The Most Dangerous Neighborhood in the United States

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B. Jeffrey Madoff

Founder of Madoff Productions

Posted March 10, 2009 | 05:29 PM (EST) The Most Dangerous Neighborhood in the United States

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"Be careful." "Keep your wallet safe." "Don't get your money stolen." "Stay out of dangerous neighborhoods."

My parents used to say that to me when I was first going out on my own. I never got the definition of what a "dangerous neighborhood" was - you were just supposed to know. It was a place where people preyed on you. Predators, like jackals circling, waiting to pounce, ready to take your hard earned money from you. That's what happens in dangerous neighborhoods. That's why you should stay away from places like that.

As I got older, I wondered what exactly is a "dangerous neighborhood"? Most of us grew up assuming it was an area where poor people lived, people who didn't dress well, didn't have nice homes, didn't have nice cars, didn't have any interest in working for a living. People who just take and assume they'll never get caught or even worse, don't care if they do. However, that is a highly subjective criteria. How does one quantify that and determine the kind of place where you will most likely be separated from your money?

The Federal Bureau of Investigation provides statistics that may help us gain insight into where and how you are most likely to have your money stolen.

The FBI defines robbery as the taking of anything of value from a person by force or threat of violence. Robberies cost victims an estimated $588 million in 2007.

The FBI defines larceny-theft as the stealing of any property or article that is not taken by force or by fraud. In 2007 there were an estimated 6.6 million larceny- thefts, costing victims an estimated $5.8 billion dollars.

Securities fraud refers to deceptive practices in the stock and commodity markets including Ponzi schemes, high yield investment and hedge fund fraud and just about any way it is possible to lie about the promise of big returns on a variety of investment instruments. In 2006, the most recent year a total was listed, the FBI estimated losses at $40 billion.

Corporate fraud cases involve accounting schemes designed to deceptively manipulate the stock price so the value of a corporation remains artificially inflated based on fictitious performance indicators. In addition to significant financial losses, corporate fraud can cause substantial damage to the U.S. economy and investor confidence.

On July 9, 2002, President George W. Bush created the Corporate Fraud Task Force. The Task Force was formed in response to a number of high-profile acts of fraud and dishonesty that occurred in corporate executive suites and boardrooms across the country. The brunt of these schemes was borne by innocent corporate employees, pensioners, and investors--whose futures and fortunes were harmed, and at times, even shattered, by corporate leaders they trusted with their savings.

Since 2002, the President's Corporate Fraud Task Force has worked hard to hold wrongdoers responsible and to restore an atmosphere of accountability and integrity within corporations across the country. [The Task Force] has encouraged corporate transparency and self-regulation. ("The Corporate Fraud Task Force" 2008 report)

How has that self-regulation worked out? Not so well. From 2001 to 2007, corporate, securities and investment fraud cases, have increased of 37%.

Bernard Madoff's alleged Ponzi scheme totaled $50 billon - that is more than the combined FBI total for all the robberies, theft and securities fraud reported in 2007.

Javier Cremades, president of law firm Cremades & Calvo-Sotelo, announced at a news conference in Madrid: "Our calculations are that at least three million people were affected by the Madoff affair." The estimate is based on information collected from over 30 law firms around the world that are representing the 2,900 people or institutions in 25 nations which have so far taken legal action relating to Madoff. And that's just Madoff.

The list of newly uncovered con men continues to grow: Allen Stanford, chairman of the Texas based Stanford Financial Group was charged with an $8 billion fraud. New Jersey fund manager, James Nicholson, was arrested last week in another alleged scheme that could total up to $900 million. Money managers Paul Greenwood and Stephen Walsh have bilked investors for $667 million. Arthur Nadel, a Florida hedge fund manager, is alleged to have defrauded investors out of up to $350 million, and lawyer Mark Dreier, is charged with stealing $400 million in a hedge fund scam.

What do the numbers tell us in terms of where the place is that you are most likely to have your money taken? It's not the people in poor neighborhoods, who live in run down homes and have older cars who are most likely to steal your money. The greatest and most far reaching financial damage is perpetrated by people who reside in wealthy neighborhoods, live in mansions, drive expensive cars and think they will never get caught or in Madoff's case, don't seem to care. They do their business in the most dangerous neighborhood in the United States, Wall Street. And you were afraid that some stranger in a bad neighborhood would take your wallet?

