. >> police say she never visited any of the

this is "the scam of the century: bernie madoff's crime and punishment." >> bernardo madoff will diecourt, bernie madoff apologized to his victims and acknowledged his words would provide them little comfort. over the next hour, we will unravel madoff's stunning web of deceit and take you inside a heart of darkness. madoff, a man capable of stealing from his friends, his community, his charities, and so many more. it's a close-up look at the $65 billion fraud that will forever be known as the scam of the century.

greta: in the book you talk about an affair with bernard madoff.as professional. >> no, it started off as professional and then it became physical in nature after five years. greta: were you infatuated with him were interested in him? >> well, he was with me. he made it very clear that he would like to take it further. i made it clear that at that point that there was not really -- i was not really into that. i was not interested in having at a fair. gret-- an affair. greta: why was this okay? you had worked with him for five years and then you had an affair. you certainly did it, i understand you have remorse but at the time. >> at the time, i was having problems with my husband penn to my life can check -- i was having problems with my husband. my life was changing. greta: what would you say about bernie madoff in 1995? >> i would say he was a good friend. if i had a problem, i would feel comfortable calling him. greta: you have lost personal money. >> i lost money. greta: you were wiped out > >> yes. greta: what do you think of him? >> i think t

greta: in the book you talk about an affair with bernard madoff. off as professional and then it became physical in nature after five years. greta: were you infatuated with him were interested in him? >> well, he was with me. he made it very clear that he would like to take it further. i made it clear that at that point that there was not really -- i was not really into that. i was not interested in having at a fair. greta-- an affair. greta: why was this okay? you had worked with him for five years and then you had an affair. you certainly did it, i understand you have remorse but at the time. >> at the time, i was having problems with my husband penn to my life can check -- i was having problems with my husband. my life was changing. greta: what would you say about bernie madoff in 1995? >> i would say he was a good friend. if i had a problem, i would feel comfortable calling him. greta: you have lost personal money. >> i lost money. greta: you were wiped out > >> yes. greta: what do you think of him? >> i think that he should not be among normal

frank dipascali word for madoff since 1975. yesterday he admitted knowing everything about madoff's scheme which cost thousands of people their life savings. it came as no surprise to one former associate. >> i believe that frank new as much as bernie did and then as time went on, i in theed that they spent more and more time together in the officefi. >> after pleading guilty to charges including fraud and money laundering, depos cali was ordered to jail. that surprised both prosecutors and defense attorneys. the judge said dipascali was too much of a flight risk. >> a new study finds aspirin could help prolong life for colon cancer patients. the research shows taking aspirin reduced the risk of death by nearly 30%. if proven, it could be a real breakthrough, especially considering aspirin is so inexpensive. >> now here's a look at your weather. showers and thunderstorms for much of the east coast and gulf coast. severe at times from alabama to virginia. widely scattered thunderstorms in parts of the planes and rockies. >> wet

now, another change for ruth madoff. under a new order, signed by a manhattan bankruptcy judge, madoff must submit a monthly report of expenses that individually exceed $100 to a trustee. >> ruth madoff's legal position is, i didn't know. and essentially the trustee is now saying, we don't buy it. so she's now in a position where she's going to have to prove that any money that she has wasn't tainted. that's a tough spot to be in. >> reporter: in a statement to nbc news, ruth madoff's attorney said, quote, this agreement is a reasonable accommodation in the context of this lawsuit. but that lawsuit, filed by the same trustee, irving pickard, also calls for ruth madoff to return nearly $45 million allegedly transferred to her from her husband's firm. money he claims ruth madoff used to live a life of splendor, a claim her lawyer calls perplexing and totally unjustified. and under the new court order, ruth madoff is allowed to spend her money on reasonable living expenses, including legal fees. but the order does allow the

madoff pursued her from the moment they met. >> it was an adult affair. i think it was about as adult as an affair can be. unfortunately, it was with the biggest crook the world has ever seen. >> an attorney for madoff's wife, ruth madoff said his client did not know about the alleged affair. >>> we are learning more about the final hours of michael jackson's life. especially the period of time between when police found the singer not breathing to the moment someone called 911. a police affidavit said dr. conradt murray found the singer not breathing at 11:00 a.m. the day the singer died. he told investigators he had given him drugs to help him sleep. however the 911 call wasn't made until an hour later. and now, cell phone records show the doctor made 47 minutes worth of other phone calls. >> i think any reasonable person would expect dr. murray to administer cpr and call 911 immediately. this is reckless conduct. that's exactly what law enforcement needs for a manslaughter charge. >> so far, dr. murray hasn't been charged, but his las vegas office has b

