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Madoff Client Jeffry Picower Netted $5 Billion—Likely More Than Madoff Himself

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posted on Jun, 24 2009 @ 04:52 AM
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Madoff Client Jeffry Picower Netted $5 Billion—Likely More Than Madoff Himself


www.propublica.org

It is rare these days to see Bernard Madoff’s name in print unaccompanied by the word “Ponzi.” Yet recent allegations raise the possibility of one key difference between Madoff’s crimes and those of legendary con artist Charles Ponzi. While Ponzi’s scam was under way, Ponzi himself was its biggest beneficiary. It now appears that the biggest winner in Madoff’s scheme may not have been Madoff at all, but a secretive businessman named Jeffry Picower.


Between December 1995 and December 2008, Picower and his family withdrew from their various Madoff accounts $5.1 billion more tha
(visit the link for the full news article)



[edit on 6/24/2009 by JacKatMtn]




posted on Jun, 24 2009 @ 04:52 AM
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I would find it hard to believe that Picower was unaware of Madoff's scheme, having routinely cashed in himself. While most of the investors lost, here's one person who obviously enjoyed huge gains from investing with Bernie....

Picower and their attorneys declined comment when the reporters called... though the article states that the attorney told the WSJ that the Picowers weren't complicit..

I guess they were just the lucky ones



www.propublica.org
(visit the link for the full news article)

[edit on 6/24/2009 by JacKatMtn]



posted on Jun, 24 2009 @ 08:16 AM
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For those interested you can get the pdf of the complaint here:


s3.amazonaws.com

...2. Jeffry Picower (“Picower”) was a beneficiary of this Ponzi scheme for more than
20 years. Since December 1995, he and the other Defendants collectively profited from this
scheme through the withdrawal of more than $6.7 billion dollars. The Trustee’s investigation to
date has revealed that at least five billion dollars of this amount was fictitious profit from the
Ponzi scheme. In other words, Defendants have received, at a minimum, more than five billion
dollars of other people’s money...



Companies associated with the Picowers pdf:


s3.amazonaws.com

Bernard L. Madoff Investment Securities, LLC
Summary of Defendants' Accounts Maintained with BLMIS
A/C# Account Name
Opening
Date
1P0019 Barbara Picower January 1, 1988
1C1006 Capital Growth Company January 1, 1988
1D0010 Decisions Incorporated January 1, 1988
1D0011 Decision Inc #2 January 1, 1992
1D0030 Decision Inc #3 January 1.....


and the transactions pdf:


s3.amazonaws.com

Bernard L. Madoff Investment Securities, LLC
Summary of Cash Transfers to Defendants
A/C# Account Name Date Transfer Amount
1C1006 Capital Growth Company 1/2/96 CHECK $ 53,500
1C1006 Capital Growth Company 4/1/96 CHECK 72,000
1C1006 Capital Growth Company 7/1/96 CHECK 52,500
1C1006 Capital Growth Company 10/1/96 CHECK...


It will be interesting to see if it is proved that the Picowers were in the know in regards to the Madoof scheme....



posted on Jun, 24 2009 @ 04:09 PM
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he's going after a lot of these folks. I read somewhere that he was even looking into Carl Shapiro, the first, and last, to invest in the fund. He's going after the feeders as well as some of the fund managers who invested with him. I think there were tons of folks who knew what was going on and they were loving every minute of it.

until the system came down of course.

I'll read the article tonight and see if I can find any new and interesting connections to dig into.

On a side note, my original coconspirator and my guess as to his link to the mafia, Jaffe, has been named in one of the investigations. He won't rat out his connections now if he didn't back in the 80's but it might be the first step towards breaking down all the players.



posted on Jun, 24 2009 @ 05:10 PM
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greedy people like them should be forced to pay back all the people they jacked and should be put in jail to work as a slave for the rest of their life in agony. all people who are like that, every one.



posted on Jun, 25 2009 @ 08:37 AM
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read the article and the concept of an "elite" group of investors with madoff means one of two things.

either this group consisted of even bigger morons or this group consisted of those in the know.

Personally, after my time with investors, listening to them defend the concept that madoff was legit until his stated start time of the early 90's (coincidentally timed to the same period where the feeder funds he operated with were deemed ponzi scams), I lean towards the belief that anyone who was with him knew something wasn't right and they turned a blind eye and went with the ignorance is bliss rule.

The claim that Picower called in his requested returns and Madoff backdated transactions to accomodate the returns makes me think Picower wasn't in on the ponzi itself but knew it was shady and was either "extorting" Bernie or Bernie was giving his select friends even better returns.

I'd like to see who else was in this elite group of investors as, it seems, they were treated even better than his father figures who he bilked for hundreds of millions.