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View Comments: Newest First Expand All Page: 1 2 Next › Last » (2 pages total) - fsilber I'm a Fan of fsilber permalink

White-collar criminals do tend to live in prosperous neighborhoods. Because much of their crime is done by mail and telephone, however, someone who lives on the other side of town from suffers pretty much the same risk as someone who lives next door -- so you cannot protect yourself from them by staying out of prosperous neighborhoods. Because they rely on deception (the victim who recognizes the con can easily protect himself simply by not cooperating), a gun also of little use in these situations, unfortunately.

Most blue-collar criminals, in contrast, live in poor neighborhoods and tend to commit crimes that require their immediate physical presence. Staying out of the neighborhoods where blue-collar criminals spend most of their time is therefore an important tactic. To the extent that they rely on intimidation and threats of violence rather than deception, a gun can be very useful (and even necessary) in protecting yourself from them.

So your parents' advice about avoiding neighborhoods prone to blue-collar crime still makes sense. Or as one retired cop advised me, "Don't go anywhere you think you're likely to need a gun, but carry a handgun just in case. If you must to go somewhere you're likely to need a gun, bring a rifle or a shotgun, and a friend for backup."

As for dealing with Bernie Madoff, well, we'll just have to hope that a few Mafia hitmen were among the people who lost money in his scam.

Favorite Flag as abusive Posted 11:09 AM on 03/12/2009 - luziannagirl I'm a Fan of luziannagirl permalink

A Madoff expounding on the ills of corporate crime? Is the last name coincidence, or is the author related to the world's largest Ponzi-scheme Madoff ?

Favorite Flag as abusive Posted 09:09 AM on 03/12/2009 - Retrofuturistic I'm a Fan of Retrofuturistic permalink

I think I knew this instinctively, that very rich people would hurt me, because I grew up in a family where there was a lot of money, but most of the people weren't very nice to me.

Don't forget about the religious predators who also contributed to the present state of mass robbery of the American people.

We need to beware of people who cloak themselves in sanctity and people whom we want to respect for their money and not their character.

It's basically about exalting the ego, either through religion, appearance, or money. And the ego is such a voracious beast, that people who need to have their self-esteem bolstered will go to very great lengths, at great expense to others, to enhance it.

Favorite Flag as abusive Posted 04:22 PM on 03/11/2009 - ultrabop I'm a Fan of ultrabop permalink

Which brings up the question: why do we need banks? We could all have locked safes in our houses to store our money.

The only people who need banks are corporations. Corporations need huge cash flows to promote products and lifestyles and wars that we don't need, food that we shouldn't eat, cars that we shouldn't be driving, houses that we shouldn't be living in, just so the CEOs can support their lavish lifestyles.

Obama! Wake up. It's time to take back America!

Favorite Flag as abusive Posted 03:22 PM on 03/11/2009 - -0013 I'm a Fan of -0013 permalink

"Which brings up the question: why do we need banks? We could all have locked safes in our houses to store our money. "

Yeah, that's a great idea. How would people be able to take out loans to buy homes, cars, start businesses. How would businesses run without lines of credit? That's just a couple things.

You really thought this through. Good luck with your piggy pank under your bed.

Favorite Flag as abusive Posted 04:41 PM on 03/11/2009 - carrieanna I'm a Fan of carrieanna permalink

I don't see anything wrong with independent banks and credit unions. Target your anger at these franken-banks who aren't actually banks, but "investment" institutions.

Favorite Flag as abusive Posted 03:20 AM on 03/12/2009 - dawlishgal I'm a Fan of dawlishgal permalink

What good would locked safes do in case of a fire or a home invasion by people with guns? Of course, there is always the threat of inflation too. If we keep printing money, the money in your home safe won't be worth much.

Favorite Flag as abusive Posted 12:04 PM on 03/18/2009 - TrooAmerican I'm a Fan of TrooAmerican permalink thanks for writing this article. I have been telling CNN for months that the fact is that Wall street has committed far worse theft than any common theives combined. As well, a prime example of rich people getting special treatment is Madoff sitting in his millions of dollars worth of Penthouse while awaiting charges while any other person would be sitting in jail.