. >>> madoff's mistress. a 21-year affair. and she's telling all in a live interview this morning. >>> and defined a generation. "thirtysomething." the cast here, their first "thirtysomething." the cast here, their first reunion, 20 years later. captions paid for by abc, inc. >>> we say good morning to you. welcome, again. i'm diane sawyer. robin is off on this tuesday, august 25th. after all of the speculation, after all of the talk, we have real information on michael jackson's death. >> one doctor says he took enough sedatives to knock down on elephant. the question, now, of course, will it rise to the level o homicide? abc's mike von fremd is at the los angeles county coroner's office. he has the latest this morning. good morning, mike. >> reporter: good morning, chris. he's documents show that dr. conrad murray admitted that he had been treating michael jackson's insomnia for six weeks. giving him the powerful anesthetic, propofol, where he claims he was attempting to wean jackson off the dangerous drug. police documents

they shouldn't release madoff because they shouldn't have released the bomber. he is released on compassionate grounds. the thugs showed the people they murdered and the life savings they plundered. these people are sick. i hear you, david. while i always like to err on the side of compassion, if it's possible, it just hit me today, both of these men are sentenced to what amounts to life in prison and just because their life could end earlier than expected, is it really grounds to go free? and then there was this interesting note from robbin in virginia. i can't understand for the life of me that why it was reported that the obama vacation should be considered a private family vacation when the taxpayers are paying for the vacation. shouldn't the obama's cut down on the expensive vacations since it has been reported that the vacation will cost $20 million. since the country is in economical chaos. first of all, where did you get that $20 million? the house in martha's vineyard rents for $30,000 a week and the obama's are paying that. the money for the secret ser

. >>> new controversy concerning convicted ponzi schemer bernard madoff.oes he have cancer as the new york post and "washington post" are reporting or is the he in good health. the new york post says that madoff has been telling other inmates he does does not have long to live. madoff was sentenced to 150 years behind bars. >>> still to come on 9 news now, the cash for clunkers program was a big hit. now there's a new program in the works to get new energy efficient appliances in to homes across the country. and kim has our forecast. >> good afternoon, j.c. i will let you know how long the beautiful weather will stick around and i'm keeping an eye on the tropics. show you the allergy update. so far the main things we have been dealing with mold and also some of the weeds are in the moderate category. ragweed is one of them. back on the other side of the brk. u are e watching 9 news now. g >>>ic get ready for another tax incentive from the federal government. this is for big appliances. it is all part of the economic stimulus plan. the government will offe

bernie madoff, rumors of cancer?behind bars including reports he is part of a native american prayer group. there are worst things, i imagine. how is he adjusting to life in the slammerer? a prison expert in a second. >>> americans in general in denial about everything. economy, health care and even swine flu. polls out with -- out of sync i should say, with reality. are americans craving good news at their own peril? it is 10:00 a.m. pull up a chair and join the "morning meeting." >>> first and foremost, the president, an hour ago, reappointing ben bernanke to a second term of the chairman of the federal reserve. he credited bernanke's action while helping to put the brings on the free-fall created by the excessive lending that we saw come out of wall street the past ten years but not out of the woods yet. later today the white house will raise its estimate for the national deficit from 7 trillion to 9 trillion over the next decade. that doesn't include the 14 trillion that bernanke himself had to absorb under the f

the trend is being trend"madoff in -- the trend is being called "madoff insurance." >> i have been calling these investigative firms all over the country and all over the world. they are fielding phone calls from investors who may not have been burned, but they are fearful that their investments are sitting with a bernie madoff. they are asking private investigators to look out for their money manager. even if they have been with them for years, they want someone to make sure they are on the up and up, and sometimes, even asking for references to see if they can catch some red flags. shepard: who is hiring these investigators? >> big and small investigators. in some cases, hedge funds, all the way to wealthy families. some individual investors and pension funds. pretty much, there is a big range of investors looking for some sort of madoff insurance. folks that have been with their money managers for 15 or 20 years are saying, "i'd rather know now." shepard: what are they finding out? >> it is pretty interesting. some of the investigators i have spoken with say some investors want to know

