Just Stop Talking

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Updated:: Jan 14, 2019
Original:: Dec 23, 2008

Here's a clip of the investigative journalism team at Fox Business discussing footage of one of its reporters and a camera crew staking out Bernie Madoff's accountant David Friehling's house, during which Friehling's son dumps water on the network's van, and later, as DF files a complaint against Fox with the Clarkstown, NY police department. Anyway, from the b-roll, it looks like the accountant is putting up his office space for rent, so if you know anyone looking for a place, get in touch. 845-367-2247.

Bernie Madoff's Accountant Goes On The Attack [Cityfile]

News

As you may have heard, earlier today, people working in 2 World Financial Center were evacuated from the building after a suspicious package was flagged by security. Initial reports claimed it contained a grenade; obviously this was cause for alarm and would have continued to be had the NYPD determined it to be an actual grenade and not a "grenade-like novelty item," mounted on a plaque with a sign that says "Complaint Dept. Pull Pin." Now that it's clear everyone is safe (and at least mildly buzzed), a few questions need answering. 1. Who sent this thing? Was it: a) A person whose sense of humor involves putting something like the above (or a sign that reads "I can only please one person per day. Today isn't your day...and tomorrow don't look good either") on her desk. b) An idiot friend of someone who works in the building. c) An rival bank trying to disrupt Nomura trading d) other 2. Assuming the item was purchased by someone working in the building, when do you think it dawned on him or her that they were responsible for having the building evacuated? 3. What will the consequences for the sender be, legal and professional? Senior Jailhouse Correspondent Matt puts the probability of prison time at 1.37 percent.

News

As some of you may recall, back in March, Highland Capital Management founder and CEO James Dondero testified that he is "insolvent under Texas family law, if not according to normal accounting rules," despite a 2010 tax return showing his adjusted gross income that year to be in excess of $36 million. The reason his finances were in question was because Dondero filed for divorce in September, and how much he owes his wife Becky is currently in dispute. Becky is "seeking enforcement of a prenuptial agreement guaranteeing her half of the couple’s community property, capped at $5 million," plus "spousal support and interim attorney fees." James, perhaps you can glean, is hoping it will be less than that and perhaps even nothing. One thing that really didn't help? Patrick Daugherty, a former senior portfolio manager at Highland who quit in October, testified that he met with James Dondero for drinks last month. “He told me his plan was to get his net worth down and pay her as little as possible,” said Daugherty, who was called to the stand by Becky Dondero. That testimony was given on March 28th. On April 11, this happened: Highland Capital Management, the $20 billion hedge fund and private equity firm based in Dallas, has launched a lawsuit that calls its former private equity investing chief a “megalomaniacal” manager who engaged in “abusive tirades” that “dehumanized employees.” Patrick Daugherty is the former head of stressed special situations and private equity at Highland Capital Management, where he was responsible for $8 billion of assets until he resigned in September 2011. Known as a blunt-speaking Texan, Daugherty has served on the board of Metro-Goldwyn-Mayer and as chairman of companies like Cornerstone Health Group. According to a 14-page complaint Highland filed in Texas state court in Dallas earlier in April, Daugherty has been paid in excess of $26 million while at the firm, but voluntarily resigned after “Highland refused to accede to his unacceptable ultimatums and megalomaniacal demands regarding compensation.” The lawsuit claims that Daugherty was “belligerent to peers” and that Highland employees complained and even quit after Daugherty publicly berated them as “‘f—ing idiots’” and disparaged them using other vulgarities. Highland, which has a reputation in the investment community for using hard-hitting tactics, pulls no punches in a lawsuit that at times can appear cruel. It claims that Daugherty’s tenure at Highland was characterized by extreme behavior and his performance diminished over the years as he “became increasingly unmanageable, erratic, and insubordinate.” It didn't have to be this way, Patrick! $20 Billion Highland Capital Calls Former Private Equity Chief "Megalomaniacal" [Forbes]

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