Posts filed under “Legal”
A partial list of Bernard Madoff’s alleged ponzi scam victims
|Madoff Investor||Investor Type||Possible Losses||Source|
|Fairfield Greenwich Group||alternatives firm||$7.5 billion||firm statement|
|Banco Santander||bank||$3.5 billion||El Pais|
|Kingate Management||alternatives firm||$2.8 billion||Bloomerg News|
|Ascot Partners||hedge fund||$1.8 billion||Wall Street Journal|
|Benbassat & Cie||bank||$935 million||Le Temps|
|Union Bancaire Privee||bank||$846 million||Le Temps|
|Fix Asset Management||alternatives firm||$400 million||firm statement|
|Pioneer Alternative Investments||alternatives firm||$280 million||Bloomberg|
|Maxam Capital Management||fund of hedge funds||$280 million||WSJ|
|EIM Group||bank||$230 million||Le Temps|
|Carl and Ruth Shapiro Family Foundation||charity||$145 million||Boston Globe|
|Vincent Tchenguiz||individual||$61 million||The Telegraph|
|Banque Benedict Hentsch||bank||$47.5 million||firm statement|
|Town of Fairfield, Conn.||pension fund||$42 million||Associated Press|
|Reichmuth Matterhorn||bank||$33 million||Le Temps|
|Bramdean Asset Management||alternatives firm||$31 million||WSJ|
|Madoff Family Foundation||charity||$19 million||WSJ|
|Richard Spring||individual||$11 million||WSJ|
|Robert I. Lappin Charitable Foundation||charity||$8 million||Washington Post|
|Chais Family Foundation||charity||$7 million||WSJ|
|Julian J. Levitt Foundation||charity||$6 million||WSJ|
|Neue Privat Bank||bank||$5 million||Bloomberg|
|North Shore-Long Island Jewish Health System||pension fund||$5 million||statement|
|Ira Roth||individual||$1 million||WSJ|
|Steven Abbott||individual||less than $1 million||WSJ|
|Access International Advisors||hedge fund||n/a||firm statement|
|Lautenberg Family Foundation||charity||n/a||AP|
|Loeb family||family office||n/a||CNBC|
|Notz, Stucki & Cie||bank||n/a||Le Temps|
|Optimal Investment Services||alternatives firm||n/a||Bloomerg|
|Palm Beach Country Club||country club||n/a||CNBC|
|Sterling Equities||investment firm||n/a||firm statement|
|Tremont Capital Management||fund of hedge funds||n/a||WSJ|
|Thyssen family||family office||n/a||Clusterstock.com|
|Wilpon family||family office||n/a||WSJ|
|Yeshiva University||university endowment||n/a||WSJ|
Hat tip: Fin Alternatives
I have no special insight into the Madoff story.
However, my spidey sense is tingling.
Consider this: Running a billion dollar Ponzi scheme has to be very time consuming. Running a $50 billion Ponzi scheme by yourself, at age 70?
I don’t think it can be done.
Just generating the phony transaction receipts is a full time job. How did this son-of-a-bitch do it all by himself? Madoff HAD TO HAVE HELP.
I simply cannot believe he did it himself, all alone. His entire scheme was predicated upon finding another 1% of assets every month to payout to the prior investors. Between raising moeny and running operations, it was more than a 1 man job.
And when the market hit the skids and topped out so fast — it fell much quicker in 2008 than in 2000 — he ran out of manuevering room. Madoff had to know he was going down, and everyone who was working with him — everyone who knew of the scheme — they were going down, too.
So he confessed — TO HIS SONS. AND THEY TURNED HIM IN.
And Bloomberg reports they are already represented by Martin Flumenbaum, a lawyer.
Maybe I’ve read one too many detective novels, but consider this strictly hypothetical, based on-no-facts whatsoever, wildly imaginative hypothesis: If I were running a $50 billion Ponzi scheme, I would have to bring in someone close to help me with it.
Who is closer than my family?
When it became clear there was no where else to turn, instead of bringing down the entire dynasty, I would have them turn me in, to protect the family and what left of the legacy.
I would take the fall so they wouldn’t have to.
As I noted, I have no special facts, no insight into this what-so-ever. Other than the story we have been fed so far doesn’t make any sense.
Who was Madoff’s accomplices? I have no idea, but there has to be some! If I were the SEC, I would be looking over close friends and family closely. Very, very closely.
“Since the financial meltdown, people have been asking, ‘Where was Congress? Why didn’t they see this coming? Why didn’t they provide better oversight?’ And the answer for some, including Senator Schumer, is that they were actually too busy pursuing a deregulatory agenda. Their focus was on how we have to lighten up regulation on Wall…Read More
MIT’s Andrew Lo: The key concept here, developed by MIT professor and noted hedge-fund theorist Andrew Lo, is “serial correlation.” Simply put, serial correlation is the degree to which each month’s returns in a fund mirror the results of the month before. A fund that returns the exact same amount every month is perfectly serially…Read More
> Go to NakedShorts and read the entire 2001 article of the various ways some people challenged the Madoff story: > If it sounds too good to be true… > UPDATE: Paul points to this Barrons story from 2001 Don’t Ask, Don’t Tell Barron’s MAY 7, 2001 http://online.barrons.com/article/SB989019667829349012.html >
Howard Husock has an exercise in cognitive dissonance in today’s NYT Op-Ed pages titled Housing Goals We Can’t Afford, and it begins: “The national wave of home foreclosures, many concentrated in lower-income and minority neighborhoods, has created a strong temptation to find the villains responsible.” What can you say about an Op-Ed whose very first…Read More
In what I can only type with a combination of disgust and astonishment, SEC Chairman Christopher Cox blames the current crisis on the “boom-and-bust cycles” of markets. “Financial markets, of course, are not perfect. In particular, they are susceptible to boom-and-bust cycles. Cycles of this sort have been a hardy perennial over the past 400…Read More
Astounding: Orson Benn, once a vice president at the nation’s largest subprime lender, spent three years during the height of the housing boom tutoring Florida mortgage brokers in the art of fraud. From his office in New York, he taught them how to doctor credit reports, coached them to inflate income on loan applications, and…Read More