IT'S THE HOUSE THAT RUTH LOST ($171B passed thru Bernie's crooked hands)

NY POST ^ | 6/27/09 | BRUCE GOLDING

[Liz]

MRS. MADOFF SUFFERS $UITE REVENGE--agreed to surrender more than $80M in cash and property to cover billions looted by her scheming hubby....the jet-setters will have to cough up more than $46M in securities and $13M in cash---a $7M Montauk, LI beachfront home, a $7.5M Palm Beach property, tens of millions in loans to family members and a 55-foot yacht. Feds let her have $2.5M they couldn't tie directly to the $65B mega-fraud. But the agreement offers no protection from collection efforts, including bankruptcy trustees seeking funds for wiped-out investors. US Marshals will "facilitate the expeditious disposition of personal property" including $65K in silverware, a $39K Steinway and sale of the East 64th Street duplex....only a drop in the bucket of the $171B judgment entered against Bernie....covers every nickel that passed through his crooked investment-advisory business.

[Liz]

A $171B judgment was entered against Bernie....covers every nickel that passed through his crooked investment-advisory business.

REFERENCE It was recently uncovered that Madoff kept detailed notes about his activites and that some "investors" made deals, demanding specific returns on investments.....meaning they were in on the scam. Some investors also wrote Madoff personal checks......evidence of tax evasion and money laundering.

Madoff Investors Probed by U.S. Prosecutors
May 18, 2009 | Reuters
FR Posted 05/18/2009 by CutePuppy

EXCERPT U.S. prosecutors have broadened their criminal investigation of the Bernard Madoff case to at least eight investors and associates, The Wall Street Journal reported......named as under investigation by the U.S. Attorney's Office, are Jeffry Picower and Stanley Chais, two philanthropists who are the target of lawsuits brought by the trustee liquidating the Madoff firm. Carl Shapiro, a women's clothing entrepreneur and close friend of Madoff, is also under criminal investigation....... Investigators have gathered evidence of Picower and Chais telling Madoff how much in returns they wanted and that their accounts would reflect the amounts, the paper said. It said investigators were also reviewing evidence suggesting Shapiro knew his returns were fraudulent. (Excerpt) Read more at cnbc.com ...

REFERENCE A particular characteristic of the Madoff fraud was its connection to numerous "philanthropists, charities and foundaitons." This is the way these pople live the high life, evade taxes and launder business profits. The IRS has targeted non-profit "foundations and charities" as the locus classicus for tax fraud and money laundering. Foundations writing checks to other foundations is the BIGGEST fraud----the way "philanthropists" launder money and evade taxes. Any foundation connected to the Madoffs should be investigated with a fine tooth comb for numerous frauds.

REFERENCE How much of it is off-shore? Bernie was hightailing it to global money-laundering havens before he got nailed. $12B was pulled out of Bernard L. Madoff’s firm in 2008, and $6B just three months before he was arrested last Dec..... BVI's Vizcaya Partners Ltd. and Gibraltar-based Banque Jacob Safra Ltd. got $150M (that we know of) about six weeks before Madoff was exposed.

[knarf]

Oh, how I’d love to see an acorn in this pile of nuts.

[Liz]

Oh, how I’d love to see an acorn in this pile of nuts.

LOL----good one.

[Gay State Conservative]

Carl Shapiro, a women's clothing entrepreneur and close friend of Madoff, is also under criminal investigation...

The hospital where I worked for 20+ years just opened a huge,state-of-the-art cardiovascular center named after Carl Shapiro.I'm gonna be seeing my cardiologist,who's on the staff of that hospital,next week.I'll make it a point to ask him if they'll be removing Shapiro's name from the entrance.

[ninonitti]

Looks like Ruthie better get busy writing her new cookbook:

“Bernie’s Investment Grade Blintzes”

[ninonitti]

The hospital where I worked for 20+ years just opened a huge,state-of-the-art cardiovascular center named after Carl Shapiro.I'm gonna be seeing my cardiologist,who's on the staff of that hospital,next week.I'll make it a point to ask him if they'll be removing Shapiro's name from the entrance.

I wonder if Carl will be welshing on his "charitable" donation to Brigham and Women's? If this donation was made out of funds that Madoff paid Shapiro would that money be subject to federal clawback?