Additionally, its also a prime example of the war on the middle and poorer classes by the wealthy for decades. Its also clearly a pattern set by the Bush administration and its cronyism they installed during his tenure. They are inept people, unqualified completely, and totally on the take with a common GOP agenda to make the rich richer while taking from the consumer everything.

Favorite Flag as abusive Posted 03:14 PM on 03/11/2009 - -0013 I'm a Fan of -0013 permalink

If a person can make bail for a non-violent offense they shouldn't have to be in jail.

People only like our legal system when it works for them. Hypocrite.

Favorite Flag as abusive Posted 04:42 PM on 03/11/2009 - MCTSilverlakeCA I'm a Fan of MCTSilverlakeCA permalink

Yeah, it's "do as I say", not "do as I do" in the banking and big financial industry ... I mean, there's only so much room at the Top of Capitol Hill ... and they are too busy pushing the rest of us down it --while trying to be King of that Hill...

Favorite Flag as abusive Posted 02:34 PM on 03/11/2009 - digital I'm a Fan of digital permalink

You should sue Bernie for defamation of character.

Favorite Flag as abusive Posted 02:21 PM on 03/11/2009 - bayside I'm a Fan of bayside permalink

And to think how close we came ro having our social security taken by wall street crooks..Republicans tried..

Favorite Flag as abusive Posted 02:11 PM on 03/11/2009 - MCTSilverlakeCA I'm a Fan of MCTSilverlakeCA permalink

Thank the Gods of Democratic Fortune that we saw through THAT in time...

Favorite Flag as abusive Posted 02:21 PM on 03/11/2009 - leanandsuperfit I'm a Fan of leanandsuperfit permalink

The success of evolving man to endure and replicate has been primarily dependent on primordial survival skills. We fear spiders and snakes more than we fear a depleting ozone. But which one is more likely to cause us harm? We fear skydiving more than we fear driving our car to the store. But which one is more likely to end in a tragedy?

Insects, reptiles and an inherent understanding that falling from high places can cause harm or death have been in existence far longer than any concept that we may be bilked out of hard-earned cash by a few greedy bastards on Wallstreet or elsewhere. It makes sense that we are less likely to be skilled at noticing this type of harm -- it's incredibly new compared to the skills God/biology have given us since the dawn of time.

Whether it's a thug on the street or a suit on Wallstreet the likelihood of being harmed by either is mostly proportional to the risks one is knowingly, unwittingly or ignorantly taking and how alert and aware we remain of the "neighborhoods" we are passing through.

Favorite Flag as abusive Posted 01:32 PM on 03/11/2009 - ariveria I'm a Fan of ariveria permalink i believe it was woody guthrie who said

"you can steal more with a fountain pen then a gun"

Favorite Flag as abusive Posted 11:05 AM on 03/11/2009 - larry278 I'm a Fan of larry278 permalink

I think Wood would have updated to say, "You can steal more with a computer of pen than a gun.'. It's a lot easier to steal with a pen or computer than with a gun. You don't risk getting shot when you steal with a pen or a computer either. If you do get caught stealing with a pen or computer, you don't do any or much time. Then, too, you can steal a hell of a lot more money with a computer or pen than you could ever steal with a gun. 7-11's don't have more than $700.00 in the till. Try stealing 5 billion from a bank during a hold up or cracking a safe. If the cash or negotiable instruments aren't in the bank, you can't steal it. Did you ever try to carry $5 billion in $100.00 bills out of a bank? If you must steal, steal in the 10's of billions. Anything less than $10 billion is petty thievary, small time & chump change. Crime pays very well for some; the hours ain't band, neither. No wonder so many people love capitalism. Look at what some Russians have gotten since 1990. My god, how the money rolls in [in Russia].

Favorite Flag as abusive Posted 12:33 PM on 03/12/2009 - overd0g1 I'm a Fan of overd0g1 permalink

Duh. On the other hand, actually "robbers" might actually kill you, which is less preferable than being swindled for most people.

