SEC says Madoff associates new of scam

CNN:

Associates of convicted Wall Street swindler Bernard Madoff knew he was scamming his clients but joined in anyway because of the big money they could make, a securities investigator testified in a sworn affidavit for a Connecticut court.

The testimony by investigator Edward H. Seidle on Tuesday came as a Connecticut judge froze the funds of Madoff and several of his business associates as part of a lawsuit filed for members of a city's retirement fund who say they invested with companies linked to Madoff.

In his affidavit, Seidle said Madoff's associates -- specifically the so-called "feeder funds" that handled money for Fairfield, Connecticut's retirement plan -- should have known that he was cheating his clients.

"It is my opinion ... that [the funds and their principals] were all aware that Bernard L. Madoff was engaging in illegal conduct in connection with his purported money management operations and intentionally chose to participate and support Madoff's illegal conduct in order to reap enormous illicit financial benefits," he stated.

He named feeder funds Tremont Properties, Maxam Capital, their principals and their affiliates in the affidavit.

...

Those prevented from liquidating any assets by Superior Court Judge Arthur Hiller's order include Madoff's wife, his sons and his brother, Peter.

Similar freezes have been ordered by judges in other suits by the roughly 4,000 alleged victims of Madoff's $50 billion Ponzi scheme.

Seidle said the people who ran the funds appear to have intentionally ignored red flags about how Madoff worked that anyone with their level of expertise would have noticed.

...


I find the affidavit persuasive. It is difficult to beleive that these funds did any due diligence since almost any at all would have revealed the scam. They should have looked at what Madoff was allegedly investing in and contacted those entities to determine if he actually owned any securities. That would have revealed that Madoff was basically running a bucket shop where no securities were actually being purchased.

Comments

Post a Comment

Popular posts from this blog

Vote against Democrat boondoggle 'stimulus'

James Freeman: President Obama's $825 billion (and counting) "stimulus" is steamrolling through Congress. One group of conservative Republicans is betting that it will only worsen the country's economic plight. That's where the House Republican Study Committee comes in. "No Trillion Dollar Spending Spree" is the message from this conservative caucus. Led by its new chairman, Rep. Tom Price of Georgia, the RSC now counts more than 100 House Republicans among its members. Mr. Price calls the Democrats' proposal "the non-stimulus plan" and says it "simply won't work" because it offers no market incentives to create jobs. What the plan does offer are multibillion-dollar gifts to state governments, teachers unions, and the environmental lobby, with such gems as a $6 billion program to "weatherize modest-income homes." In contrast, Mr. Price and company have drawn up their own plan, the "Economic Recovery and Middle...
Read more

Obamagate, The Movie

WND: The Irish-born filmmaking couple Phelim McAleer and Ann McElhinny are known for their film  "Gosnell,"  which exposed the seamy underside of the abortion industry by turning transcripts and evidence from the trial of the Philadelphia abortionist Kermit Gosnell into a cinematic drama. Now, in yet another effort to counter a conventional narrative with first-hand evidence, they're about to release  "Obamagate: The Movie,"  showing how the Obama administration tried to take down Donald Trump.They turned gripping testimony from the 2014 Michael Brown case into a play, called  "Ferguson."   And lately they did the same with the infamous texts of FBI agent Peter Strzok and bureau lawyer Lisa Page in  "FBI Lovebirds: Undercovers,"  starring Dean Cain and Kristy Swanson. "We would be unemployed if the media did its job," McAleer told WND in an interview. "They're not reporting spin anymore," he said of the establ...
Read more

Generous Texans

From the Houston Chronicle: Texans let Ga. family keep possessions after eBay win The Georgia family were auctioning their possession to pay for medical expenses for two disabled children. A Texas couple bit $20,000 and told them to keep their stuff.
Read more