If Bob Jaffe of Cohmad was in on this don't you think he'd have let his father in law Carl in on the details? For these very clever business people to feign ignorance of what Bernie was up is what gives this affair it's offensive stench.

[Oldpuppymax]

It would appear that the politicians purchased by Bernie over the years have either thrown him over or know of his offshore holdings and are giving those to his wife as rewards for years of service. We’ll see.

[NativeNewYorker]

I see Madoff’s name often on plaques at non-profits here. It’s no longer even a curiosity.

[Liz]

Thanks for the realtime report.

Just goes to show.....the filthy poseurs manipulate public opinion, making people think they are successful "compassionate philanthropists," out for their fellow man (gag).

POINTS TO PONDER Whenever someone says they would "save humanity," it's a front for the urge to rule it. (paraphrasing H. L. Mencken)

The egocentrism, pathological lying, greed and lack of concern for others is evident here.

[Liz]

Madoff Investors Probed by U.S. Prosecutors
May 18, 2009 | Reuters
FR Posted 05/18/2009 by CutePuppy

EXCERPT U.S. prosecutors have broadened their criminal investigation of the Bernard Madoff case to at least eight investors and associates, The Wall Street Journal reported......named as under investigation are Jeffry Picower and Stanley Chais, two philanthropists who are the target of lawsuits brought by the trustee liquidating the Madoff firm. Investigators have gathered evidence of Picower and Chais telling Madoff how much in returns they wanted and that their accounts would reflect the amounts, the paper said. It said investigators were also reviewing evidence suggesting Shapiro knew his returns were fraudulent. (Excerpt) Read more at cnbc.com ...

CHAIS FEEDER FUND Stanley Chais allegedly oversaw three funds that invested nearly $1 billion with Madoff. Brighton Co Investments is headed by Stanley Chais, a Beverly Hills "philanthropist" who served on "charitable" boards with Madoff. Chais (pronounced Chase) told the Jewish Journal of Los Angeles that he personally invested with Madoff but also "facilitated" others who wished to do likewise. However, spokesmen for the SEC and the California Dept of Corporations said they could find no record of Chais registering as an investment advisor or a broker.

Stanley Chais offers remarks at the Weizmann Institute of Science.

Investigators have evidence of Chais telling Madoff how much in returns he wanted and that accounts would reflect the amounts. Investigators were also reviewing evidence suggesting IRS returns were fraudulent.

[Liz]

Charged in the SEC suit was Robert Jaffe, 65, a Cohmad vice president who's been widely credited with corralling Palm Beach, Fla's wealthy set into the Madoff scam.

BGRND Robert M. Jaffe, the broker who steered many wealthy investors to Madoff's investment fund through both New York-based Cohmad Securities Corp----- partly owned by Madoff and of which Jaffe is a vice president-----and Jaffe's own Palm Beach-based M/A/S Capital Corp, previously "did business with another notorious rogue: former Boston mob leader Gennaro Angiulo."

Jaffe was the stockbroker to Angiulo and his brothers, reputed members of the Boston Mafia, before they were sent to jail on racketeering charges in 1986. He first represented the Angiulos when he worked at E.F. Hutton in the 1970s, and the Angiulos followed him when he became the Boston branch manager at Cowen & Co. in 1980, according to a Boston Globe article in 1985 that quoted Cowen's lawyer, Lawrence Leibowitz.

NOW JAFFE'S BEING CURSED Post-Madoff, Bob Jaffe was called a "dirty bastard" and nearly pummeled at posh Mar-a-Lago by Nine West shoe chain founder Jerome Fisher, who lost $150M with Madoff.

Laurence Leamer, who authored a book about the Palm Beach denizens, labeled Jaffe (a former Boston shoe salesman who inveigled the rich to invest with Madoff) "a 60-something peacock in a black dinner jacket....[with] an aging gigolo's looks, and a face that looks like a caricature of youth."

Ellen Jaffe is trying to ditch Leamer's March 16 book lecture, "Madness Under the Royal Palms," at the Kravis Center. His rep said Jaffe has not had plastic surgery, that he's been married 40 years and still "very much in love. Jaffe's name has been mud since the Madoff scandal broke.

===================================

"The Jaffes have been married 40 years and are still very much in love?" QUESTION When Mrs Jaffe goes on one of her all-day shopping excursions----does Mr Jaffe's manicurist make (cough) house calls?