another madoff insiders may soon be charged, as well. he has probably been naming names and expect more indictments to follow. >>> general motors and ebay are teaming up to help some dealerships do business online. most gm dealers in california are taking part in the trial program beginning tomorrow. customers can browse, ask question, figure out financing and negotiate prices all there on ebay. if the trial is successful, the companies plan to roll it out nationwide. >>> "g.i. jo stormed the weekend box office. "g.i. joe: the rise of cobra" debuted in the top spot taking in more than $356 million. it is the latest toy turned into box office hit following in the footsteps of "transformers." "julie & julia" opened a solid number two and "g-force" finished third. >>> of course, you can get the latest business news any time on our website, abcnews.com. >>> next on this monday, is freedom in the future for two of charles manson's followers? >>> plus, another kennedy icon in the battle for her life. >>> welcome back. these are the latest head

watch for fresh developments in the bernard madoff scandal. it continues. is the day frank the finance chief at madoff's investment advisory business is expected to plead guilty to criminal charges. 4 e's been with madoff since the 1970's, depas collie may end up becoming a key witness and help prosecutors build criminal cases against the other players in the scheme. madoff repeatedly claimed he acted alo and is currently serving a 150-year prison term. >> on to the housing market. stilla.com says by the middle of next year the mortgage holders who owe more than their home is worth may soar to 30%. in the second quarter 25% of u.s. mortgages were under water and home values in the d.c. metro area fell 1% to an average of $142,000. compared to the second quarter a year ago prices falling 12%. as for trading, l'sak te a look at stock index futures. t ndlogin losses gearing up for a lower open here on wall street. and that is business news le at bloomberg headquarters i'm michelle reporting for abc 7 7 news. pam and alison, you guys have a great day. >> our ti

the day madoff was invested it was busy trying to launch a new madoff fund.d 22% of the company. in june he took position of a big boat called "oxygen" with eight crews, can seat 12 guests, and he's spending the summer floating around on the mediterranean, the adriatic. >> it's been a rough year for him. >> it's been a rough year. >> so now his lawyer claims that he's desperately trying to sell it now. in order to sell a boat are you don't have to be on it. >> what is he asking for? >> where it's listed, his price asking i've heard anywhere between $22 million to $30 million. >> should i make a bid? >> i say absolutely. >> i'll bid $12.5 million. they're as bad as madoff, they hear feeder fund. if i gave this guy $1 million. what he did was he took $150,000 -- he took $15,000, 1.5%, and did no due diligence. these guys were the ultimate power source. >> it's actually even worse, donny. since i broke my story, he likes to talk. he gave an interview to a column bean publication saying i'm a victim. i didn't know anything about mr. madoff and yet -- >> he should

the right-hand man of wind isler bernard madoff is bhe jind bars. frank depossess collie pleaded guilty to helping madoff caacci out one of the bigst fstrauds. he said it was all fake and others were indon' 16ed. as part of his deal with prosecutors he will name the others. >> and discovering dropping fees for those who charge over their credit limit. they will end that about six months before the new renarlations go out. >> and gm says the hybrid chevy volt can go 230 milesrieer galln in the city. the car runs on batteries for about 408 miles and a gas engine kicks in to deep battery charged. the financially strdpedrieostal service is rolling out a n ch bunch ofhe early tv memory stamps are on sale featuring 20 shows that captureed the nation. among them, i love lucy and the honey mooners. >> and coming up how you can take your kids on a fat-free shopping spree. >> that's on "good morning america." >> coming up on good morning, washington, phil stuart has some of the stories you won't find to be frontrieage. >> and on "oprah" it's a don't-mitts hou

