So exactly how crooked is Walter Noel, and why is his spawn welcome in even the worst fringes of New York society?

Oh so sweet: the Noels enjoy the rewards of an ongoing criminal enterprise

(400 1st Neck Lane) Southampton bliss: the Noels enjoy the rewards of an ongoing criminal enterprise

For that matter, why is Walter himself still a member of the Round Hill Club? We’ll probably never know the exact extent of the Noel family’s take from Bernie Madoff’s Ponzi scheme; Noel took in billions, and returned only a portion of that to his clients, but the Trustee suit against Noel and the Noel family gives at least a glimpse of the looting. Certainly hundreds of millions, probably more, and all distributed and hidden across the globe. We’ve pointed out here before, repeatedly, that when one of the Noel daughters appears at a charity function or on African safari or dining out, she’s doing so on stolen money. The trustee’s suit details a portion of how that money was stolen, and where it went. The hiding places included offshore affiliates, family trusts, children’s trusts, even IRA’s. Picture a pack of sharks ripping flesh off the carcass of a great blue whale and you have the Noel family, in action.

(Note, by the way, the late summer/early fall 2008 withdrawals of cash by the daughters – Madoff was arrested December 11, 2008, and the walls had been crumbling long before that).

Through his ongoing investigation, the Trustee discovered that the [Noel controlled] Feeder Funds were no longer directly in possession of the majority of the billions of dollars in transfers they received from BLMIS. Rather, the Feeder Funds had subsequently transferred the bulk of the money to FGG investors and a number of FGG-related entities and individuals (the “FGG Affiliates”). The FGG Affiliates include:

Other FGG Funds: Fairfield Sigma Limited (“Sigma”), Fairfield Lambda Limited (“Lambda”), Chester Global Strategy Fund Limited (“Chester”), Chester Global Strategy Fund, L.P. (“Chester L.P.”), Irongate Global Strategy Fund Limited (“Irongate”), Fairfield Greenwich Fund (Luxembourg) (“FGF”), Fairfield Investment Fund Limited (“FIFL”), Fairfield Investors (Euro) Limited (“FIL-Euro”), Fairfield Investors (Swiss Franc) Limited (“FIL-Swiss”), Fairfield Investors (Yen) Limited (“FIL-Yen”), Fairfield Investment Trust (”FIT”), FIF Advanced, Ltd. (“FIFA”), Sentry Select Limited (“SSL”), and Stable Fund LP (“Stable”).

  •  Administrative Entities: Fairfield Greenwich (Bermuda) Ltd. (“FGB”), Fairfield Greenwich Limited (“FGL”), Fairfield Greenwich Advisors LLC (“FGA”), Fairfield Greenwich GP, LLC (“FGGP”), Fairfield Greenwich Partners, LLC (“FGP”), Fairfield Heathcliff Capital LLC (“FHC”), Fairfield International Managers, Inc. (“FIM”), Fairfield Greenwich (UK) Limited (“Fairfield-UK”), Greenwich Bermuda Limited (“GBL”), and Chester Management (Cayman) Limited (“Chester Management”).
  •  Management Individuals: Walter Noel, Jeffrey Tucker, Andres Piedrahita, Mark McKeefry, Daniel Lipton, Amit Vijayvergiya, Gordon McKenzie, Richard Landsberger, Philip Toub, Charles Murphy, Robert Blum, Andrew Smith, Harold Greisman, Gregory Bowes, Corina Noel Piedrahita, Lourdes Barreneche, Cornelis Boele, Santiago Reyes, and Jacqueline Harary.

36. The other FGG funds and administrative entities collectively received over a billion dollars of management and performance fees for supposedly monitoring the Feeder Funds’ investments with BLMIS. Similarly, the through the other FGG funds and administrative entities, FGG management individuals received hundreds of millions of dollars.

Which of the Noels gorged themselves on Maddoff’s (and Walter’s) victims? All of them.

VIII. THE DEFENDANTS

60. Walter Noel was one of the original founding partners of FGG. Four of his sons- in-law and one daughter were partners or associated with FGG. As a founding partner, Noel was entitled to compensation and partnership distributions from FGG’s operations through FGL and FGB. As outlined below, Noel directed the compensation and distributions due him from FGG’s operations to a number of entities. In addition, a number of entities associated with Noel invested in FGG funds and as a result received subsequent transfers of Customer Property.

61. Upon information and belief, Noel, through the various Noel-related entities, directed a portion of the subsequent transfers of Customer Property to his daughters. Walter Noel has five daughters that were beneficiaries of certain Noel trusts and other related entities: Alix Toub, who is married to FGG partner Philip Toub; Corina Noel Piedrahita, an employee of FGG and married to FGG founding partner Andres Piedrahita; Marisa Brown, who is married to FGG partner Matthew Brown; Lisina della Schiava, who is married to FGG partner Yanko della Schiava; and Ariane Sodi.

