Madoff

  • 18 Jun 2009 at 4:52 PM

Bernie’s Slightly More Legitimate Legacy Lives On In The Lipstick Building

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Lipstick Building.jpgThe part of the House of Ponz that wasn’t lying to people and stealing their money has a new keeper. Surge Trading is the new owner of Bernie’s market making business and their CEO is ready to lead the former Madoff-ites into the future- albeit from the same address.

“I am proud to be working with this team of seasoned, dedicated and client-focused specialists. We are looking forward to quickly beginning the business of trading on behalf of our clients, growing our service offerings, and becoming an industry-leading business.”

Madoff’s Market-Making Business Is Revived by Surge Trading [Bloomberg]

  • 08 Jun 2009 at 11:26 AM

Madoff Victims Try To Out Ponzi The Ponz Himself

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berniebuck.jpgIt appears as though one great fraud deserves another. A group of Madoff victims is taking a page out of Bernie’s book and asking a federal bankruptcy judge to reconsider the way their losses are being calculated. Their magic formula is one part backward logic, one part betting that a judicial system that awarded damages to somebody who lost their psychic powers can get taken to the cleaners one more time.

The customers say that, by law, they should be given credit for the full value of the securities shown on the last account statements they received before Mr. Madoff’s arrest in mid-December, even though they were bogus and none of the trades were ever made. According to court filings, those account balances add up to more than $64 billion.

Papa Ponzi would be proud.
Victims of Madoff Seek Claims Overhaul [NYT]

  • 06 May 2009 at 2:36 PM

Madoff Accountant Bienes Soul Searches: “God Wanted Us To Have This”

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That’s the answer Michael Bienes came up with when he paused one day to wonder if something was awry at Madoff Securities, which we’ll likely hear more on in the upcoming PBS investigation “The Madoff Affair,” airing next Tuesday. Also interviewed for the flick are Tremont founder Sandra Manzke, and Sherry Cohen, former assistant to Fairfield Greenwich founder Walter Noel, who’s probably going to take a moment to discuss how Wallie is a big fan of the for-pay-handies,* if we’re continuing with that theme.
*Hopefully including shout-outs for his favorite Fairfield county establishments.

  • 20 Jan 2009 at 12:36 PM

“Dear Shareholder, we are truly sorry that we have all been victimized.”

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Of course, we loved “Dear Shareholder” letters before Bernie Made-off was a twinkle in our pseudo-journalistic eyes, but he has certainly raised the bar. Consider the latest offerings from Gabriel Capital Group, overseeing the Merkin-managed Ariel Fund:

In light of the fraud’s devastating impact on our portfolio and, in particular, on our liquidity, we believe our only realistic option is to wind down Ariel Fund Limited and engage in an orderly disposition of its portfolio positions. The process will likely take several years to complete since many of the remaining assets are illiquid investments. We will distribute proceeds as the assets are realized, and in order to treat all shareholders fairly and equally, the Board of Directors has determined to suspend the determination of the net asset value of the shares and all redemption rights (including pending redemption requests).

Ariel Fund liquidation letter 12 19 08.pdf
Ariel Revised Financial Statements Dec 31 2007.pdf