Picower pulling more money out than Bernie doesn't sound so strange. If he was in on it, he was funnelling money back to Bernie somehow. Picower was a master of sheltering money for tax purposes. The reason Picard can't figure anything out is because Bernie's tax returns were probably rather legit. Big capital gains and dividends from his investments with his own funds (although I wouldn't be surprised if he didn't report his earnings) and then his earnings from outside his bogus fund - whatever that might be. If the money was funnelled out of his funds via another investor and then routed thru various accounts, offshore funds etc, back to Bernie in some hidden location, such as Gibralter, as suspected, nobody's ever know or find it.

I'm still curious as to why we haven't heard a word about Frank Dipiscale.



posted on Jun, 25 2009 @ 09:03 AM
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Originally posted by Crakeur
I'm still curious as to why we haven't heard a word about Frank Dipiscale.


According to this article, Frank is currently talking with the FEDS and could be the one who opens up the whole can of worms?


Cohmad, Stanley Chais Get Sued During Run Up To Madoff’s Sentencing

...Give it some time, but we can expect criminal proceedings to be brought against some of these folks at some point. The feds are currently leaning on Frank DiPascali, Madoff’s “ninja” deputy, to extract names and information about the operation, before swinging in and rounding everyone up. Piecing together the evidence is turning into a massive ballache, what with some of the records needing to be digitised from microfilm. Madoff’s propensity for filing non-electronic records can’t be helping either....



posted on Jun, 25 2009 @ 09:15 AM
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reply to post by JacKatMtn
 


on the contrary, the article says

The feds are currently leaning on Frank DiPascali


It says he's being leaned on, it doesn't say he's talking. From the very beginning, Frank, who was Bernie's right hand man, who was the only non-madoff in the blackbox office (other than the dozen or so women who were, basically, data entry drones) who was with him from day one, who grew up in a rather, um, connected neighborhood.....that guy.... has been tight lipped. They're leaning on him, as the article states, because they want to get him to talk. Not only does he know everything about the clients and the feeders, if anyone knows squat about the supposed mob ties it would be him, or Jaffe, and Jaffe will probably continue to keep quiet, as he did back in the 80's.



posted on Jun, 25 2009 @ 09:19 AM
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Ya know... when you really think about it, the only difference between AGI and Madoff is that AGI got a bailout while Madoff has to post bail.

Not saying that this kind of greed is excusable in any light, however I would suggest that it's an expected (integral?) part of the system itself.



posted on Jun, 25 2009 @ 09:34 AM
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reply to post by Crakeur
 


A little more on Frank...


money.cnn.com

...Now that fog may be about to lift. Fortune has learned that Frank DiPascali is trying to negotiate a plea deal with federal prosecutors in which, in exchange for a reduced sentence, he would divulge his encyclopedic knowledge of Madoff's scheme. And unlike his boss, DiPascali is willing to name names.

According to a person familiar with the matter, DiPascali has no evidence that other Madoff family members were participants in the fraud. However, he is prepared to testify that he manipulated phony returns on behalf of some key Madoff investors, including Frank Avellino, who used to run a so-called feeder fund, Jeffry Picower, whose foundation had to close as a result of Madoff-related losses, and others. If, for example, one of these special customers had large gains on other investments, he would tell DiPascali, who would fabricate a loss to reduce the tax bill. If true, that would mean these investors knew their returns were fishy. (Lawyers for Avellino and Picower declined to comment. Marc Mukasey, DiPascali's attorney, says, "We expect and encourage a thorough investigation.")...


I guess the negotiation continues...

You would think that the FEDS would be willing to give up alot to Frank in order to get enough info to start possible prosecution...

Maybe the info Frank has, is not enough to go forward?



posted on Jun, 25 2009 @ 09:44 AM
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reply to post by JacKatMtn
 


I stand corrected.



posted on Jun, 25 2009 @ 10:59 AM
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reply to post by Crakeur
 


No worries, it was my fault, I read the piece above and should have linked to that one as well previously....

It is interesting that they mention Picower as one of those who Frank has info about...

It also might be worth a look to see if any of Picowers companies in the pdf, have contributed to any political campaigns during that stretch of years for possible connections to local, state or national elected positions..

Anyone have a link to a site to search for contributions by companies?



posted on Jun, 25 2009 @ 12:21 PM
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reply to post by JacKatMtn
 


In a slight related twist, I have an appointment tonight with a client who is (was?) very good friends with the head of the Fairfield family (Noel) of funds and the family that runs them. He told a story, a while back, about how, around Thanksgiving last year, Noel was telling him how his fund investments were all getting crushed but, "thank god for Bernie Madoff," because he's keeping everything profitable.

Now, more than 6 months later, the funds this family ran are no longer theirs (sold I think), the family is suffering financially and they are part of the investigation into whether or not the feeder funds and their managers were involved.

So, was his bragging about Madoff keeping the funds afloat his being clueless or was he actually trying to entice my client, who has ties to lots of money (massive fund management company among them)?

Can't say but it does seem more like he was pitching the client than simply clueless to what was going on although I did see, in one of your linked articles, that all of these guys are going to claim cluelessness based on "if the SEC didn't see anything, how can we be at fault for missing the same things?"



posted on Jun, 30 2009 @ 08:06 AM
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reply to post by Crakeur
 


That does look a bit suspicious in hindsight...

