Kingate Management

Last updated

Kingate Management
Type Hedge fund
Headquarters
Hamilton
,
Bermuda

Kingate Management is a Hamilton, Bermuda hedge fund. [1] It was a feeder fund into the securities firm of Bernie Madoff, as part of the Madoff investment scandal.

Contents

History

Kingate Management and Tremont Capital Management set up Kingate Global Fund Ltd. (KING) as a joint venture. [2] [3] [4] [5] It charged an initial fee of 5%, and then 1.5% of assets per year. [6] It was one of the largest feeder funds of Bernie Madoff, and raised $3.5 billion for Madoff starting in 1994. [2] [7] It was overseen by FIM Advisers LLP, a London firm. [2]

The fund lost all of its assets in the Madoff Ponzi scheme. [6]

In September 2019 the Joint Liquidators of Kingate Global Fund and Kingate Euro Fund announced that the High Court of the Virgin Islands approved a global settlement with Irving Picard, as trustee for the liquidation of Bernard L. Madoff Investment Securities. [8] The approval followed the approval by the US Bankruptcy Court for the Southern District of New York, and subject to approval by the Supreme Court of Bermuda in an October 2019 hearing, the parties agreed to a mutual release of all claims. [8]

See also

Related Research Articles

Bernie Madoff American fraudster

Bernard Lawrence Madoff was an American fraudster and financier who ran the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the NASDAQ stock exchange. He advanced the proliferation of electronic trading platforms and the concept of payment for order flow, which has been described as a "legal kickback".

Ruth Madoff is the widow of Bernie Madoff, the convicted American financial fraudster who served a prison sentence for a criminal financial scheme until his death in April 2021. After her husband's arrest for his fraud, she and her husband attempted suicide in 2008. While she had $70 million in assets in her name, after her husband was imprisoned, she was stripped of all of her money other than $1–2 million, by the government and by the trustee for her husband's firm, Irving Picard.

Jacob Ezra Merkin is an American investor, hedge fund manager and philanthropist. He had been a fund manager and capital raiser until 2008 when one of the funds in Gabriel Capital LP, his $5 billion group of hedge funds became insolvent because a large portion of its assets was invested with the convicted Ponzi scheme operator Bernard Madoff. The fallout from his investment with Madoff has been extensive. He navigated a series of lawsuits without a finding of fraud or knowledge of the scheme, but agreed to repay any fees earned from the investment in Madoff historically. He had to resign a series of positions including his role as non-executive chairman of GMAC.

Sonja Kohn is an Austrian banker.

Fairfield Greenwich Group is an investment firm founded in 1983 in New York City. The firm had among the largest exposures to the Bernard Madoff fraud.

Madoff investment scandal Investment scandal discovered in 2008

The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008. In December of that year, Bernie Madoff, the former NASDAQ chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC, admitted that the wealth management arm of his business was an elaborate multi-billion-dollar Ponzi scheme.

Participants in the Madoff investment scandal

Participants in the Madoff investment scandal included employees of Bernard Madoff's investment firm with specific knowledge of the Ponzi scheme, a three-person accounting firm that assembled his reports, and a network of feeder funds that invested their clients' money with Madoff while collecting significant fees. Madoff avoided most direct financial scrutiny by accepting investments only through these feeder funds, while obtaining false auditing statements for his firm. The liquidation trustee of Madoff's firm has implicated managers of the feeder funds for ignoring signs of Madoff's deception. Although Madoff claimed to have executed the scheme alone, subsequent investigation has shown that he was assisted by a small group of close associates, as well as the feeders' self-interested indifference to the source of his investment returns.

Recovery of funds from the Madoff investment scandal has been underway since the scandal broke in December 2008. That month, recovery trustee Irving Picard received funds from the Bank of New York account where Bernard Madoff held new investments into his Ponzi scheme. As it has been concluded that no legitimate investments were made on the investors' behalf for at least the last 12 years of operation, recovery has proceeded on a "money in/money out" basis. Investors are entitled to receive no more than the nominal cash amounts that they paid in and did not subsequently withdraw, without regard to inflation, interest, opportunity cost or the false statements that Madoff provided them. Those statements combined to a total balance of approximately $64 billion, while the admitted claims amount to $18 billion. As of January 2021, the trustee had recovered $14.4 billion toward these claims through legal action against Madoff associates, feeder funds and beneficiaries of the scheme, and had made twelve distributions to investors.

Stanley Chais

Stanley Chais was an American investment advisor, money manager, and philanthropist. He operated "feeder funds" which collected money for funds related to the Madoff investment scandal. The widow, family, and estate of Chais settled with Madoff trustee Irving Picard in 2016 for $277 million.

