Bernie Madoff

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    News

    German Hedge Fund Manager Who Fled To South America And Lived Under An Assumed Name For 5 Years To “Find Meaning” In His Life Has Learned A Few Things

    The bits of wisdom Florian Homm picked up during his stay in Colombia, where he was getting some “me time” and not trying to distance himself from angry investors whose money he’d lost, can be found in the book he wrote about living underground (“Kopf Geld Jagd”), which he hopes will be a “hard-core wake-up call” readers who are “trying to get a second Mercedes and a bigger boat.” For those who can’t wait for the English version, from an interview with the Times we learn:

    / Nov 20, 2012 at 3:31 PM
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    Mutual Fund Managers Have The Wrong Skills

    We’ve talked a bit before about how there’s a booming academic business in papers finding that investment managers do or do not add value versus non-managed alternatives like passive indexing or keeping your money under your pillow and just burning a constant percentage of it every month. Part of why that’s a thing is that […]

    / Jun 25, 2012 at 12:56 PM
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    Bernie Madoff Is Still The King

    Though it looked like Sir Allen Stanford might dethrone him with a recommended sentence of 230 years…

    / Jun 14, 2012 at 1:28 PM
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    So Allen Stanford Might Be Going Away For A While

    U.S. prosecutors have urged a judge to send convicted financier Allen Stanford to prison for 230 years, calling him a “ruthless predator” whose $7 billion Ponzi scheme was among the most egregious frauds ever undertaken. Such a sentence, the maximum recommended under federal sentencing guidelines, would be 80 years longer than Bernard Madoff got in […]

    / Jun 11, 2012 at 2:56 PM
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    Former Madoff Employee Pleads Guilty To *A* Madoff Securities Scam Just Not *The* Madoff Securities Scam

    You know what has got to suck? When you decide to start charging stuff that doesn’t fall under “business expenses” to your corporate card and engage in a few other amateur hours scams that probably wouldn’t have been found out (or, if discovered, not taken to the authorities because your boss had high tolerance for fraud) but then they are because the CEO of your firm had to go and engage in the largest Ponzi scheme on record, which shone an uncomfortable light on company personnel and all of the cheese, popcorn, and salsa of the month clubs you joined (for example).  Craig Kugel knows what we’re talking about.

    The son of a longtime trader for convicted Ponzi scheme operator Bernard Madoff pleaded guilty to conspiracy and other criminal charges Tuesday, but denied any involvement in the decades-long fraud. Craig Kugel, the son of David L. Kugel, a former supervisory trader in Madoff’s proprietary-trading operation, admitted to filing false forms that claimed people were on the Madoff payroll when they didn’t actually work for the firm and to not declaring as income personal expenses charged to the firm’s corporate credit card. Those individuals were paid salary and benefits, but weren’t actual employees, he said. “I am sorry for my lapses in judgment in committing these federal crimes, but I want to make clear I had nothing to do with the Madoff Ponzi scheme and I was never involved in the Madoff trading operation,” Craig Kugel said at a hearing before U.S. District Judge Laura Taylor Swain in Manhattan.

    Ex-Madoff Employee Pleads Guilty to Conspiracy [WSJ]

    / Jun 5, 2012 at 6:18 PM
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    Bernie Madoff Not Feeling Wilpon Settlement

    Convicted fraudster Bernie Madoff was “desperately disappointed” that the owners of the Mets chose to settle the fraud lawsuit brought on behalf of victims of Madoff’s Ponzi scheme, CBS News reported Wednesday. “He wrote me last weekend that he was so looking forward to that trial,” said Diane Henriques, author of the book “Wizard of […]

    / Mar 21, 2012 at 3:27 PM
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    Bernie Madoff Was Just Trying To “Change The Way Money Was Managed,” Not That Anyone Cares