70. Defendant Marisa Brown has, through her connections to various FGG entities, received transfers of funds that were initially transferred to BLMIS by the Feeder Funds. For example, as a beneficiary of Defendant Noel 2004 Family Trust—which received subsequent transfers from GS, Fairfield International Managers, and Chester Global Strategy Fund LP— Defendant Marisa Brown received subsequent transfers. For example, she withdrew $3,650,000 from Defendant Noel 2004 Family Trust in January 2008. This withdrawal constitutes a subsequent transfer of Customer Property.

75. Lisina della Schiava: Defendant Lisina della Schiava is a resident of Italy. She maintains a residence at Via Bramante 8, Milan Italy 20154.

76. Defendant Lisina della Schiava has numerous connections to FGG individuals and entities, including the other Noel entities named as defendants in this Complaint. She is the daughter of FGG founding partner Walter Noel and is married to FGG partner Yanko della Schiava. Defendant Lisina della Schiava is also one of the beneficiaries of Defendant Noel 2004 Family Trust.

77. Defendant Lisina della Schiava has, through her connections to various FGG entities, received transfers of funds that were initially transferred to BLMIS by the Feeder Funds. For example, as a beneficiary of Defendant Noel 2004 Family Trust—which received subsequent transfers from GS, Fairfield International Managers, and Chester Global Strategy Fund LP— Defendant Lisina della Schiava received subsequent transfers. For example, she withdrew $500,000 from Defendant Noel 2004 Family Trust in March 2008, and an additional $500,000 in July 2008. These withdrawals constitute subsequent transfers of Customer Property.

83. Defendant Ariane Sodi has, through her connections to various FGG entities, received transfers of funds that were initially transferred to BLMIS by the Feeder Funds. For example, as a beneficiary of Defendant Noel 2004 Family Trust—which received subsequent transfers from GS, Fairfield International Managers, and Chester Global Strategy Fund LP— Defendant Ariane Sodi received subsequent transfers. She made the following withdrawals from GS: $400,000 in May 2006; $300,000 in August 2006; $300,000 in October 2006; $300,000 in August 2007; $300,000 in August 2008; $400,000 in October 2008. In addition, she withdrew $300,000 from Defendant Noel 2004 Family Trust in July 2008. These withdrawals constitute subsequent transfers of Customer Property.

42 Comments

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42 responses to “So exactly how crooked is Walter Noel, and why is his spawn welcome in even the worst fringes of New York society?

  1. Anonymous

    i think they are worse than the madoff clan…chris, why does it appear they remain in good standing ..i dont understand it

    • anon22

      There was a discussion about their “good standing” a long time ago here, when the Noels were at a Greenwich charity event. The consensus of opinion was that no one is likely ever going to confront Walter and Monica at a party, so as not to upset the host, and the way many people are two-faced, they are also not going to ignore him either, whether on the golf course or in line at the supermarket. It’s human nature to be non-confrontational. So people go on about their own business and hope the Noel’s get their just desserts.

      It’s interesting to see that 2008 was a big year for the girls to be taking out money. 2006 for one daughter was a banner year. It’s also scary to think not one daughter has a conscience, not one has said, none of that money for me dad, its ill gotten gains. So I guess he is successful in one venture – raising another generation of blood suckers.

      • Neigh Bor

        The Noel Daughters make the Kardashian girls look pretty darn good! Say what you will of Kim and her sisters, but they made every penny of their multimillions on their own. That speaks volumes. That doesn’t mean I’d want my son to marry a Kardashian but I’d shoot him if he brought home a white trash Noel filly.

  2. sunbeam43

    They exhibit what vast amounts of $$$$$ can do to vile and evil people! Abhorrent!!!!!!!

  3. towny

    Even dumb farmers can grow big potatos:

  4. anonymous

    According to the website StreetEasy, their Southampton home was for rent August through Labor Day, that’s one month.
    Ten bedrooms. 9 full and 5 half baths. Swimming pool. The all-important code words, South of the Highway.

    Can you guess the rental price? See if you can before looking at the listing.

    a) $210,000
    b) $175,500
    c) $375,000
    d) $285,000

    Mind you, its a one month rental, not the season, not the year. I’d love to know if they did rent it out, and to whom. Someone must know an agent at Prudential Elliman.

    Answer:
    http://streeteasy.com/hamptons/rental/578004-house-400-first-neck-ln-southampton-village-southampton

    • housecat

      I’m guessing it’s C.

    • Flash

      Can not imagine renting my house and then returning to sleep on that mattress under those sheets. Geeez.

    • Anon

      They did rent it. Don’t know who or for how much, though.

      • Follow The Money

        So peak season, when they own a house in the Hamptons, they rent it out and go to Greenwich? I’m scratching my head.

        • housecat

          Maybe they screwed over more people in the Hamptons?

        • anon

          Pretty common scenario. People who own a couple of homes, no matter their income bracket, are not averse to getting rental $ at peak season that will pay the taxes and upkeep. But what I’ve seen is that August is no longer peak. It’s July. Families with athletic kids tend to be back home mid-August for pre season sports which leaves many of those August to Labor Day houses reducing their price or looking for empty nesters.

