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Madoff Exec: "The situation is obviously fluid"

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February 24, 2009
Dear clients and valued partners,
I wanted to give you a brief update on the status regarding the sale of our market making operations. We have continued to make significant progress working with Lazard Frères &Co. LLC and are happy to report that a sale appears in reach. I can not release any of the details until the trustee files an application with the bankruptcy court seeking approval of a proposed sale, but I am encouraged that we should have new ownership in place shortly. All of the employees critical to our market making operations are still on the payroll, are supporting the sale process, and are excited about the prospect of getting back to business.

I would ask for your continued patience and that you, to the extent possible, leave existing connectivity infrastructure in place for now.
While the situation is obviously fluid, the plan is for the buyer to take over the existing operation in our current location. So, existing connections and infrastructure would remain functional.
I hope to have an official announcement for you soon.
If you have any questions please contact me at [redacted].
Larry [Birch, long time employee of Madoff and close friend of Andy]


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]