Now that Madoff's sentence has been handed down... the AP is saying that 10 more people could be prosecuted...


AP Source: 10 more could be charged in Madoff scam

NEW YORK -- A person familiar with the investigation into disgraced financier Bernard Madoff (MAY'-dawf) says at least 10 more people are likely to be charged by the time the probe is complete.

The person tells The Associated Press they will face federal charges over the next few months. The person spoke on condition of anonymity because the investigation is ongoing.



I wonder if this has something to do with the FEDS negotiating with Frankie



posted on Jun, 30 2009 @ 08:49 AM
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reply to post by JacKatMtn
 


I heard that yesterday as well.

Another interesting bit of gossip. Bernie's clearly trying to distance himself from his wife. He apologized for lying to her all these years (yeah, that's believeable) and she said something about not knowing the man who was in jail blah blah blah. Well, now that she has been told her homes are all going to be sold in an effort to repay a pittance of the lost money, she is out apartment hunting. She was being turned away based on her last name so she started using Alpern, her maiden name. Still, nobody wants her in their building.

Nice to see the whole world hates you, on a daily basis.



posted on Jun, 30 2009 @ 09:33 AM
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reply to post by Crakeur
 


That's a crock, they are trying to protect the family and are trying to let Bernie be the fall guy...

Who would he be protecting? Bernie said he was sorry, but fails to give up the info that might help recover some of the illgotten gains to try and ease the pain of his error :shk:

I think it's because of his family's involvement, otherwise he could have given up something...

I did find this forbes piece which touches on the Picower issue...


Bernie's Gang: Who's Next To Go Down?

...What's especially curious is that in November 1999, Picower's accounts had a negative cash balance of $3.8 billion with Madoff Securities, which later grew to $6.3 billion according to the lawsuit. This is odd because no broker is supposed to allow a client to hold a negative account.

"Even more brazenly, one account combined outrageous returns with backdating that occurred before the account was even opened," charges Trustee Irving Picard. According to the suit, "There were 57 purported purchases of securities between Jan. 10 and Jan. 24, 2006, almost three months before the account was opened or funded."

If proved, these allegedly "backdated" trades would suggest that either the Picowers or their aides knew that Madoff was committing fraud. The suit charges that "Picower and the other defendants also knew or should have known that they were reaping the benefits of manipulated purported returns, false documents and fictitious profit."...






posted on Jun, 30 2009 @ 09:50 AM
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reply to post by JacKatMtn
 


Bernie's trying to protect the family, for sure. Question is, which "family?" Probably both.

I don't know how much money is left over for him to be hiding. Sure, he probably has some in Gibraltar or some other hard to access place but he probably spent most of it on the homes and the luxuries and kept enough to maintain a decent lifestyle and not some lavish life. Most con-men spend it all as they bring it in. Seldom do they save.

Also, he was doling money out to everyone. It's not like he took 50 billion and pocketed it. Picower took over 5 billion alone. Feeders and individual clients pulled money all the time. Hell, one of my clients received a check for $10,000 the day after he turned himself in. They bought homes, financed projects, funded charities etc. Bernie didn't keep it all. Then there's the hedge funds that ran fund of funds. They invest in, say, three funds. The rule is, generally, that the amount invested will never be too lopsided so, when Bernie's investment was up 15% and the other two were down 40% in late august, they started pulling money from Bernie to keep the others up and maintain that promised equal distribution of investments. It was a 4 billion dollar request from one hedge fund investment group that eventually did him in. He no longer had the funds to dole out.



posted on Jun, 30 2009 @ 02:45 PM
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reply to post by JacKatMtn
 


the local news is now reporting that up to 17 are expected to be indicted soon. Carl Shapiro is rumored to be on that list. Makes sense. First one in, last one to invest, he gave Bernie $250 million shortly before he turned himself in.



posted on Oct, 26 2009 @ 07:18 AM
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Bernard Madoff scheme's top beneficiary found dead

A Florida billionaire who was a top beneficiary of Bernard Madoff's $65bn (£40bn) Ponzi scheme has died, apparently by drowning in the swimming pool of his mansion in the exclusive seaside enclave of Palm Beach.

Jeffry Picower, 67, was found by his wife and housekeeper shortly after midday on Sunday. Emergency services were unable to revive him and he was pronounced dead at the Good Samaritan medical centre.

An accountant turned wealthy investor, Picower was a friend of Madoff's and was named in court papers as the biggest beneficiary of returns from the Wall Street fraudster's corrupt investment empire.


Accident?

How will this affect the attempts to reacquire some of the Madoff scam monies for those swindled..?



posted on Oct, 26 2009 @ 08:26 AM
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reply to post by JacKatMtn
 


one less person who will go to jail. They'll still go after the money and they'll make him out to be a party to the con.



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