I didn't know this part. Sounds like the kid did the right thing.
No, he did not do the right thing. His father, his brother and he all knew that their scam was about to implode. So they agreed that the father would claim he acted alone and that the sons would turn him in to avoid prison themselves. That was the deal, and a very cynical and amoral one at that.
Bernie's story was that he was the only family member that knew his business was a scam.
I have always doubted this, but I don't really know.
Bernie knew the house of cards was collapsing. If he wanted his sons to be protected and not live out their lives in prison (and separated from Bernie's grandchildren) then there had to be a story.
The story of Bernie's "confession" and the subsequent call to the police by his son would be easy for the Madoffs to contrive.
I have always assumed that this is what happened, but as I've said I don't really know.
I don’t understand how a spouse is exempt from testifying against a spouse, but a parent or child isn’t.