    For about a year now, Bernie Madoff has been holding court with various members of the press about something that’s been plaguing him: the fact that few people if any are willing to give credit where credit is due. Yes, he may have pleaded guilty to a $50 billion crime that ruined countless people’s lives, including those of his wife and children, one of whom committed suicide as a result, but he did a lot of other stuff too, like run a “successful business” for which he won lots of “industry awards” during his “legitimate years.” And, yet, everyone seems to forget all that when his name comes up, much like they conveniently forgot about how Mussolini made the trains run or time, or how Hitler built those wonderful autobahns, or how Ted Bundy made women feel special. And since he’s serving a 150 year sentence, Berns has had lots of time to ponder why his years of legitimate achievements go unmentioned and the one thing he keeps coming back to? Irving Picard, who’s pulled a fast one on you all, by suggesting that Bernie’s crime started wayyyyy before it did, when, in fact, Madoff Securities was only running a Ponzi scheme for barely even 20 years. Examine the evidence Madoff shared with Forbes contributor Diana B. Henriques via email:

    Jan. 17, 2011 11:05 A.M. … Also remember that the U.S. Attorney admitted that they had no evidence that the crime started in the 80’s and could establish that Montauk and the N.Y. homes in Ruth’s name were not purchased with tainted funds …

    Mar. 10, 2011 7:35 A.M. … I would love to know what evidence [Picard] has to date my crime back to 1983 … THE FACT IS THAT THERE IS NONE.

    8:05 A.M. … I say once again the fraud started in the 90’s …

    Mar. 18, 2011 9:26 A.M. … I guess I’m obsessed with this START OF CRIME ISSUE.

    Don’t you see, idiots of the media?! That’s the real issue here. Not the crime itself but the start of the crime. Do the math.

    Oct. 11, 2011 7:20 A.M. … You can do a back of the envelope calculation as follows. From 1963 I made substantial arbitrage profits for the Picower, Shapiro and Chais families joined by the Levy family in 1970. [M]ost of these profits were re­invested and the amounts compounded. In 1970 Saul Alpern formed his partnerships later [run] by Avellino and Bienes. In 1980 I started trading for [French banker] Albert Igoin and his French and Swiss banking associates. All of these accounts averaged about 20% annually and were involved in various forms of convertible arb using bonds, pfds [preferreds], Rts. [rights] and units. [A]nd ALL WERE LEGITIMATE TRADING. THIS CONTINUED THRU THE EARLY 90’S.

    Nov. 24, 2011 6:51 P.M. … When you look at my RIDDLE [in the Nov. 23 letter], consider the fact that there was in fact no crime until I did not have enough capital in the firm to cover the losses. There is your real STORY

    The interesting thing here is not that there was an 11-figure fraud, okay? The interesting thing is how long the 11-figure fraud went on. And it stinks to high hell that that slippery fuck Picard and Co. are claiming it dates back to 1983 and that you’re all buying it, hook, line and sinker. Come on, people. They’re lawyers. Who are you gonna trust, them or a Ponzi schemer? But don’t feel sorry for Bernie. Feel sorry for yourselves, for what could have been and what never was.

    Near the end of that e-mail the clouds of self-deception close in again, and Madoff turns himself into a pitiful martyr: “I made the tragic mistake of trying to change the way money was managed and was successful at the start, but lost my way after a while and refused to admit that I failed at one point.”

    HE WAS TRYING TO THE WAY MONEY WAS MANAGED! A legitimate way to make Ponzi scheme payments, before it was tragically snuffed out.

    Oct. 11, 2011 7:36 A.M. … I will never get over the distortions being presented by everyone as to the poor and now homeless when in fact they all signed documents when opening their accounts that they were sophisticated and had enough wealth to withstand the possible losses of short term trading. I wish I had saved the hundreds of letters I received thanking me for how I was responsible for their happiness over the years and their pleading with me to keep their accounts open when I tried to close them … when I worried about the wreckage I might cause if I couldn’t recover.

