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Posts Tagged ‘Bernard Madoff’

LuxAlpha Madoff victims barred from suing UBS

March 5th, 2010

Before You Invest

Victims of Ponzi fraudster Bernard Madoff who invested in the LuxAlpha fund have been told they can not sue UBS, the bank which helped set up the investment vehicle, a court in Luxembourg has ruled.

The ruling was made in a test case involving ten claimants following the filing of more than 100 lawsuits against UBS alleging that it neglected its duties in the management of the fund.

It was ruled that victims must instead seek claims via the liquidators of the fund.

Tatiana Togni, a spokeswoman for the Swiss bank, said: “UBS welcomes the clarification of Luxembourg law as expressed by today’s decisions of the Luxembourg Commercial Court.”

Last month, UBS reported profits levels of $1.1 billion for the final three months of 2009.

Chief executive officer Oswald Gruebel has set the bank an annual target of pre-tax profits of $15 billion – a figure he wishes UBS to achieve by 2014.

Posted in Finance Fraud

Tags: 1 Billion, Bernard Madoff, Chief Executive Officer, Claimants, Clarification, Final Three Months, Fraudster, Investment Vehicle, Lawsuits, Liquidators, Luxembourg, Oswald Gruebel, Spokeswoman, Swiss Bank, Target, Tatiana, Tax Profits, Test Case, Ubs, Ubs Bank

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Madoff Executive is Charge in Ponzi Scheme

February 25th, 2010

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The long-time director of operations for convicted Ponzi schemer Bernard Madoff’s defunct firm was arrested and charged criminally Thursday with allegedly directing that false accounting entries be made in the firm’s books to conceal Mr. Madoff’s fraud.

Prosecutors from the U.S. Attorney’s Office in Manhattan charged Daniel Bonventre, former operations director at Bernard L.

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Posted in Finance Fraud

Tags: Accounting Fraud, Bernard Madoff, Broker Dealer, Conspiracy, Director Of Operations, False Appearance, Federal Tax, Financial Losses, Fraud Charges, Investment Securities, Investor Money, Magistrate Judge, Operations Director, Prosecutors, S Books, Securities And Exchange, Securities And Exchange Commission, Securities Fraud, Sixth Person, Time Director

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In B-D deals, it’s impossible to know what lies beneath

November 24th, 2009

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LPL-Pacific Life dispute points up acquisitions’ unseen risks
By Bruce Kelly
November 22, 2009, 6:01 AM EST
Investment News

The dispute between LPL Investment Holdings Inc. and Pacific Life Insurance Co. over liability for rogue brokers is a reminder that unseen risks can be part of any acquisition, no matter how well-vetted, according to lawyers and investment bankers.

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Posted in Finance Fraud

Tags: Bernard Madoff, Bruce Kelly, Carlile Patchen Murphy, Contractor Firms, Due Diligence, Fraud Suits, Investment Bankers, Investment Holdings, Investment News, Legal Proceedings, Life Insurance Co, Pacific Life, Pacific Life Insurance, Pacific Life Insurance Co, Quarterly Earnings Report, Report Said That, Sales Practices, Securities And Exchange Commission, Staring Each Other Down, Unseen Risks

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Madoff Auditors Consent to Partial Judgment According to Securities and Exchange Commission

November 4th, 2009

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The Securities and Exchange Commission today announced that Bernard Madoff’s auditors have agreed not to contest the SEC’s charges that they enabled Madoff’s fraud by falsely stating they audited the convicted fraudster’s financial statements in accordance with the relevant accounting and auditing standards.

On November 3, 2009, the SEC submitted to the Honorable Judge Louis L.

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Posted in Finance Fraud

Tags: Accounting Principles, Audit Reports, Auditing Standards, Bernard Madoff, Consents, David Horowitz, Disgorgement, Federal Judge, Federal Securities Laws, Financial Statements, Fraudster, Gaap, Honorable Judge, Injunctions, Investment Securities, Permanent Injunction, Ponzi Scheme, Securities And Exchange Commission, Southern District Of New York, Today Announced That

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Tom Petters trial set to begin

October 30th, 2009

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Jury selection is due to begin in the trial of Minnesota businessman Tom Petters, who stands accused of conducting a $3.65 billion Ponzi scheme.

Mr Petters is pleading not guilty to more than 20 different charges, which include allegations of money laundering, obstruction of justice and fraud.

A 16-member jury is to be selected today (Wednesday 28th October 2009) for the case, which is expected to run for up to six weeks.

Prosecutors claim that Mr Petters and his associates convinced investors to loan them money to purchase electronic goods to sell on to large retailers.

But the money being paid back to clients in return for their investments actually came from funds from new investors, while Mr Petters reportedly used the cash to fund a lavish lifestyle.

Five of his ex-colleagues have already pled guilty to their part in the scheme.

Earlier this year, Bernard Madoff, who masterminded a global $65 billion Ponzi scheme, was sentenced to 150 years in jail.

Posted in Finance Fraud

Tags: Allegations, Bernard Madoff, Businessman, Colleagues, Electronic Goods, Fraud, Investments, Investors, Jury Selection, Lavish Lifestyle, Member Jury, Money Laundering, Obstruction Of Justice, Ponzi Scheme, Prosecutors Claim, Six Weeks, Tom Petters

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Madoff associate Jeffry Picower dies at 67

October 26th, 2009

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Jeffry Picower benefited greatly from Ivan Boesky’s fraud in 1980s and made about $6 billion from Bernie Madoff’s scheme.