  5. [not] Walt

    I’d like to make a special movie with the two daughters on the the bottom row, first and third, starting from the left. I know just what site to distribute it on too.

  6. Greenwich Gal

    Yes, I agree with you the Noel’s are crooked and reprehensible. However, give Round HIll Club a break as they really can’t take any action until there is a judgement on the books.

    • Robin

      GG: Sure they could. The board should sit Walter down and tell him, point blank, they want him out. Private clubs are private so they can do what they damn well please. Don’t want blacks or Jews? Join a private club. Round Hill should set the example. It’s shameful they don’t. They need NO reason. It’s like buying a coop in the city, if they don’t like you, they can simply say DENIED, with no explanation necessary.

      • Follow The Money

        RHC can say to Noel we want you to resign; it would be clean and easy. No fuss. No muss. The fact that the Noels don’t resign is further indication of how large a pair of brass balls Walt has. They know they are unwelcome, but are such losers, they can’t let their minds even go there. Has any member resigned in protest to Walt’s continuing tenure at any club? I’d leave and I’d make a stink about it too.

  7. isn’t lack of money the worst crime in high society?

  8. Anonymous

    Maybe he can display contrition by funding MISA.

  9. Greenwich Gal

    There are members at RHC who are passionate defenders of the Noels as well as members who are equally horrified by them. The Noels’ story is they were equally duped by Madoff and are also “victims.” So, I imagine the board has resolved that if and when they are proven guilty they can then remove them without too much fuss.

    • Robin

      Let me be the first to say that I wouldn’t want to be friends with anyone who is a passionate defender of the Noels. Nor a member of a club where there were several of the same mindset. The Victim Excuse is as lame as they come. If the Board at RHC has so resolved that Noel will stay until he’s proven guilty, then it’s a safe bet Noel will be a Member Emeritus when he’s far longer in the tooth than he is now.

    • The Noels’ defenders might want to address how this man who was so cruelly duped by Madoff set up a dozen different entities in which to hide and distribute funds, collected billions of dollars on a promise to vet the people (just one, it turned out: Madoff) he would entrust that money to, took hundreds of millions from those billions for himself as “management” fees when he did no managing and knew he was performing no management role, set up trusts, funded with tens of millions of dollars for himself, his family and each of his five children, and never, ever inquired into how all the Madoff “profits” were being produced.
      There is a difference between stupidity and willful ignorance; Walter Noel pursued the latter, and anyone who defends him or treats him, his wife, his daughters and their husbands as anything but social pariahs should be profoundly ashamed.

      • CEA

        The dozens of different entities will be explained as “tax purposes”- I mean, this is a man with sons-in-law of many different countries, they have to do something creative to minimize the tax burden!

        I posted below about the willful complicity; it is obvious to any of us who actually did do business with FFG.

  10. anonymous

    Just to make it clear, this is not some victimless crime that these shysters are living large off of. Hundreds of lives of honest people were ruined so Lady Mac Noel could elevate herself and her brood. You can be sure that if even one Round Hill Club member had invested his life savings with Madoff through Noel, and lost it all, Noel would no longer be a member of the club. Noel was smart enough not to pooh in the nest.

  11. Anonymous

    perfectly said

  12. Greenwich Gal

    I agree. I am just imagining what must go on behind the scenes at RHC.

  13. George Leroy Tirebiter

    Looking at that picture, now I know why they call it “the horse set.”

  14. Anon

    There once was a time, not so long ago, in polite society, when a gentleman, if embroiled in a scandal, would resign from his clubs regardless of his public protestations of innocence. Then he would shoot himself.

  15. anonymous

    Ned Lamont resigned from Round Hill before his ill conceived run for Senate (or was it Governor, who can remember?). After his defeat, they wouldn’t let him back in.

  16. CEA

    Peter Brant is still welcomed everywhere, private schools clamoring to educate his young ‘uns, and he did actual time.

    I once had the misfortune of having a meeting with the FFG people when I was at an asset management company. Andres Piedrahita ran the meeting (we were trying to get on the FFG “platform”, so they would put some client money with us). You should have HEARD the questions AP was asking – incredibly detailed, ridiculously picayune ones about our returns, their “skew”, kurtosis, etc. etc. All done in a very high-and-mighty way.

    Turns out 90%-95% of their client funds went directly to Madoff. The questions he asked were just window-dressing, so they could tell people “we’ve interviewed other managers, but Madoff has the best returns”.

    So I agree when CF says that they wilfully turned a blind eye. They knew the questions to ask – God knows they asked them of every OTHER asset manager they planned on turning down. They chose not to or – chose to invest anyway.

    Wilfull ignorance, or outright complicity. Your call. But it wasn’t innocent victimhood. I had the pleasure of meetings with FFG, and their claims to interview other managers, and to “intensively vet” all their managers (“all” – Madoff) was – as many can attest – garbage.

  17. Anonymous

    It makes me want to throw up!. What a bunch of fools we are to welcome crooks into our midst because they look good, have pretend money and seem to fakely fit in…rather than look into someones soul and befriend the good people. This is a sick world lately….