    Is the REAL STORY that the investor agreements specifically authorized BLMIS to make Ponzi scheme payments (a totally legitimate type of securities transaction, a short term trade if you will)? Unless someone pulls their head out of their ass, the world will never know.

    Exclusive: The Secret Madoff Prison Letters [Forbes]

    / Mar 20, 2012 at 1:48 PM
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    News

    Mets Owners Will Use The “No One Would Intentionally Rip Off Sandy Koufax” Defense in Madoff Case

    Baseball Hall of Fame pitcher Sandy Koufax may testify for the owners of New York Mets at a civil trial accusing them of turning a blind eye to Bernard Madoff’s epic fraud. … According to the Mets owners, Koufax opened a Madoff account at Wilpon’s suggestion, and has been a lifelong friend of Wilpon, with […]

    / Mar 13, 2012 at 4:42 PM
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    Inspector General David Kotz Really Inconveniencing SEC Staffers’ Ability To Look At Porn, Not Uncover Fraud, Gripe Employees

    In recent years, the Securities and Exchange Commission has been known more for its fuck-ups than successes. The regulator took a pass on heeding the warning signals by Bernie Madoff himself that he was running a Ponzi scheme, it chose to go after David Einhorn rather than Allied Capital when the hedge fund manager suggested […]

    / Nov 3, 2011 at 6:48 PM
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    Bernie Madoff Can’t Say Enough Good Things About Prison

    Barbara Walters told ABC’s “Good Morning America” on Thursday that she interviewed Madoff for two hours at the prison in Butner, N.C., where he’s serving a 150-year sentence. No cameras were allowed in the prison. Walters said Madoff told her he thought about suicide before being sent to prison, but since he’s been there he […]

    / Oct 27, 2011 at 12:07 PM
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    Bernie Madoff Couldn’t Be Happier Behind Bars

    Maybe, you thought, Bernie Madoff wouldn’t like prison. Maybe, you thought, after a life of luxury, living in an 8X10 would cramp his style. Maybe, you thought, that he’d have trouble earning 14 cents an hour sweeping the floors, after spending several decades ‘earning’ millions making fake trades. Maybe, you thought, he wouldn’t take to […]

    / Oct 21, 2011 at 4:08 PM
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    Bernie Madoff Beats Reporters Off With A Stick, No Longer Respects Charlie Gasparino

    The Ponz Master apparently emailed Gasparino to tell him as much last night and to let him know that their previously scheduled date? CANCELED.

    / Aug 31, 2011 at 4:04 PM
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    Bernie Madoff Under The Impression That Harvard Plans To Teach A Course Based On His Legitimate Years

    Since February, Bernie Madoff has been on a little something called the Legitimate Years Tour. Yes, he may have pleaded guilty to a $50 billion crime that ruined countless people’s lives, not to mention resulted in the suicide of his own child, but why must that be all that is said of him, when it […]

    / Aug 25, 2011 at 11:39 AM
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    Walter Noel’s Daughter Apparently Failed To Get Bernie Madoff’s Advice On How To Run A Scam For Years Without Anyone Catching On

    Remember Marisa Noel Brown? She’s the youngest daughter of Fairfield Greenwich Group founder Walter Noel, whose role in the Madoff scam resulted in the family being kicked out of their country club and being forced to sell their share of a private jet. As her husband was a FGG employee at the time the shit […]

    / Jul 18, 2011 at 5:01 PM
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    Bernie Madoff Feels Like A Piñata

    When one is serving a 150 year sentence for running a massive Ponzi scheme, he tends to find himself with time on his hands to think about things. Take Bernie Madoff, for example. He has a job in the joint (working in the commissary) and he gets in daily walks on the track but other […]

    / Jun 28, 2011 at 2:07 PM
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    Bernie Madoff’s Underwear, Ass Sell At Auction

    Over the weekend, the US Marshals service held yet another auction of Bernie Madoff’s stuff, with the proceeds going to victims of the Ponz Master’s scheme. Previous items bought by bidders have included Bernie’s prized collection of mini-bar booze, his marital bed, and his belly button ring. This time, someone got a deal on his […]

    / Jun 6, 2011 at 12:38 PM
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    Mets Fans Can Thank Bernie Madoff For Their 2000 NL Championship

    Oddly, the Ponz Master hasn’t reminded anyone of this fact during his “Legitimate Years” tour but no matter- you’re welcome.