Jeffry Picower, a philanthropist accused of profiting more than $7 billion from the investment schemes of his longtime friend Bernard Madoff, was found at the bottom of the pool at his oceanside mansion and died Sunday, police said.

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Posted in Finance Fraud

Tags: Beach Fire Department, Beach Police, Bernard Madoff, Bernie Madoff, County Property Appraiser, Diabetes Research, Family Attorney, Good Samaritan Medical Center, Harvard Medical School, Investment Schemes, Iron Gate, Ivan Boesky, Jeffry, Longtime Friend, Massachusetts Institute Of Technology, New York Public Library, Palm Beach, Picower Foundation, Police Cars, Samaritan Medical Center, Sekula, Swimming Trunks, William D Zabel, York Public Library

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Ponzi schemer Richard Piccoli gets 20-year term?

October 23rd, 2009

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Victims of a multimillion-dollar Ponzi scheme who wanted the man who robbed them severely punished got their wish Wednesday when a judge sentenced the 83-year-old businessman to a 20-year prison term.

“A hundred-fifty years ago we would have taken him out and hung him,” said investor Carl Bell, 64, one of three victims who spoke at the sentencing of Richard Piccoli of Amherst, a suburb of Buffalo.

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Posted in Finance Fraud

Tags: 31 Million, Bernard Madoff, Business Deal, Carl Bell, Catholic Newspapers, Clergy Member, Defense Attorney, Defense Request, District Judge, Going To Jail, Good Business, Judge William, Member Investors, Multimillion Dollar, Palm Beach, Palm Beach Condos, Ponzi Scheme, Prison Term, Schemer, Widower

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HSBC facing multiple lawsuits in Ireland over Madoff investment

October 15th, 2009

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HSBC Holdings is facing a potential 60 lawsuits in Ireland after investors lost money it had given to the bank in Bernard Madoff’s notorious Ponzi fraud.

A Dublin court is to decide later this week whether investors can pursue a lawsuit against HSBC, which is alleged to have breached its custodian services to the clients.

It is claimed that HSBC Institutional Trust Services in Ireland used Madoff’s investment securities subsidiary.

Earlier this year, Madoff was sentenced to 150 years in prison for masterminding the scheme.

His brother and his wife have also been named in separate lawsuits relating to the scam.

The largest claimant in the HSBC case is Thema International Fund, which is seeking around $1.5 billion for its investors.

Individual shareholders, including finance houses and foreign banks, have also launched claims against the bank.

HSBC spokesman Brendan McNamara told Bloomberg: “HSBC considers that it has good defenses to these claims and will continue to defend them vigorously.”

Posted in Finance Fraud

Tags: Bernard Madoff, Bloomberg, Brother, Claimant, Custodian Services, Dublin, Finance Houses, Foreign Banks, Fraud, Hsbc Holdings, Institutional Trust Services, Investment Securities, Investors, Ireland, Lawsuits, Lost, Mcnamara, Shareholders, Spokesman, Subsidiary

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JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine

October 11th, 2009

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JPMorgan Chase, Credit Suisse and Morgan Stanley have agreed to pay out $100 million over claims they were involved in a Ponzi scheme at the now bankrupt mortgage lender American Business Financial Services (ABFS).

JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine

The lawsuit alleged that ABFS had become insolvent in 2000, but created the impression it was still financially viable with the assistance of the Wall Street firms.

Bear Stearns, which is now part of JPMorgan Chase, was also named in the lawsuit.

George Miller, the ABFS’s bankruptcy trustee, was seeking at least $750 million from the banks on behalf of more than 20,000 people who lost their life savings when ABFS went bankrupt.

JPMorgan Chase paid $55 million on behalf of it and Bear Stearns to settle the case, while Credit Suisse paid out $37.5 million and Morgan Stanley $7.5 million.

The companies denied any wrongdoing.

Last month, changes to the Security and Exchange Commission’s investigations policies into Ponzi schemes were recommended after it missed Bernard Madoff’s $50 billion worldwide fraud for years.

Posted in Finance Fraud

Tags: 100 Million, 5 Million, Abfs, American Business Financial Services, Bankruptcy Trustee, Bear Stearns, Bernard Madoff, Business Financial Services, Chase Credit, Credit Suisse, George Miller, Jpmorgan Chase, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ponzi Schemes, Security And Exchange Commission, Wall Street, Wall Street Firms, Wrongdoing

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Madoff family to be sued over Ponzi scheme

September 29th, 2009

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Several members of Bernard Madoff’s family are set to be sued for $198 million, according to the trustee who is winding down Madoff’s company.

Trustee Irving Picard told CBS News that Madoff’s brother, his two sons and a niece all held executive positions within the firm and should have known about the 20-year Ponzi scheme.

Bernard Madoff is currently serving a 150-year prison sentence after he admitted to masterminding the multi-billion dollar fraud, which saw investors paid with the money of new clients.

Mr Picard said the lawsuits filed against the Madoff family members accused them of negligence, breach of fiduciary duty and profiting personally from the crime.

“Whether or not they have a criminal problem we will pursue them as far as we can pursue them,” he said.

“And if that leads to bankrupting them – then that’s what will happen.”

He estimated that around $18 billion of investors’ money remained unrecovered.

Victims of the Ponzi scheme included director Steven Spielberg and talk show host Larry King.

Madoff’s wife Ruth has been named in one of the 13 other lawsuits that Mr Picard and his lawyers have launched in an attempt to recover around $15 billion of the stolen funds.

But only $1.5 billion of the stolen money has been recovered so far.