the madoff firm, the person they spoke to if they ha questions about their accounts or they wanted to add or withdraw money. >> president barack obama: as president, i will give every child in florida and every child in america the skills, the knowledge they need to compete in the new global economy. [cheers and applause]. >> we will not allow countries to out-teach us today, so they can out-compete us tomorrow. every child deserves a world class education. >> jamie: then candidate barack obama on the campaign trail, in 2008. but as many parents are preparing right now to send their kids to college, in the fall, we wanted to know, where is the money? joining me now, fox business network reporter rich edison. good morning to you. >> reporter: good morning. >> jamie: and the reason i wanted to talk to you, is with all of this cash for clunkers, another $2 billion for clunkers, what about college? what are the the deals are out there right now and is the obama administration making good on the promise that every american student will get a world class education? >> it is beginning to. an

the move follows bernie madoff's conviction for running a ponzi scheme.h madoff has not been charged, but was forced to leeft couple's upscale apartment. >>> a bizarre series of burglars in boston has police on alert. a man walked in to an unlocked apartment and stole a laptop computer but not before stripping off his clothes. investigators say after fleeing the apartment complex, blow into a nearby house and did the same thing. the manager of apartment building isn't sure who the intruder got in, but said the locks have since been changed. >>> a dog was missing a for nine years is finally reunited with its other than. muffy was found more than 1200 miles away from her home in australia on a scrap of cardboard in a backyard in melbourne. muffy apparently has a micro chip in her neck and that's how inspectors were able to identify her and return to the family who had given up all hope of ever seeing her again. >> carrie bradshaw and company were looking to fill a few shoes today. movie producers for "sex and the city" held a big casting call in the big app

today i will talk to you about the cheating, the fact that we have cheating in the news in madoff might make it a particularly appealing topic for this week. so, cheating. like everything else i usually become interested in the problem when i see something in the outside world and in this case it was enron. enron all of a sudden collapsed and became very-- and i was wondering to myself what is going on? is it the case that we had three bad apples or was it something more systematic? that is actually important question because if there were three bad apples he would want to eliminate the bad apples but it is something more general maybe we need to think about a different solution. so like everything we do i decided to do a small experiment and the basic structure of my experiment with the following. a tecate sheet of paper with 20 simple math problems. onesy founded to numbers, you solve the problem. everybody can add two numbers 210, it just takes time to figure out which of the two numbers to add to ten. i gave 20 questions and i said you have five minutes and when the five minutes are

. >>> bern thie madoff, ten charg. frank dipascali told a court yesterday he knew what he was doing, knew it was criminal but he did it anyway. who was this guy? mary thompson in the courtroom had the answers for us. mary? >> during the two-hour hearing the 52-year-old dipascali described how under the direction of his mentor and boss bernie madoff he created false statements for investors and false documents to cover up the $65 million ponzi scheme he called a catastrophe. madoff's former cfo is pleading guilty to all ten counts. in a dark striped suit and pink tie, he was emotional in describing his role in the fraud and while the prosecution and defense pointed out he had been cooperating with the government since january. judge richard sullivan denied request for bail, sending him straight to jail. dipascali facing 125 years, sullivan sadie pascally had ample reason to flee. he had little comfort to victims. >> well, there is that nano second of perverse pleasure you get because you've been suffering for so long, b

cheryl winesteen says th madoff pursued her from the moment they met. says it is a way to replenish the money her family lost to madoff. >>> a the fdic will reveal today how much cash it has left following 81 bank failures this year. one thinks the fund could go negative at some point. that hasn't happened since the ' 90s during the savings and loan crisis but bank customers don't have to worry about this. is time time for thy-e nemothe ng tip of the day. you don't have to buy black and color ink cartridges instead get them refilled at office supply stores and drugstores. it is $10 for a blcak dgacrirte and 15 r fodollars for for more tips eccolor. for more tips check out my blog. at the financialista.com and you know i will back in the next half hour with more stuff. >>> a developing story at this how, police are investigating an officer-involved shooting in northeast dc. at least one suspect was injured in the shooting which happened around 3:30 this morning in the 3300 block of benning road. outbound benny road is blocked from 34th street and anacost

