LONDON—Britain’s Serious Fraud Office said Tuesday it won’t take action against the directors of Madoff Securities International Ltd., the U.K. arm of Bernard Madoff’s investment and trading business.
“Following a thorough review of all the available evidence it has decided to take no action against either the company or its directors there being insufficient evidence to provide a realistic prospect of conviction,” the SFO said.
However, investigators have found it difficult to prove that workers at Mr. Madoff’s London office, which employed about 25, were knowingly involved. U.K. employees have said they were unaware of the fraud, people familiar with the matter told Dow Jones Newswires.
Investigators have had similar challenges building a case against fund firms that funneled client money to Mr. Madoff’s Ponzi scheme because they need to establish whether there were funds moved by these firms after the fraud came to light in mid-December 2008, meaning people at the funds would have been in full knowledge of allegations regarding criminal acts, these people added.
Tag Archives: Walter Noel. Funds of funds
Not that Walt Noel needed more drumsticks applied to his 79-year-old noggin, but now comes word that the Madoff bankruptcy trustee, Irving Picard, is denying all claims from victims of feeder funds like Walt’s FGG. This probably isn’t good news for the Noel fortune but one of the Fabulous Five doesn’t seem disturbed. She was seen dining at a hugely expensive Palm Beach restaurant by one of our most prominent Greenwich realtors. Who? I probably shouldn’t say, since the poor guy was there busing tables and wouldn’t want that known, eh Brad?
Exciting news for all readers who have been concerned about the swine flu pandemic sweeping the world and threatening your loved ones. This blogger has teamed up with none other than our regular contributor Walter Noel and offer, for the first time, an absolutely fool-proof remedy and vaccine against those vicious bugs. Walt has taken his extensive experience with equine virus and merged his knowledge with that of Dr. Koolabumbha Nokeses, Nigeria’s most famous witch doctor. Now everyone in your family can be protected against harm and, if you wish, Dr. Nokeses can redirect the flu to your enemies. This is a limited offer so send your banking information before midnight tonight c/o Walt on Mustique. His representatives will contact you.
Andrew Cuomo, who sat back in the weeds while Massachusetts assembled a civil fraud case against Madoff feeder funds, has now charged Ezra Merkin and his feeder fund, Ascot, with the same claim. Connecticut’s courageous Attorney General, Dick Blumenthal, now has a pretty good feel for which way the wind’s blowing and we can expect him to join in the fray any month now – probably after his betters get past the initial court hurdles. But he’ll be there at the end to claim credit, in front of the cameras, I promise you.
The Ascot fund was formed by Mr. Merkin in 1992 exclusively as “feeder” fund for Mr. Madoff, says the Attorney General. It grew to hold $1.7 billion from 300 investors by the end of December, 2008. Mr. Madoff then used the money in a massive Ponzi scheme.
About 85% of the investors in the Ascot fund did not know their money was siphoned to Mr. Madoff, the complaint says. For those that knew, the truth about the size and scope of the investment was obfuscated, says Mr. Cuomo. Mr. Merkin collected an annual fee from Ascot’s investors amounting to 1% to 1.5% of the total assets in the fund – a fee that included the fictitious Madoff returns, says the complaint. By 2008, Mr. Merkin was collecting about $25.5 million a year from managing Ascot.
And if you think that set up was similar to Walter’s, try this:
Mr. Merkin was not personally heavily invested in his own Ascot fund. He did not reinvest his $169 million in management fees for the years 1995 to 2007 back into his own fund, says the complaint. All told, Mr. Merkin invested personally and through family trusts and foundations $7 million in Ascot in its first six years, and less than $2 million over the following 10 years.
I’m waiting for criminal fraud charges to compliment the civil ones but I expect those will come from out-of-state, rather than Hartford. Tough to put your golfing buddy in jail, I guess.
Bernie Madoff kept $45 million in municipal bonds while Walter Noel put $7.5 billion with Bernie. I wonder if Walter can get a refund for that Harvard law degree?
Madoff seeks to keep NYC penthouse, $62M in assets
NEW YORK (AP) — Bernard Madoff is seeking to keep a $7 million Manhattan penthouse and an additional $62 million in assets, saying they are unrelated to the fraud that authorities say cost victims more than $50 billion. In court papers filed Monday in U.S. District Court in Manhattan, Madoff and his lawyer claim the apartment, $45 million in municipal bonds and $17 million more in a separate account all belong to Madoff’s wife, Ruth. The bonds in an account held by Ruth Madoff at COHMAD Securities Corp. and about $17 million held by her in a Wachovia Bank account “are unrelated to the alleged Madoff fraud and only Ruth Madoff has a beneficial interest in these assets,” Bernard Madoff and lawyer Ira Sorkin said, according to the papers.
Despite what her lawyer says, I think Ruthie’s going to have a hard time demonstrating that she earned the $10 million apartment, $45 million in bonds and $17 million in “other assets” from her kosher cookbook sales, in which case, she won’t be be allowed to keep them.
Ezra Merkin, a Madoff scam “victim” used former “Yuppie Five” felon as financial advisor while advisor was still in jail. The most amusing part? The crook warned Merkin that Madoff was making up imaginary numbers for his reported profits. But why stop when you’re charging big fees? Walter didn’t, either.
One of the top advisers to the money manager J. Ezra Merkin, who invested $2 billion of his clients’ money with Bernard L. Madoff, is a convicted felon who worked for Mr. Merkin while still in federal prison, according to recently filed court documents.
The adviser, Victor Teicher, who had been convicted of federal securities fraud and was barred from the securities industry, advised Mr. Merkin on the management of his Ariel Fund Ltd. through phone calls made to Mr. Merkin’s Park Avenue office from a New Jersey prison.
WSJ: Funds of funds being pinched as investors realize they’ve been duped. “Funds of funds work well when the model is working”, says one genius. “Right now, the model is broken.” Heck, send me a fee of $10,000 and I’ll give you investment advice. I guarantee that you’ll earn a nice profit. Until you don’t.