The Daily Newsreports that former Madoff traders Reed Abdend and Richard Stahl have filed separate suits requesting $473,940 and $1.34 million in deferred compensation, respectively, from Bernie's boys Mark and Andy (pictured at left on one of their many fishing trips). For those of you thinking the Stahl character sounds familiar but can't quite place him, we're told that "Richard," now working at First New York Securities, was previously known on Bloomberg as "Rick," but wisely changed his name after the whole Ponzi thing. He also played football for Holy Cross as a tackle and is described as "a real hot head who always tried to physically intimidate people in the work place." Up until recently (let's peg it as December 2008) he apparently "kissed Mark and Andy's asses." Now, not so much!
Abdend, you'll recall, is the guy who got into a slapfest with Andy and his girlfriend Catherine outside a Chinese restaurant. If anyone here is looking to to hire a new employee who'll inject a little infamy-by-association into the shop, here's the cover letter Reed was circulating earlier this year (not sure if he's since landed a job, so act fast).
To Whom It May Concern:
I would like to take this opportunity to set the record straight regarding my position at Bernard L. Madoff Investment Securities. I am sure that you are aware that the firm no longer exists due to the fraudulent activities of the owner in a separate part of the business. My position in the firm was in the proprietary division on the 19th floor, which was separate in records, location, personal, and management. The employees in the market making and proprietary units are victims of this fraud.
From May of 2000 to October of 2006, I was an equity market maker who concurrently traded proprietarily in the firm's market making unit. When I was hired in May of 2000, the firm employed over 40 traders in the market making division. During my six years on this desk, Bernard L. Madoff eliminated virtually all of the traders from their market making business in an effort to become fully automated. By October of 2006, there were eight remaining market makers at the firm. At that time, I was one of three market makers that were offered the opportunity to manage a $25M long / short equity, options, and futures portfolio in the proprietary division.
My experience as a market maker was valuable because it taught me to drastically reduce my transaction costs with respect to stock specific liquidity and it also aided me in attaining a certain respect for the market and its complexities. As a portfolio manager, I vastly increased my understanding of risk management / hedging and I was successfully able to remain profitable in a multitude of volatile environments. In 2008 I was +8.4% on allocated capital, and +66% on utilized capital. I only hope that you can judge me based on my accomplishments and not on my association with my previous place of employment. I would sincerely appreciate the opportunity to speak with you in the near future.