Thema International Fund PLC, based in Dublin, Ireland, is a Dublin-listed, Undertakings for Collective Investment in Transferable Securities (UCITS) III-certified, open-end fund incorporated in Ireland, which was launched in December 1996. It created only one sub-fund, the Thema Fund. The fund had a minimum investment requirement of $50,000.

Ascot Partners is a hedge fund that was a feeder fund to Bernie Madoff.

Access International Advisors and Marketers, a Securities and Exchange Commission-registered investment advisor and a hedge fund of funds, was a research analyst investment agency that specialized in managing hedged and structured investment portfolios that involve commercial physical and biological research. It was a feeder fund into the securities firm of Bernie Madoff, as part of the Madoff investment scandal.

Tremont Group Holdings, Inc., a Delaware corporation headquartered in Rye, New York, is a hedge fund that was a feeder fund to Bernard Madoff's investment advisory firm in the Madoff investment scandal. It was the second-largest feeder fund to Madoff's firm, after Fairfield Greenwich, and received fees of 2% of assets for doing so.

Shana Diane Madoff, sometimes referred to as Shana Madoff Skoller Swanson, is an American former attorney who is now a yoga teacher.

Eric J. Swanson is an American lawyer who worked at the U.S. Securities and Exchange Commission (SEC) and dated and eventually married the niece of Bernard Madoff while the SEC was investigating Madoff's investment firm for what was eventually revealed to be a massive Ponzi scheme. Swanson is currently the Senior Vice President, General Counsel, and Secretary of BATS Global Markets, the third-largest stock exchange in the United States.

Aurelia Finance SA was a private bank and fund-management company in Geneva, Switzerland that was set up as a feeder fund to Bernie Madoff's illegal Ponzi scheme.

Defender Limited is an investment fund. It was incorporated in the British Virgin Islands in 2007. Defender funneled clients' funds to Bernard Madoff's firm as part of a Ponzi scheme run by Madoff. Madoff was arrested in December 2008, and pleaded guilty to fraud in 2009. He is serving a 150-year prison term.

Sterling Equities

Sterling Equities in Great Neck, New York, is a diversified, family-run group of companies whose portfolio consists primarily of holdings in real estate, sports, and media in the New York area. These include the New York Mets, the Brooklyn Cyclones, SportsNet New York, the New York Excelsior, Sterling Project Development, and a number of real estate investment portfolios and real estate services businesses. The firm became embroiled in the Bernie Madoff Scandal exposing a relationship between Sterling Equities partners and Bernie Madoff spanning 20 years. The partners eventually settled a billion dollar suit with the Madoff Trustee, Irving Picard, for $161 million.

Genevalor Benbassat & Cie is an asset manager located in Geneva, Switzerland. The firm set up five European feeder funds that invested almost $2 billion into Bernie Madoff's criminal Ponzi scheme.

References

  1. ↑ Deborah Hart Strober; Gerald Strober; Gerald S. Strober (2009). Catastrophe: The Story of Bernard L. Madoff, the Man Who Swindled the World. ISBN   9781597776400 . Retrieved February 9, 2013.
  2. 1 2 3 Erin Arvedlund (August 11, 2009). Too Good to Be True: The Rise and Fall of Bernie Madoff. ISBN   9781101137789 . Retrieved February 9, 2013.
  3. ↑ Papaioannou, Michael G.; Choi, Jay J. (2009). Credit, Currency Or Deratives: Instruments of Global Financial Stability Or Crisis?. ISBN   9781849506014 . Retrieved February 9, 2013.
  4. ↑ David E. Y. Sarna (2010). History of Greed: Financial Fraud from Tulip Mania to Bernie Madoff. ISBN   9780470877708 . Retrieved February 9, 2013.
  5. ↑ Papaioannou, Michael G.; Choi, Jay J. (2009). Credit, Currency Or Deratives: Instruments of Global Financial Stability Or Crisis?. ISBN   9781849506021 . Retrieved February 9, 2013.
  6. 1 2 Monty Agarwal (September 11, 2009). The Future of Hedge Fund Investing: A Regulatory and Structural Solution for a Fallen Industry. ISBN   9780470557297 . Retrieved February 9, 2013.
  7. ↑ Lionel S. Lewis (2012). Con Game: Bernard Madoff and His Victims . Transaction Publishers. p.  43. ISBN   9781412846097 . Retrieved February 9, 2013. kingate management.
  8. 1 2 "Liquidators of Kingate Funds Announce Key Court Approval of Settlement with Madoff Trustee Irving Picard".
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.