Posted on 12/26/2008 5:09:43 PM PST by FoxPro
Is the author of this complaint any relation to Madoff. They appear to have the same last name.
OOPs, that was “gave her a tip” NOT a “trip” in 2001
I was not talking about drug use on Wall St.!!!
I used to read Barron’s, recall the name, and I think she might have been cute.
The first line I've read that indicates that everyone associated with Madoff wasn't burned to the ground.
It was a ponzi scheme; the first investors who pulled their money out made money, just like in the original ponzi scheme.
The SEC knew about this.
The SEC is implicit in this.
And if that is the case, what good is it?
I posted link to Erin Arvedlund’s article in Barron’s from May 2001, but you have to be a subscriber to actually read the whole article:
http://www.freerepublic.com/focus/news/2154709/posts?page=1
It does sound like she had Madoff nailed or at least under a cloud of suspicion, if only the SEC had paid any attention.... were govt. bureaucrats protecting Madoff or were they lazy and ignorant, or did they simply think that such a private hedge fund for hedge fund managers was simply beyond their purview?
Hard to see how the SEC is worth a cup of warm spit, if so gigantic a fraud can be pointed out to them repeatedly yet they did NOTHING for so many years.
When any scandal comes to light, it's a good bet that both SEC and NASD (and probably the NY AG) had numerous complaints going back years.
And did nada.
I think it was his neice, that is.
Hedge fund fraud is squarely within their purview. That doesn't mean they pay it the attention they should.
Madoff was a broker-dealer. The SEC people like to pass the buck to someone else whenever they can. [They call it lack of resources, but you can argue that it's laziness]. When the complaint is about a broker-dealer, they want NASD, the brokers' so-called self-regulatory organization, to take responsibility.
You think NASD was going to regulate an insider like Madoff [a former chairman of NASDAQ]? Not likely.
Which hedge fund employs Chelsea?
At the link you provide, on the other hand, we are told that SEC investigators opened cases on companies that were being shorted, based upon tips from those who were shorting them; investigations that were opened without a second thought and that largely went nowhere, although naturally the stock value of the companies being investigated was decimated by the investigations.
One former SEC official interviewed by Deep Capture admits to having worked often with Elgindy. “I’d send his information up my up-line,” he says. “My superiors would tell me to open an investigation.” In most cases, the SEC never filed charges against the targeted companies
It looks like the SEC was doing more than "sleeping" on the job.
And I'm reminded of Sen. Chris Dodd, Chairman of the Senate Banking Committee, and his relationship with Angel Mozillo, and his status as "VIP Client" of his mortgage company.
See http://www.freerepublic.com/focus/f-news/2149804/posts - How Short-Sellers Almost Destroyed U.S. Banking [System] (by Cramer)
Unfortunately, discussion got sidetracked somewhat, as it usually does on these threads, into the "good vs evil" of and "banning" of shortselling, instead of simply potential of using it to do serious damage.
... and this FR keyword index "financialterrorism"
Sorry, anyone STUPID enough to give their family fortune to their golf buddy is an idiot and all the government regulation in the world will not protect them.
Tell it.
It's pretty sickening.
re: Which hedge fund employs Chelsea?
Guess what, folks, something “interesting” here — Chelsea Clinton’s hedge fund employer is Avenue Capital, which is known as a “vulture fund” for betting on bad times and buying up “distressed” debts and equities, etc.
Now first try to imagine one of the Bush daughters going to work for such an outfit without that angle being massively emphasized in countless media reports — I can’t recall anything being said about Chelsea except that she went to work for a “hedge fund” — no hint that it was an economic bottom-feeder that depends upon BAD economic times to do well..... most interesting.
Here is how the NY Times described the company and it’s head Marc Lasry (he sure is enthusiastic about failing companies — I wonder if there could be any connections with the “Deep Capture” stuff about helping companies to fail and then profiting from the mess??):
http://www.nytimes.com/2005/08/19/business/19vulture.html?_r=1
A World Where Down Means Up
Marc Lasry of Avenue Capital is in the business of buying distressed debt, and he expects the next 12 months to bring a great deal of opportunity.
By RIVA D. ATLAS
Published: August 19, 2005
Bad news is good news for Marc Lasry, one of the largest investors in the debt of bankrupt companies.
Yet the strong economy has not been cooperating, leaving bad news in short supply. Indeed, the number of bankrupt companies has been dwindling, as low interest rates make it easy for even weak businesses to obtain cheap financing. But Mr. Lasry and other like-minded investors are betting that their day is not too far off.
“Distress is around the corner,” said Mr. Lasry, a soft-spoken 45-year-old who oversees the Avenue Capital Group, which manages more than $7 billion invested in the United States, Europe and Asia.
He ticks off the potential catalysts for trouble: rising interest rates and oil prices; a mounting federal deficit and a low dollar; and a real estate bubble ready to burst.
Almost every comment blames the SEC.
Does the SEC actually regulate hedge funds?
Madoff’s Ponzi scheme is a hedge fund, correct?
Also, I suspect the SEC receives hundreds of “hot tip” memos like this each month.
I suspect most of those “hot tip” memos are written by people who hope to win a SEC bounty, or by people with an ax to grind, or by people who are mentally deranged.
I suspect only a few percent of those “hot tip” memos have any factual basis at all.
I suspect a low level staffer read through the Markopolis memo, made some phone calls, heard that “Madoff is OK,” or heard that “Markopolis is a kook,” wrote down that info, then filed the memo away.
This strikes me as classic, after the fact, cherry picking.
Find me any great American catastrophe in the last 100 years, and I'll find you a memo that predicted it in almost flawless detail.
I also have begun to doubt the $50 billion price tag on this fraud.
It's been two weeks now, and the disclosed investments are still under $25 billion.
I mean, Bernie has been lying for 20 years.
Suddenly, he tells the exact truth about how much money he lost?
Maybe.
LINK!!!
http://online.barrons.com/article/SB122973813073623485.html?mod=googlenews_barrons
Barrons is rightfully crowing about this 2001 Madoff scoop
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