Madoff Scorches Some Huge Names...........

John A. Quayle blueoval57 at VERIZON.NET
Fri Feb 6 00:24:32 MST 2009

Madoff Client List Is Disclosed in Filing

<mailto:amir.efrati at>mailto:<mailto:amir.efrati at>amir.efrati at

The names of thousands of apparent customers of Bernard Madoff were made 
public Wednesday, including a legendary baseball player, famous actors, 
charities and pension funds -- as well as Mr. Madoff's own lawyer, who is 
defending him on charges that he ran a $50 billion Ponzi scheme

The 162-page filing made in U.S. Bankruptcy Court in Manhattan doesn't list 
the amount each client invested.

Some notable names appear on the list, including Fred Wilpon, owner of the 
New York Mets baseball team. It isn't clear how many of the clients listed 
had money at the firm at the time of Mr. Madoff's arrest on Dec. 11.

Other high-profile names on the list include former Dodgers pitcher Sandy 
Koufax, actor John Malkovich, talk-show host Larry King and New Jersey Sen. 
Frank Lautenberg. A number of estates or entities associated with deceased 
people were listed, and those, too, had some famous names, including John 
Denver Concerts Inc. Charities, museums and pension funds also show up.

Mr. Madoff's laywer, Ira Sorkin, also is on the customer list. Mr. Sorkin 
previously denied investing and reiterated that fact Thursday morning. He 
said the "information is incorrect" but declined to elaborate.

The list includes numerous accounts held by the firm's outside auditors, 
Jerome Horowitz and David Friehling. Also among the names listed are Mr. 
Madoff's family members, including his sons, Mark and Andrew, and his 
brother, Peter, as well as the employees who ran the investment-advisory 
arm of the firm, where the alleged fraud took place. The employees included 
JoAnne "Jodi" Crupi, and a company owned by the family of Frank DiPascali, 
who was a key member of Mr. Madoff's investment business.
[Bernard Madoff]

Bernard L. Madoff, the accused mastermind of a $50 billion Ponzi scheme, 
leaves Federal Court in New York, Wednesday, Jan. 14, 2009.

Also among those listed in the filing are Larry Silverstein, a New York 
developer who is currently working with partners to rebuild the World Trade 
Center, as well as a number of large financial institutions including HSBC 
Holdings PLC, UBS AG, J.P. Morgan Chase & Co., Bank of America Corp., BNP 
Paribas SA and Citigroup Inc.

A spokesman for Mr. Silverstein, Bud Perrone, said, "Losses incurred by 
Larry Silverstein and his family absolutely pale in comparison to those 
innocent investors who lost their life savings as a result of this scheme."

Other prominent New York real-estate names appeared on the list. Among them 
are two top officials of SL Green Realty, one of Manhattan's largest office 
building owners. Stephen L. Green, the chairman, and John S. Levy, a board 
member, are listed.

An SL Green spokesman said, "Steve Green prefers not to discuss his 
personal investments that have nothing to do with SL Green." He said, "SL 
Green as a company has had no exposure to investments with Madoff, and does 
not comment on the personal investments of its executives and board members."

Several members of the prominent Rechler family were on the list. A 
representative for several family members didn't immediately respond to a 
request for comment.

Scott Rechler, head of RXR Corp., a privately held property firm with 
holdings in the New York area who maintains a separate company from his 
relatives, said his investment with Mr. Madoff was "immaterial" and will 
have "no effect on anything."

The revelations come at a challenging time for New York property owners. 
Values have plunged in the face of dried up financing and the recession. 
It's virtually impossible to get loans for new construction.

The chief compliance officer of Resnick Investment Advisors LLC in 
Westport, Conn., which is on the list, said in an email that his firm isn't 
directly invested with Mr. Madoff but received client statements "for 
clients of ours who ... were Madoff clients."

Also listed as a customer is Blue Star Investors LLC, a fund started by 
leveraged buyout king Thomas H. Lee. A spokesman for Thomas H. Lee Capital 
Management, which is the investment manager for Blue Star, said Blue Star 
once had an account with Mr. Madoff but that it had long been closed. He 
declined to elaborate further.

David "Sandy" Gottesman, founder of First Manhattan Inc., a New York money 
management firm with roughly $10 billion in assets under management, is 
also on the list. Mr. Gottesman is a longtime friend of and investor with 
Warren Buffett. He owns roughly $1 billion of stock in Mr. Buffett's 
Berkshire Hathaway, and in 2003 joined Berkshire's board.

A spokesman for First Manhattan said Mr. Gottesman did not have an 
investment with Mr. Madoff, but a foundation established by him had money 
there and his wife, Ruth, once had an account but no longer has any exposure.

Each page of the list filed in court has more than 80 names, but many names 
are repeated, possibly because they had more than one type of account at 
the Madoff firm, which is in liquidation.

A list of creditors of Mr. Madoff's bankrupt firm was also filed with the 
court, as well as a list of employees. Prosecutors say Mr. Madoff confessed 
to his sons that he was part of a giant fraud that cost investors many 
billions of dollars. He hasn't been indicted but is being held in his 
Manhattan apartment under house arrest.

The list, which was put together for the Madoff firm's court-appointed 
trustee, includes names individuals and institutions that "appeared to have 
been a customer of [Bernard L. Madoff Investment Securities] with an open 
account" in the 12 months before Mr. Madoff's arrest, according to the 
court filing.

The firm that compiled the list, AlixPartners LLP, said it used records 
from Mr. Madoff's firm as well as information that alleged customers left 
in voicemails on the trustee's hotline or sent emails to the Securities 
Investor Protection Corp., an agency that is assisting with the firm's 

The trustee used the list to mail out claims forms that customers can fill 
out in the hopes of receiving up to $500,000 in cash advances from SIPC, 
which was set up by Congress to help customers of failed brokerages.

The list does not appear to include the thousands of customers who invested 
in the Madoff firm through so-called feeder funds run by Fairfield 
Greenwich Group and many other firms.

It is possible that some names on the list are trustees, executors and 
lawyers, who are not themselves clients of the Madoff firm but were on a 
mailing list to receive client statements because they dealt with tax 
issues for their own clients who had money invested with Mr. Madoff.

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