    / May 27, 2011 at 10:24 AM
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    Bernie Madoff Is Fairly Confident His Friends/Investors Will Forgive Him, If They Can Get Over Themselves

    For the latest issue of the New Yorker, Jeffrey Toobin explores the relationship between Bernie Madoff and Fred Wilpon, chairman and chief executive of the Mets and a victim of Madoff’s Ponzi scheme, which resulted in Wilpon (and the baseball team) getting, how to put this? Fucked. As his new project while in the joint […]

    / May 23, 2011 at 2:09 PM
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    Bernie Madoff’s Mini-Booze Turns Nice Little Profit

    The wine and alcohol collection amassed by Madoff was auctioned off Wednesday, fetching staggering prices for rather mundane lots. The proceeds will go to victims of his decades-long fraud. Some examples: Four airline-size bottles of alcohol (Smirnoff vodka, Bombay gin and Grand Marnier liqueur): sold for $300 (Estimated value: $10 to $20). [WSJ, earlier]

    / May 19, 2011 at 1:39 PM
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    Anyone Want To Hazard A Guess As To The Madoff ‘Mystery’ Liquor Being Auctioned Off?

    This afternoon, the US Marshals Service will hold yet another auction of Bernie Madoff’s stuff, with proceeds going to the victims of the Ponzi scheme. Today’s lots are comprised of the liquor left behind by the Ponz Master. As previously mentioned, one lucky bidder will take home Bernie’s prized collection of low-grade mini-bar booze (including […]

    / May 18, 2011 at 3:02 PM
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    Bernie Madoff: Big Fan Of Mini-Bar Booze

    In the market for some tiny bottles of low-grade vodka touched by a Ponzi scheme? Today’s your lucky day.

    / May 12, 2011 at 10:26 AM
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    Overseeing The Liquidation Of A Ponzi Scheme Almost As Lucrative As Running A Ponzi Scheme

    Irving Picard wants $43.2 million for the last four months of work on the Madoff file.

    / Apr 19, 2011 at 1:45 PM
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    Bernie Madoff Has A Dream

    The Legitimate Years, Part 2.

    / Apr 8, 2011 at 3:43 PM
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    Securities And Exchange Commission Provided Bernie Madoff With Some Much Needed Comedic Relief

    “In 2002 I had a contact with the SEC, who were concerned that I was front-running,” he recalls, referring to the practice of using insider information to inform trades. “I started laughing to myself – I knew I wasn’t because I wasn’t doing the trades.” [FT]

    / Apr 8, 2011 at 3:03 PM
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    Bernie Madoff: JPMorgan, UBS And HSBC ‘Are Going To Have Big Problems’

    As he’s got time on his hands and there’s something cathartic about letting it all out, Bernie Madoff’s been on a little media tour of late (which will culminate with an appearance on Jerry Springer in a paternity episode you don’t want to miss). His last stop was at New York, where Berns told reporter […]

    / Apr 7, 2011 at 3:07 PM
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    Bernie Madoff Doesn’t Think Much Of Dodd-Frank

    [Madoff] sees himself at this stage as a kind of truth-teller. He has disdain not only for the industry but for the regulators. “The SEC,” he says, “looks terrible in this thing.” And he doesn’t see himself as the only guilty party on Wall Street. “It’s unbelievable, Goldman … no one has any criminal convictions. […]

    / Feb 28, 2011 at 2:47 PM

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