Web site exposes crooks, teaches a lesson

It’s not the first time Bernie L. Madoff has had his name in lights this year. But with his induction into the newly launched Con Artist Hall of Infamy, it may be the first time his exploits will serve a constructive purpose.

The gallery of rogues at www.thehallofinfamy.com, which went public Thursday, is designed as a comprehensive educational tool to help people understand and prevent white collar crime.

The San Francisco-based nonprofit site is the brainchild of financier Warren Hellman, founder and chairman of the Hellman & Friedman private equity firm, and Arthur Rock, a venture capitalist who was among the first investors in Intel Corp. and Apple Inc.

Halls of fame are usually reserved for rock stars and sports giants, but in the vein of the National Museum of Crime & Punishment in Washington, D.C., or the America’s Most Wanted television show, Rock and Hellman wanted to include fraudsters who made their own scandalous mark.

There are 35 inductees to the Hall of Infamy so far.

Madoff, the former Nasdaq chairman who was sentenced earlier this week to 150 years in prison after pleading guilty to swindling investors of billions, is the most current crook.

Charles Ponzi, the namesake of the Ponzi scheme, is also a member, thanks to his postal coupon scam in the early 1900s. There’s also Scottish playboy and French Minister of Finance John Law, who bankrupted thousands of Parisians in the early 18th century.

Current and future inductees are judged using one of four criteria: That they stole or caused shareholders to lose huge sums; displayed a colorful character; committed a crime that resonated throughout an entire industry or compelled new legislation; or were proven guilty in court.

There are no women in the hall – not yet, anyway.

“Maybe they’re too smart to get caught, or they’re actually too honest,” Hellman joked.