Favorite Flag as abusive Posted 10:16 AM on 03/11/2009 - wltdnfaded I'm a Fan of wltdnfaded permalink

What planet are you from? Favorite Flag as abusive Posted 11:27 AM on 03/11/2009 - Steve Magruder I'm a Fan of Steve Magruder permalink

So, you would rather die than lose money?

Favorite Flag as abusive Posted 12:26 PM on 03/11/2009 There are More Comments on this Thread. Click Here To See them All - RedneckDem I'm a Fan of RedneckDem permalink

I think its more like you may die by someones elses gun in a robbery and you may die by your own gun when everything you had is taken from you by a robber baron. Either way you are both helpless...

Favorite Flag as abusive Posted 12:03 PM on 03/11/2009 - curly2 I'm a Fan of curly2 permalink

I agree with you. When I feel "unsafe" walking down the street, I'm not worried about the money in my pocket or my credit cards. I'm worried about being physically hurt.

Favorite Flag as abusive Posted 12:41 PM on 03/11/2009 - returnofthejedi I'm a Fan of returnofthejedi permalink

More than likely that robber that is a threat to you would be less of a threat if employed. Poverty and crime have been together sense the beginning. Even in nature a hungry dog will try to steal food from a lion. Is it because the dog is evil? Is he a thuggish dog? No, he is just like any other dog that would do the same thing when starving. "Robbers might actually kill you?" So might misguided over zealous police officers. Ask Mr Sean Bell of New York...... oh wait you can't someone shot him 50 times. Can you tell me the difference?

Favorite Flag as abusive Posted 07:26 AM on 03/12/2009 - Melissa O I'm a Fan of Melissa O permalink

Hmm... I'll watch out the next time I walk down Wall Street

Favorite Flag as abusive Posted 09:39 AM on 03/11/2009 - returnofthejedi I'm a Fan of returnofthejedi permalink

So will I...... Wait that's if im not escorted away first.

Favorite Flag as abusive Posted 10:06 AM on 03/11/2009 - MCTSilverlakeCA I'm a Fan of MCTSilverlakeCA permalink

You'll certainly be escorted away from Wall Street if you are unemployed... just the other day I was told I no longer qualify for a job in my industry (Insurance Litigation) because I have a "negative credit report history" ... a "history" that was caused by this same arrogant banking industry's attitudes... an unfair, discriminatory employment "rule" that reflects one industry's attempt to force everyone else in the country to dance to their tune... and oh yes, even to bail them out with more of our money -- when they deliberately screw up and conceal it from us, lie to us with straight faces, and then cry "poor mouth" when they are caught...

Even Donald Trump whose arrogance on television and radio has recently been involved in financial scandal--- apparently he's been caught selling expensive housing that he hadn't even built - and apparently has no intention of building .. where's Ross Perot when we need him?

Favorite Flag as abusive Posted 02:19 PM on 03/11/2009 - returnofthejedi I'm a Fan of returnofthejedi permalink

Segregation and double standard is still alive in all aspects of American life. The Bush Administration proved this beyond a shadow of a doubt. Bernie and friends came along and put the icing on the cake. If a minority citizen put together a criminal enterprise worth 50 billion dollars, you could very well bet that the powers that be would have made them a household name. Before this year I had never heard of Bernie Madoff. I sure know who Frank Lucas is. I know all about the crips and bloods, even though I have never been robbed or shot by anyone of them. Years of this type of double standard in law enforcement has led to criminals above the law.

Favorite Flag as abusive Posted 09:27 AM on 03/11/2009 - overd0g1 I'm a Fan of overd0g1 permalink

Only if you are stupid enough to equate being murdered with being stolen from.

Favorite Flag as abusive Posted 10:16 AM on 03/11/2009 - wltdnfaded I'm a Fan of wltdnfaded permalink

Wow. Are you for real? So it's completely fine to be robbed by the rich as long as they don't kill you? Are you Jim Cramer?

Favorite Flag as abusive Posted 11:29 AM on 03/11/2009 There are More Comments on this Thread. Click Here To See them All - ultrabop I'm a Fan of ultrabop permalink

I've been in a lot of poor neighborhoods all over the world and never been robbed. I'm being roughed up every day by the criminals on wall street. They have taken me hostage, they have my money in their grubby hands, and they are slowly eating me up with their nonsense. Their products are poisoning me. They fill our skies with filth. They slaughter innocents overseas to fill their pockets with gold. They fill the air waves with hate.

