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July 25, 2016 / 19 Tammuz, 5776

Posts Tagged ‘Bernard Madoff’

Many Madoff Victims to Get Everything They Lost

Wednesday, October 21st, 2015

(JNi.media) A list of 1,264 accounts out of a total of 2,227, more than half of all of swindler Bernard Madoff’s victims who invested up to $1.161 million “will get it back,” as a result of a new bankruptcy filing Tuesday morning, Stephen Harbeck, president and CEO of the Securities Investors Protection Corp., told NBC News.

Madoff pleaded guilty in March 2009 to operating a ponzi scheme involving some $65 billion through his investment firm. He is serving a 150-year prison sentence. His clients included elderly Jews, Jewish philanthropic organizations, and public figures like Nobel laureate Elie Wiesel.

Court-appointed trustee Irving Picard, who has been seeking out the missing funds for Madoff’s victims for close to seven years, asked the US Bankruptcy Court in New York on Tuesday for permission to return another $1.5 billion to investors, in addition to the $7.6 billion returned to date. If the judge approves, victims who lost up to $1,161,193.87 will receive back their principal investment. Those who lost more would be paid 57 cents on the dollar, which is far more than Ponzi scheme victims ever make.

In a press release, Picard said the proposed distribution will bring the total amount already returned to investors to about $9.1 billion, out of $17.5 billion in allowable claims. The trustee has recovered or reached deals to recover about $10.9 billion since the fraud was revealed in December 2008.

JNi.Media

Five Madoff Employees Found Guilty in Ponzi Scheme

Tuesday, March 25th, 2014

A federal jury Monday found five former employees of Bernard Madoff guilty of knowingly being involved in the biggest Ponzi scheme in history and rejected their claims that they were just following orders.

The defendants’ testified that Madoff was the only one who knew of the swindle, but assistant U.S. attorney John T. Zach had told the jurors, “There’s really no dispute here that there was a massive criminal conspiracy” and that “the defendants knew that fraud was going on at Madoff Securities.”

Sentences will be handed down later, but it is certain that the five men and women will be joining Madoff by moving their residence to a prison cell.

One of the key testimonies on behalf of the prosecution was by Frank DiPascali Jr., who pleaded guilty in 2009 and has been cooperating with federal prosecutors and who told the jury that  a fake ledger of securities trades was written up to show an auditor.

Madoff’s senior staffers kept a special set of books for the Securities and  Exchange Commission.

Lawyers for the defendants questioned DiPascalis veracity and claimed his testimony was based on his desire to reduce his own jail sentence.

The defendants’ material wealth blinded them from simply quitting the swindle that robbed institutions, such as Yeshiva University, and thousands of people of millions of dollars.

Daniel Bonventre, 67, New York, N.Y., received hundreds of thousands of dollars in personal expenses and bought a New Jersey beach home.

Annette Bongiorno, 65, North Hills, N.Y., bought expensive homes in New York and Florida and Bentley car.

JoAnn Crupi, 52, Westfield, N.J., bought a vacation home on the New Jersey shore and also charged personal expense to Madoff Securities.

Jerome O’Hara, 50, Malverne, N.Y. and George Perez, 48, East Brunswick, N.J., objected to Madoff about having to change records and delete records and said they would not follow such orders in the future. However, a pay raise solved the problem.

Jewish Press Staff

Madoff Says His Scheme Was Not Betrayal of Jews

Thursday, March 20th, 2014

Ponzi schemer Bernie Madoff said in a prison interview that he does not feel he “betrayed the Jews.”

Madoff, 70, is serving a 150-year sentence at the medium-security federal prison in Butner, N.C., for a scheme believed to be the largest of its kind in U.S. history — one that affected a disproportionate number of Jewish individuals and organizations.

“Religion had nothing to do with it,” Madoff told Politico in an interview published Thursday.

“I don’t feel that I betrayed the Jews, I betrayed people. I betrayed people that put trust in me — certainly the Jewish community. I’ve made more money for Jewish people and charities than I’ve lost.”

Madoff told Politico that he attempted to recover money for his victims, and it has largely gone unacknowledged.

He said the information he shared with Irving Picard, the trustee charged with overseeing the recovery and distribution of money lost in the Ponzi scheme, has been critical to Picard’s ability to collect the money.

“Everybody thinks the worst of me,” Madoff said. “The only thing I’m happy about is I was able to help people recover.”

The investment advice he offers is not to invest in the stock market.

Madoff, who sees a prison psychiatrist once a week, said he has “nothing to repent for. I already knew what I did was wrong.”

He also said, “I don’t believe I’m a bad person.”

Madoff said the loss of his family, who have had nearly nothing to do with him since the scheme became public, is “more punishment than being incarcerated.” His son Mark committed suicide in December 2010 at 46.

