Posts filed under “Legal”

Madoffs Victims

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
Banco Popolare bank n/a MarketWatch
BNP Paribas bank n/a WSJ
Norman Braman individual n/a WSJ
Lautenberg Family Foundation charity n/a AP
Loeb family family office n/a CNBC
Nomura bank n/a WSJ
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
UniCredit financial firm n/a MarketWatch
Lawrence Velvel individual n/a WSJ
Wilpon family family office n/a WSJ
Yeshiva University university endowment n/a WSJ

Hat tip: Fin Alternatives

Category: Digital Media, Legal

Madoff Story Smells Funny

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.


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.

Read More

Category: Credit, Legal, Markets, Regulation

NYT: Don’t Forget Shumer’s Role in the Mess

“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

Category: Bailouts, Corporate Management, Legal, Markets, Regulation

Be Wary of Serial Correlation

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

Category: Hedge Funds, Legal, Markets, Mathematics, Quantitative

Inside Wall Street’s Madoff Scandal

A “Giant Ponzi Scheme” – Interview with Aksia CEO Jim Vos: Advised Clients Not to Invest with Madoff



Category: Legal, Video

History Lesson: Madoff tops charts; skeptics ask how

> 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 >

Category: Legal, Regulation

More CRA Idiocy

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

Category: Bailouts, Data Analysis, Legal, Politics, Psychology, Regulation

SEC’s Chair’s Bailout Bull$%&t

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

Category: Bailouts, Legal, Markets, Regulation

Getting Mortgage Fraud Down to an Art

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

Category: Bailouts, Legal, Real Estate

Video: Mortgage Racket as Art

Orson Benn’s network of mortgage brokers wrote thousands of subprime loans in Miami-Dade which have gone into foreclosure.

via the Miami Herald

Category: Legal, Real Estate, Video