Related Research Articles
Bernard Lawrence Madoff was an American financial criminal and financier who was the admitted mastermind of the largest known Ponzi scheme in history, worth an estimated $65 billion. He was at one time chairman of the Nasdaq stock exchange. Madoff's firm had two basic units: a stock brokerage and an asset management business; the Ponzi scheme was centered in the asset management business.
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.
Harry M. Markopolos is an American former securities industry executive and a forensic accounting and financial fraud investigator.
Sonja Kohn is an Austrian banker.
David G. Friehling is an American accountant who was arrested and charged in March 2009 for his role in the Madoff investment scandal. He subsequently pleaded guilty to rubber-stamping Bernard Madoff's filings with regulators rather than fully reviewing them. His role in covering up Madoff's massive Ponzi scheme makes it the largest accounting fraud in history.
Robert M. Jaffe is an American stockbroker. He was a long-time associate of Ponzi schemer Bernard Madoff and promoted Madoff's fund to wealthy investors in Massachusetts and Florida.
Carl J. Shapiro was an American businessman and philanthropist. In 1939 he founded Kay Windsor, Inc. in New Bedford, Massachusetts, and built it into one of the largest women's clothing companies in the country. He was its president and chairman of the board and was director of VF Corporation, which acquired Kay Windsor in 1971; he retired five years later.
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.
Cohmad Securities was a US company whose main business was to introduce investors to the Bernard Madoff investment company for which it received commission based on the amount invested. The company, whose name combines “Cohn” and “Madoff,” was founded in 1985 by Bernard Madoff and Maurice Cohn, Madoff’s friend and former neighbor. Its office was located at the same address as Madoff's firm, and it employed between 10 and 20 employees with annual sales between $1M and $5M.
Frank DiPascali Jr. was an American fraudster and financier who was a key lieutenant of Bernie Madoff for three decades. He referred to himself as the company's "director of options trading" and as "chief financial officer". For a number of years, he played a key part in the daily operation of the Madoff investment scandal, later recounting how he helped manipulate billions of dollars in account statements so clients would believe that they were creating wealth for them.
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 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.
The 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 $19.5 billion. As of March 2023, the trustee had recovered $14.6 billion toward these claims through legal action against Madoff associates, feeder funds and beneficiaries of the scheme, and had made fourteen distributions to investors. Action by the Department of Justice has recovered an additional $4 billion.
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.
Kingate Management is a Hamilton, Bermuda hedge fund. 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 group with a subsidiary that advised a feeder fund to Bernard Madoff's investment advisory firm in the Madoff investment scandal. This was the second-largest feeder fund to Madoff's firm due to the group having had a long professional relationship with him as Chairman of the NASD, the precursor to FINRA, and as the largest options market maker on the NASDAQ.The firm was one of the largest hedge fund consultants and advisors globally during the seminal 1990's period and pioneered a number of ground breaking products such as the CSFB Tremont Hedge Fund Index, specialized products and venues for hedge fund investment; structured products, insurance entities, new markets and jurisdictions including the first institutional fund of hedge funds in Korea and the foundation of The Bermuda Stock exchange. Prominent board members and shareholders included; Mario Gabelli of Gabelli Asset Management, Leon Cooperman of Omega Advisors and Arthur Samberg of Pequot Capital Management. Tremont was among the first investors and/or involved in the launch or restructuring of numerous legendary funds such as; S.A.C., Quantum and AQR.
Shana Diane Madoff, sometimes referred to as Shana Madoff Skoller Swanson, is an American former attorney who is now a yoga teacher.
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.
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
- ↑ Bray, Chad (March 12, 2009). "Madoff Pleads Guilty to Massive Fraud". The Wall Street Journal . Dow Jones, Inc. Retrieved March 12, 2009.
- ↑ Safer, Morley (September 27, 2009). "The Madoff Scam: Meet The Liquidator". 60 Minutes . CBS News. pp. 1–4. Retrieved September 28, 2009.
- ↑ Affidavit of Mailing, SIPC v. Bernard L. Madoff Investment Securities LLC, No. 08-01789 (Bankr. S.D.N.Y. Feb. 4, 2009).
- ↑ "Madoff Client List" (PDF). The Wall Street Journal. Retrieved March 1, 2013.
- ↑ Searcey, Dionne; Efrati, Amir (February 6, 2009). "Madoff Clients Exposed". The Wall Street Journal.
- ↑ "Madoff Client List" (PDF). The Wall Street Journal.
- ↑ Chew, Robert (February 5, 2009). "The Bernie Madoff Client List Is Made Public". Time. Archived from the original on February 7, 2009. Retrieved May 8, 2010.
- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 "Madoff's Victim List". The Wall Street Journal. March 6, 2009. Retrieved March 1, 2013.
- ↑ Wakin, Daniel J. (May 21, 2009). "Madoff Loss Hits Art Aid for Young in Israel". The New York Times.
- ↑ Heath, Chris (May 1, 2009). "The Enduring Larry King". GQ. Retrieved February 2, 2021.
- ↑ Pressler, Jessica (December 30, 2008). "Madoff's Latest Victims: Kevin Bacon and Kyra Sedgwick". New York.
- ↑ "Hall of Famer Sandy Koufax among those swindled by Bernie Madoff". ESPN . Associated Press. February 4, 2009.
- ↑ The New York Times: "In a Romney Believer, Private Equity’s Risks and Rewards" by JULIE CRESWELL January 21, 2012
- ↑ "Dean Emeritus Lawrence Velvel". Massachusetts School of Law. Retrieved February 4, 2016.
- ↑ Efrati, Amir (March 24, 2009). "Couple's Dreams of Immortality at Death's Door, Thanks to Madoff: Artists Who Design Homes to Prolong Life Lost Their Life Savings; Undulating Floors" . Retrieved March 21, 2017.