Robert and Ellen Jaffe

"Bob, would you please take your hand off my ***."

[ken5050]

Great way to start the weekend, eh? Good news!!!

It would seem that for many years to come, Ruthie's life will be under a microscope by creditors..her lifestyle will have to be commensurate with her assets/income. Remember, she signed the document for the feds detailing all her assets and sources of income. If she lies..if $$ start coming in from offshore in a few years..she goes off to the pen.

BTW..anything new on the two boys. Will they have to disgorge and do time. And wasn't one of the sons served with divorce papers when Bernie first fessed up? I don't think that the soon to be ex-wife will have much luck tryign to hold onto any of trhe swag...

[Liz]

If Ruth lied.......if $$ start coming in from offshore in a few years....she goes off to the pen.

No question……she HAD to come clean and she HAD to sign away the loot……or else.

I’m sure Bernie’s squealing like a pig. The feds would not have allowed him to wear street clothes at all court appearances---- and at sentencing---- if they were not getting his cooperation.

[Liz]

BTW........anything new on the two boys. Will they have to disgorge and do time?

The sons KNOW know plenty and GOT plenty rich off the scam. Ruth's deal says she will disgorge loans she made to the boys......probably to protect them from doing time. Where will that come from? Looks like the boys will be selling prime real estate and other possessions, as well.

Don't know yet what the scammed investors might do to squeeze more money out of the Madoffs.....the fed agreement leaves that possibility wide open.

Check this out---lotsa Madoff dirt here. http://abcnews.go.com/blotter

[CutePuppy]

Apparently, Bernie did not truly cooperate with the Feds, SEC and other authorities, only showed up for meetings with them and insisted he alone knew about the scam.

Citing Cooperation, Madoff's Attorneys Seek 12-Year Sentence - FR, WP, June 26, 2009

Also, check post #6 from shawninator (Welcome to FR!) on the real reason why Sorkin is asking judge for 12 years term. Feds are asking for 150 years / life. Prosecutors Want 150-Year Sentence for Madoff - AP / CNBC, June 26, 2009

..... Prosecutors said Friday that the total losses, which span decades, haven't been calculated. But 1,341 accounts opened since December 1995 alone suffered loses of $13.2 billion, they said.

Madoff attorney Ira Sorkin argued in court papers last week for a 12-year term. He said his client deserved credit for his voluntary surrender, full acceptance of responsibility and meaningful cooperation efforts. .....

"Meaningful cooperation" was, likely, meaningless. And the losses of late investors - not always, especially in case of this very exclusive club, but usually unwitting "suckers" whose money went to pay early "investors" - average almost $10M per account.

And not much of the surprise, but haven't seen it mentioned elsewhere FBI Said to Have Traveled to Europe in Madoff Probe - BL, June 24, 2009

Agents from the FBI’s New York office have made several trips to Europe as part of their investigation of Bernard Madoff, a person with knowledge of the probe said.

Agents returned from a trip within the past several weeks as part of the government’s investigation of the case, the person said today. Madoff, 71, pleaded guilty in March to using New York-based Bernard L. Madoff Investment Securities LLC to run a $65 billion Ponzi scheme.

Federal agents have repeatedly traveled overseas in the past 6 1/2 months as part of the government’s investigation of the case, the person said. .....

David Friehling, Madoff’s accountant, was arrested and charged with securities fraud in March, the first accused accomplice to be named by authorities in connection with the money manager’s Ponzi scheme.

His case was delayed until July 16 after prosecutors and his lawyer began discussing a possible “disposition” of his case, a federal prosecutor said in court papers. .....

[Liz]

I would venture to say that Bernie’s trying to outmaneuver his “victims”——can’t let it be known he’s cooperating.

Especially if it turns out he was laundering for the Ruskis. Those boys play rough.

[CutePuppy]

Good guess, the only questions / interests for him after November 2008 disclosure would be relative “comfort” of his last years in prison, and fate of his family.

Though I would suspect, if he really cooperated with the investigations, it would not be too difficult for his “victims” to figure out in a short while... unless Feds take really good care of concealing it with their actions.

After all, some of these people may have done a good job of protecting Madoff himself from investigations for a long time.