let me say a couple of comments about the stock market and a couple of comments about madoff.ybe i will start with made up. what is known to be the legacy of made of? this has been a terrible event by all accounts, but one of the things that worries me the most was the last experiment in may of. think about the financial community. aidid kind of a tight community. everybody knows each other. what happens when someone in your community chiefs and an egregious way? i don't think anybody else in the community will necessarily start a new ponzi scheme but i think there's a good chance there is the more flexibility within greece as a consequence of this thing. maybe not big things, there would be all kinds of little things that would increase. the second thing is that if you look at the economy and and all the experiments i told you about, we tested about 6,000 students. and all of these experiments, there were about a handful of cheated-- people who cheated a lot. and there were thousands of people who cheated a little. i lost $100 to the people who cheated a lot in thousands of d

madoff customers describe him as the man they dealt with. he worked secretly with the fbi for months. despite his plea bargain, he faces up to 125 years in prison. >> british police are on the hunt for two armed rob who are got away with $65 million in loot from a high-end london jewelry store. newly released video shows the climax from last week's robbery as thieves fled, guns blazing. a security camera inside the store shows the two well-dressed thieves entering. they escaped with dozens of rings, bracelets, earrings, necklaces and watches. luckily no one was hurt. >>> on the money watch, stock markets in asia retreated this morning. claire leka is here with details. >> good morning to you, michelle. the nikkei slumped nearly 1.5%. hong kong stocks slid 3%. wall street starts with its biggest loss in five weeks as investors worry that the markets' steep gains in the past month could unravel if the economy doesn't show more signs of strengthening. the dow jones starts the day down 96 points. the tech heavy nasdaq fell 22. the federal reserv

>> yeah, bernie madoff scared a lot of people, period. so what happens happening now is we are seeing a loft investors large and small, they are going out and hiring private investigators, trying to get them to help them do the due diligence before they turn cash over to be invested with the fun manager. private investigators, they are being asked to get referrals out to people who know the fund managers and looking for red flags. many cases they are asking for private investors to look more into the personal lives of these fund managers. just trying to look for any red flags. shepard: who are the people hiring these investigators? >> investors large and small it started out with mainly the bigger investors in eastern europe. now spread domestically and smaller investors. wealthy families, endowments, charities, foundations and even individual investors. more help looking at either who i'm going to choose to invest with or, in some cases i talked to some private investigative firms who said that some people who were invested with the fund

he helped bernie madoff steal billions from investors, now he says he's ready to name names. >>> and american father, fighting for the young son he says was stolen and left in an italian orphanage. he joins us live with his dramatic story. >>. >> a jewel heist out a hollywood movie. how did crooks steal sz 65 million worth of jewels s in d how did crooks steal sz 65 million worth of jewels s in d daylight? captions paid for by abc, inc. >>> good morning, alongside chris cuomo, i'm robin roberts diane sawyer is off on this wednesday, august 12th. president obama becoming a sort of fact-checker in chief. >> he hasn't seen the ugly scenes we've seen elsewhere, he's the president after all. but look at los angeles this morn, people lining up for free health care. >> so let's begin with our senior white house correspondent jake tapper with the latest on the owing battle over reform. good morning, jake. >> reporter: good morning, robin. the debate over health care reform dominated by the president's opponents but he's seeking to regain moment ul and in doing so, has raised the stakes in th

mary thompson to weinstein's arraignment after madoff's. she withdrew from his madoff accounts earlier. memoir will be published august 25 by st. martins press. up next, ivanka drum open commercial real estate. stuck between not rewarding risk and make sure it is comfortable to industry standards can be a tough thing. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen... your power chair will be paid in full. the scooter store. hi i'm dan weston. we're experts at getting you the scooter or power chair you need. in fact, if we pre-qualify you for medicare reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. call the number on your screen for f

>> we've got breaking news related to the victims of bernie madoff, bob. they're going to find it probably easier to get some of their money back due to a new change announced by irving picard, who's in charge of liquidating madoff's assets and trying to get the money back to them. here's the story. if you gave, say, $500,000 to madoff years ago and it built up to $10 million and you put in a claim for $10 million, irving picard has always said, actually, you're only getting back $500,000. and people have disputed that. what he said in the past was i'll give you the 500 grand if you give up your claims for the rest of the money. now he's changing his position. he says you can still get your 500 grand and still push your claim on the other issues. so some people who were fighting arguing they deserve more money will probably now be able to get money sooner or at least get some cash. that is a change. change in policy by irving picard when it comes to those who are disputing how much money they should be getting back from the liquidation of madoff's assets.