You think murder comes from the underclass?

Favorite Flag as abusive Posted 03:36 PM on 03/11/2009 - returnofthejedi I'm a Fan of returnofthejedi permalink

When you rob the public and spread poverty you are also spreading crime. Gangs thrive in poor neighborhoods because it is easier to recruit someone that is down and out, than it is to recruit someone that has a decent job and standard of living. I think this is a no brainer. When your talking about Billions of dollars sir, there is no way your going to tell me that some form of violence is not threatened or carried out to keep "pesky little facts" from being known. that's just too much money and people are willing to do too much to get a piece of it. So you can spare me the "oh if im stupid enough" crap.

Favorite Flag as abusive Posted 07:13 AM on 03/12/2009 - PerfumeisToxic I'm a Fan of PerfumeisToxic permalink

Also corporations run by immoral greedy people KNOWINGLY kill and make sick millions of people each year with toxic products and unsafe food and drugs. But they do not get charged with the assualts and murders that they commit. Many more people die from toxic products, food and drugs than at the hands of violent criminals.

Favorite Flag as abusive Posted 10:24 AM on 03/11/2009 - -0013 I'm a Fan of -0013 permalink

Frank Lucas was a murderer and drug dealer. The bloods and crips are the same thing.

Madoff, first of all is Jewish and therefore a minority. Also, he's wasn't selling crack and killing people.

Finally, I bet there a lot of things and people you've never heard of. So what?

Favorite Flag as abusive Posted 04:45 PM on 03/11/2009 - returnofthejedi I'm a Fan of returnofthejedi permalink

The point is not to excuse Frank Lucas or the gangs for the things they have done. The point was to show that there is a problem in perception when it comes to what a criminal is in the eyes of the public. Madoff has caused much suffering with what he has done as well sir. I think one or two people actually committed suicide as a result.

Favorite Flag as abusive Posted 11:50 PM on 03/11/2009 - maryyooch I'm a Fan of maryyooch permalink

It has always been the wealthy corporate ones. For instance, if the give you a low paying job, they tell you if you work hard, then you'll be able to either climb the ladder or get a raise here and there. Wrong! You work your a$$ off for them, put in countless hours, neglect your family life thinking it's only temporary, and what do you get? A pink slip.

Favorite Flag as abusive Posted 09:05 AM on 03/11/2009 - RS I'm a Fan of RS permalink

A big, huge AMEN to that, maryyooch. Here's an eye-opening website that I believe EVERY working class American should check out--it provides smoking gun proof that IT'S NOT WHAT YOU KNOW that gets you to the top in the U.S. today--IT'S WHO YOU KNOW:

http://www.theyrule.net

Favorite Flag as abusive Posted 10:16 AM on 03/11/2009 - MCTSilverlakeCA I'm a Fan of MCTSilverlakeCA permalink

"It's ... Who YOU KNOW"... It's always been that way... did you know that President George Washington didn't seek a second term of office because he thought that once we were a new country that we would make him King? This kind of "noble arrogance" has been allowed to continue because we the Voters have neglected our right to read -and reject --the real laws being enacted by the Private Interests of the Wealthy in this country - the Laws none of us have any input into --the laws they pass because they benefit them, not us.

Favorite Flag as abusive Posted 02:27 PM on 03/11/2009 - forebode I'm a Fan of forebode permalink

Like I've heard it, it's who you know and who you blow.

Favorite Flag as abusive Posted 02:53 PM on 03/11/2009 - returnofthejedi I'm a Fan of returnofthejedi permalink

This has been a fact for far to long. You can go in just about every inner city neighborhood in the country and you will find government regulation and law enforcement gone to absurd levels. Yet there is never the same atmosphere in more affluent and less diverse areas of the same city. There is just as much drug abuse going on, and many more dangerous criminals. The only differense being the criminals in these communities are well connected and do not have to deal with being labled crooks because they wear suits and ties.

Favorite Flag as abusive Posted 08:48 AM on 03/11/2009 Page: 1 2 Next › Last » (2 pages total)

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