He said he suffers from kidney disease and not cancer, as has been reported, and takes about 14 medications, which he did not do before entering prison. Madoff had a heart attack over the winter; and a stent was inserted to open a blocked artery.

JTA

Madoff Recovering from Heart Attack

Thursday, January 23rd, 2014

Bernard Madoff suffered a heart attack in prison last month and was hospitalized, CNBC revealed Wednesday after receiving an email from the 75-year-old Ponzi scheme rip-off artist. Madoff also is suffering from stage four kidney disease.

He former stockbroker wrote that he spent most of last month in the Duke University Medical Center and that he now is back in his Butner, N.C. prison, where he was sentenced to 150 years.

Madoff victim Norma Hill, 73, who had $2 million stolen from her, told the New York Daily News on Wednesday. “I don’t wish any ill on people. . . . I don’t like to hear of anybody being sick. But I don’t have any real sympathy for him.”

His wife Sondra, 80, was quoted as saying, “I care as much about him as he cared about us.”

Jewish Press News Briefs

JP Morgan to Pay $1.7 Billion to Madoff Fraud Victims

Tuesday, January 7th, 2014

J.P. Morgan Chase will pay $1.7 billion to victims of the Bernard Madoff Ponzi fraud scheme, according to deal announced by the Justice Department’s prosecutors, who agreed to delay criminal charges against the bank.

The financial institution is charged with violating the Bank Secrecy Act, and charges will be delayed for two years pending the payments and changes in the bank’s policies to stop prevent money laundering, which is how Madoff got away with his fraud until finally getting caught.

Madoff is serving a sentence of 150 years in prison for raking billions of dollars from investor’s accounts. One of those hardest hit was yeshiva University.

The Wall Street Journal reported Tuesday that the bank failed to send U.S. regulators a formal report on Madoff’s activities even though it had informed Britain in 2008 that Madoff’s returns on investments were “too good to be true.”

Jewish Press News Briefs

Report: At Least 18 Jewish Groups Reported ‘Diverted’ Funds

Tuesday, October 29th, 2013

At least 18 Jewish non-profit groups and non-profit groups that support Israeli institutions have notified tax authorities of likely illegal “diversions” of funds in the past five years.

The Washington Post on Sunday published its review of more than 1,000 non-profit organizations that have reported such anomalies since 2008, when the Internal Revenue Service began requiring the reporting of “diversions” of over $250,000 or 5 percent of a group’s gross receipts and assets.

Most such reporting is related to fraud, although a small number have to do with “financial restructurings, mergers and other types of financial losses” that are not illegal.

A JTA review of a handful of states with large Jewish populations turned up 18 Jewish non-profits and non-profits that support Israeli institutions recording diversions. The most widely-known losses were the widely-known fraudulent claims in the Conference on Jewish Material Claims Against Germany and the $95 million Yeshiva University’s loss from scams associated with Ponzi schemer Bernard Madoff,

Other cases include the  American Friends of the Tel Aviv Museum of Art reported, which reported in 2009 that “certain works of art were stolen or destroyed by fire”; The Jewish Community Center of Dutchess County, N.Y., which reported in 2010 that its bookkeeper had embezzled funds; and the Advancing Women Professionals and The Jewish Community Inc., which reported that an independent contractor in 2010 and 2011 had diverted $62,000 in funds.

JTA

FBI Arrested Peter Madoff

Saturday, June 30th, 2012

Peter Madoff, the younger brother of jailed Ponzi scheme operator Bernard Madoff, has been taken into custody by the FBI.

Peter Madoff, 66, surrendered himself Friday morning at his lawyer’s office in midtown Manhattan ahead of an expected guilty plea to criminal charges related to the Ponzi scheme, according to the Wall Street Journal.

He is the eighth person to plead guilty to criminal charges in the government’s investigation into the collapse of Bernard L. Madoff Investment Securities since December 2008. Numerous Jewish foundations and individuals had invested with the firm. Among the victims were Hadassah, the American Jewish Congress and Nobel laureate Elie Wiesel.

The former chief compliance officer is expected to plead guilty to falsifying the records of an investment adviser, and conspiracy to commit securities fraud, make false filings and commit other crimes. He has agreed to serve 10-year-prison term and forfeit all of his assets, the Wall Street Journal reported.

Bernard Madoff is serving a 150-year sentence in a North Carolina federal prison for crimes associated with the Ponzi scheme.

Earlier this week former Madoff money manager J. Ezra Merkin agreed to turn over $405 million to duped investors in the scheme. That was the first settlement resulting from a government action against Merkin.

JTA

Printed from: http://www.jewishpress.com/news/breaking-news/fbi-arrested-peter-madoff/2012/06/30/

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