Sure, it was a Ponzi scheme — but at least it was built on solid investments.
A shady Madoff trader who admitted he knew the firm’s dealings weren’t “kosher” testified Tuesday that he always remained confident in the company’s solvency.
Former Madoff supervisory trader David Kugel, 68, noted that Ponzi villain Bernie Madoff claimed he bought into stable investments such shopping centers, avoided rocketing Internet companies and was a wealthy man with interests in a foreign bank.
“Shopping centers gave you more confidence in Mr. Madoff and his firm?” defense lawyer Roland Riopelle asked Kugel in Manhattan Federal Court.
“Yes,” Kugel replied, adding, “We stayed away from the crazy Internet stocks.”
The cooperating government witness was testifying against five ex-Madoff staffers on trial.
When asked, “You were confident Madoff Securities wouldn’t go up in smoke over some crazy debt?” Kugel answered, “I had confidence, yes.’’
Kugel also said he believed that the sketchy firm could survive any roadblocks because Madoff handled high-profile clients such as Sandy Koufax and Fred Wilpon and the firm had withstood SEC audits.
“You were shocked when it all went up in smoke, right?” Riopelle asked.
“I was in shock,” Kugel answered.
The Madoff Securities veteran testified last week that Madoff had uneven math skills, noting, “He had trouble with long division.”
Kugel will continue his testimony Wednesday.