Tag Archives: Walter Noel

And Walter Noel skates away, again

Heh heh heh heh heh - again

Heh heh heh heh heh – again

News today that the father-son founders of GMB Capital have pled guilty to fraud and will spend five years in jail. What did these guys do? They promised investors that they’d  trade their money using super-secret algorithms invented by the farther, MIT professor Gabriel Bitran , and instead gave the money to Walter Noel’s  fund of funds Tremont Group, which in turn shoveled it over to Bernie Madoff.

So the Bitrans are guilty of telling investors that they’d employ one trading strategy but instead, they simply entrusted the money to a fund of funds group which, unfortunately was run by Walter Noel.

Walter Noel promised investors that he’d place their money with a meticulously selected group of other hedge funds, each managed by individuals scrupulously vetted by Noel and his experts. Instead, he did no due diligence, he used no other hedge funds, turned everything over to a single fund, the Madoff Scam LLC, and lost everything.

“The Bitrans’ funds suffered losses of more than $140 million. The men paid themselves as much as $16 million in management fees over the life of the businesses and recovered $12 million of their own investments when the funds were doing poorly, the U.S. said, adding that the two discussed their scheme in e-mail exchanges.”

Noel and his co-conspirators lost billions, paid themselves hundreds of millions of dollars, and have paid back something like $50 million of that, leaving them plenty of money to maintain the Noel lifestyle, keep their multiple residence, jet and cruise around the world and buy NYC townhouses for the five Noel fillies.

Walt seems to be shaping up as the Greenwich version of Jon Corzine; funny, he doesn’t look smart enough or have secrets enough to pull that off.

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It seems that Bernie Madoff may not make the full 150 years

 

Same scam, different results

Same scam, different results

Reportedly had a heart attack last month, although he’s now back in his cell.

The Madoff family has not come out of this well, unlike the Walter Noel clan, which just celebrated another Christmas / New Years on Mustique.

His only surviving son, Andrew Madoff, 47, is currently receiving treatment for stage-four cancer. Son Mark Madoff, 46,  hanged himself in his SoHo apartment on Dec. 11, 2010, the second anniversary of his dad’s arrest.

His ex-wife, Ruth, 71, now lives in [Old] Greenwich, Conn.

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Oops! Another Madoff co-conspirator arrested in Greenwich

Feds showed up at Paul Konigsberg’s home on 19 Pinecroft Road at 6:00 AM this morning and hauled him away.

FBI agents arrested Paul Konigsberg at his Greenwich, Conn., home around 6 am Thursday. Konigsberg, 77, a longtime friend of Madoff, is expected to appear in Manhattan federal court later on Thursday.

“Konigsberg helped recruit new investors to Madoff’s Ponzi scheme,” a law enforcement source said.

The money man was a founding partner of Konigsberg Wolf & Company, a midtown accounting firm no longer in operation.

The five-count indictment that will be unsealed Thursday charges Konigsberg with conspiracy to falsify records of a broker-dealer and an investment adviser, falsifying such records, fraud, and conspiracy to commit fraud.

Konigsberg, the feds say in the indictment, directed the creation of false books and records at Madoff Securities, where a decades-long multi-billion investor ripoff was underway.

“… By December 2008, [Konigsberg’s firm] handled various accounting assignments in connection with more than 300 of Madoff Securities investment advisory accounts,” the indictment alleges.

Konigsberg through his arrangement with Madoff Securities also arranged for a relative to get a $20,000-a-year no show job that included benefits, the indictment alleges. The relative, listed as an unnamed co-conspirator, pocketed $320,000 plus health benefits from 1992 until 2008 when the firm collapsed.

Reed Brodsky, a lawyer for Konigsberg, did not immediately respond to requests for comment.

Well we can do that for you, Mr. Brodsky: “My client is completely innocent, and looks forward to his day in court”. Uh huh. My only question is, how come Walter Noel is still enjoying his pool up there at 175 Rond Hill Road?

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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.

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Back again

275 Round Hill Road

275 Round Hill Road

275 Round Hill Road has returned to the market at $5.575 million after a year lying fallow. This is a 1726 house, sort of, last remodelled in 2004. Owners paid $4.7 for it in 1999 and asked $8.4 million in 2008. That didn’t work as expected during the ensuing years that saw five price cuts and almost as many brokers, and it finally expired at the end of 2011 at a price of $5.995. And as noted, now it’s back at $5.575.

Might work – certainly a good location and the house retains much of its beauty, but lovers of old Round Hill Road houses might want to see what’s happening with Walter Noel’s place at 175 Round Hill. It’s rumored to be in the hopper, perhaps because, I was just surprised to learn, that the law suit brought by the town of Fairfield’s pension fund was withdrawn against Walter and his partner Tucker last August 16th. A quiet settlement, perhaps? Whatever’s going on, it seems that the Noels are getting ready to shake the mud off their golf spikes and vamoose.

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Oh, where will they stay? Where WILL they stay?

 

Under new ownership

Under new ownership

Walt and Monica clear out of Palm Beach. $6.6 million – after purchase cost ($4.4) plus renovations and transaction costs they maybe will net just a million or so, but that’s a far better return on their 2006 investment than any of Walt’s customers got.

With the old dump on Round Hill Road also seemingly headed for new ownership – creditor or buyer is unknown, so far – and the Mustique villa rumored to be going, that will leave the crooks just a few properties left in which to hide out. Of course there’s always son-in-law Andre’s yacht to escape on.

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I don’t have the answer, but here’s the question

From Madoffwatch London:

Dear Christopher Fountain,

Every now and again you post a little something about these appalling villains who continue to escape any kind of scrutiny by the mainstream US media, despite, as far as I am aware, not having faked their own deaths (like Jeffry Picower.)

How do they manage it?  Is nobody interested any more? In the fall of last year I noticed that there had been a derisory “settlement” of $84 million or so …..in respect of the $7 billion or so ….of their investors’ funds that they had egregiously pissed away in the Madoff Ponzi scheme.

Picard sued them all over 2 years ago but I am not aware of any progress in that case – to some extent understandable while the Trustee is concentrating his fire on those with “deeper pockets”… such as the banks…etc.  I saw also that Picard was seeking seeking to block the settlement between FG & its investors.

But surely there must be some traceable assets representing some at least of the fees etc collected by FG for their celebrated “due diligence”. Hoping you have some information about the current state of play.

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