Whether the trustee in the King Ponz incident, Irving Picard, wants to chalk it up to not successfully carrying the 1 in a couple of spots or trying to put a dollar value on pain and suffering, the total amount of losses suffered by Bernie's former flock just went up to $18 billion. But help is on the way in the form of an additional $2 billion Jeffry Picower will be kicking in. It turns out Picower just so happened to be in the right place at the right time frequently enough to pocket $7.2 billion from his investments with the head of the Butner Prison Investment Club. Some, though, have a different word for his incredible streak of luck.
The trustee has alleged that Mr. Picower directed the Madoff firm to credit specific gains to Mr. Picower's accounts, including gains that would be applied to prior months and years. The trustee's filings say these actions suggest Mr. Picower was complicit in the fraud.
Mr. Picower, who has denied many of the trustee's allegations and said he had no knowledge of fraud, is among several Madoff investors and associates who are being investigated by criminal prosecutors in Manhattan, according to people familiar with the matter