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Florida legislator, 68, forced back into workplace after $3 million loss in Madoff scandal
By JOSH HAFENBRACK
South Florida Sun-Sentinel
Monday, June 08, 2009
TALLAHASSEE — In some ways, Franklin Sands is like untold thousands of victims of the Bernie Madoff investment scam.
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The veteran Wall Street money manager, a part-time Palm Beacher, is accused of duping a long list of investors in a huge Ponzi scheme.
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The Weston retiree lost his life savings, more than $3 million. And with his family's finances wrecked, Sands has been forced to re-enter the work force to make ends meet.
But in another way, Sands is different. He is Florida's minority leader in the state House, a high-profile perch that shines a public spotlight on his attempts to get a new job.
Six months after the Madoff pyramid scam unraveled, Sands, 68, has dyed his hair a more youthful brown and gone back to work as a health care salesman, after seeking an opinion from the state Ethics Commission that such work wouldn't conflict with his official duties.
"I'll be working very hard and trying to do as well as I can financially," said Sands, a Democrat. "In terms of it being a lifestyle change, you bet it is. I go into a store and look at every price and do things differently that I ever would have done before."
Sands hired Tallahassee's top elections lawyer, Mark Herron, to get an opinion on how to pursue work without violating conflict-of-interest laws. The Ethics Commission responded with "general guidance" that state law doesn't specifically prohibit any profession but public officials must be on alert.
"The possibility of a conflict exists in any number of employment and professional opportunities," the opinion said.
Sands said he discarded one option on ethical grounds: lobbying local governments. He said that would be "too easy" and would create a perception problem, since he regularly interacts with local officials in his capacity as a legislator.
Instead, Sands formed a consulting company and is working with a Houston-based health care firm, Benefit Recovery, which buys unresolved health care claims and works out settlements with insurance companies. Potential clients include hospitals that come before the Legislature for funding.
"The bottom line is, I must earn a living and I am a citizen legislator," he said. "I have to do it in a ethical way."
Herron said the key is to disclose any potential conflicts, when a vote would give a special benefit to Sands or his employer. He noted many in the 160-member Legislature are in a similar position, at a time when former House Speaker Ray Sansom is under indictment for funneling money to a college that later hired him to a six-figure job.
In Tallahassee, Sands role is running the 44-member House Democratic caucus, Tallahassee's outnumbered minority party. Aside from an initial interview, he hasn't talked much about his personal turmoil since the Madoff scam was exposed last December.
"Franklin is a fairly private person and did not really discuss any of that," said Rep. Kelly Skidmore, a Boca Raton Democrat and close ally.
Sands, who was born in Brooklyn, has only a high school diploma but made millions in business. He bought and sold mail-order jewelry companies and invested in a minor-league basketball franchise, hotels and a casino. Eventually, he consolidated his financial portfolio with Madoff, who courted clients like Sands in South Florida's Jewish community.
Sands won his first elective office in 2004, when he claimed his Broward House seat. Despite his low-key style, he was selected among his peers to become Democratic leader for a two-year term that expires in 2010.
In office, he's made embryonic stem cell research a top priority, but hasn't had success pushing funding through the Republican-run Legislature.
Sands said seeing his nest egg wiped out has brought his already tight-knit family closer together. "Our kids rally around us," he said. "It's something that I never expected I would see in my life."
Meanwhile, Madoff awaits sentencing on June 29 after pleading guilty in March to swindling investors in a worldwide, $65 billion Ponzi scheme. He faces 150 years in prison.
"What punishment can there possibly be for a person who has ruined so many lives, and the lives of people who are not bad people, who are good people?" Sands said. "And I'm not talking about myself. I'm talking about the widows, the aging widows, who were left penniless.
"He just hurt so many people, and for what? He didn't build anything. He didn't create anything. He just brought shame to his entire family."
More on palmbeachpost.com
West Palm Beach police fund sues over Madoff investment losses (06/08/2009)
Burned retirees sue Madoff trustee over claims (06/08/2009)
Palm Beach residents who claim Madoff bilked them are being targeted over profits they made (06/06/2009)
SEC watchdog probing possible employee disclosures (06/01/2009)
Madoff trustee sues Picowers, Palm Beach foundation (05/19/2009)
Trustee: Madoff firm was family's piggy bank (05/14/2009)
Channel your inner Madoff through a new mobile phone game (05/07/2009)
'Fortune' magazine says Madoff insider may be ready to spill secrets (04/24/2009)
Seizure of Madoff car gets OK (04/16/2009)
Madoff's tickets bid to $2,297 on eBay (04/10/2009)
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By caseyatbat
Jun 8, 2009 1:36 PM | Link to this
If Bernie had pulled this off in China what would be his fate? Wouldn't he have been charged with crimes against the people, tried, found guilty and sentenced to die? It probably doesn't take China 10 to 20 years to carry out a death sentence from what I've read - a matter of days, not years. Here, in the U.S. he was free on bail for a long time until a judge finally got disgusted with him and ordered him to be jailed. What a difference in the justice systems of the 2 countries!
By Prudent Man, CFA
Jun 8, 2009 12:44 PM | Link to this
If Sands was so ignorant and lax about his own funds imagine the waste he is allowing with ours?
My schadenfreude spills over for the power and financial greedy.
By amazed
Jun 8, 2009 10:52 AM | Link to this
Amazing, he took a little time and effort, fixed himself up and went back to work. Just like that. He must have had a real skill, perhaps even an education, to go to work that quickly in these hard times. Of course, over 90% of the work force is working. Shows you what you can do if you apply yourself and stop asking for handouts or for someone else to take care of you. Are you sure he is a democrat?
By mike
Jun 8, 2009 10:44 AM | Link to this
must have been nice sitting on 3 million dollars...
By Jon Kap
Jun 8, 2009 10:34 AM | Link to this
Come on now....who gets huge, guaranteed returns? And who leaves 100% of their money in one investment at age 68? Madoff is a bad dude, but none of his victim's are true victims. They knew the returns could not possibly be real and also were so greedy they left all their money in the fund.
By adg
Jun 8, 2009 10:33 AM | Link to this
its ashame,but atleast he had 3million to lose.....most people wont ever see close to that when they retire. no simpathy here.
By Jon Kap
Jun 8, 2009 10:33 AM | Link to this
Come on now....who gets huge, guaranteed returns? And who leaves 100% of their money in one investment at age 68? Madoff is a bad dude, but none of his victim's are true victims. They knew the returns could not possibly be real and also were so greedy they left all their money in the fund.
By rjr
Jun 8, 2009 10:29 AM | Link to this
Mr. Sands I have a feeling you are going to be OK. Finally someone from the Madoff investers steps up to the plate other than trying to get a pay off from the governnment. You have set an example of what one must do when stricken by an unfair hand. Greive, yes but then move on and you have done that SIR.
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