We start with some facts as recovered from many sources sprinkled across the philo-semitic media. My emphasis.
‘All Just One Big Lie’
Bernard Madoff was a Wall Street whiz with a golden reputation. Investors, including Jewish charities, entrusted him with billions. It’s gone.
It may be the largest fraud in the history of Wall Street, authorities said. Madoff is charged with stealing as much as $50 billion, in part to cover a pattern of massive losses, even as he cultivated a reputation as a financial mastermind and prominent philanthropist.
Madoff’s investors included a number of prominent hedge funds and the firm of Fred Wilpon, the owner of the New York Mets. Several may have sustained billions of dollars in losses.
But the damage appears to be deepest in the small world of Jewish philanthropy, where Madoff was a leading figure. The North Shore-Long Island Jewish Health System said it lost $5 million. The Julian J. Levitt Foundation, based in Texas and focused on Jewish causes, lost about $6 million. Yeshiva University, a New York institution where Madoff served on the board, said it was examining how much money it invested with his firm.
Madoff’s own $19 million foundation, which gave to a range of New York and Jewish causes, also was wiped out.
Madoff’s alleged $50 billion fraud hits other investors
“Madoff’s investors included captains of industry, corporations — some of which are publicly traded — that used Madoff almost as a high-yielding cash management account, endowments, universities, foundations and, importantly, many high-profile funds of funds,” said Douglas Kass, who heads hedge fund Seabreeze Partners Management.
“It appears that at least $15 billion of wealth, much of which was concentrated in southern Florida and New York City, has gone to ‘money heaven,'” he said.
Federal agents arrested Madoff at his apartment on Thursday after prosecutors said he told senior employees that his money management operations were “all just one big lie” and “basically, a giant Ponzi scheme.”
One woman said that when she called the firm’s offices on Thursday she was told it was “business as usual.”
Another investor groused, “Business as usual? Of course it’s business as usual. We’re getting screwed left and right.”
“I expect to get back zero,” said Floridian Susan Leavitt, who invested through Madoff. “When he tells the feds he has $200 million to $300 million left out of billions, what can you expect?”
Madoff said “there is no innocent explanation” for his activities, and that he “paid investors with money that wasn’t there,” according to the federal complaint.
Prosecutors also accused Madoff of wanting to distribute as much as $300 million to employees, family members and friends before turning himself in.
Charged with one count of securities fraud, he faces up to 20 years in prison and a $5 million fine. The U.S. Securities and Exchange Commission filed separate civil charges.
Madoff is a member of Nasdaq OMX Group Inc’s nominating committee. His firm has said it is a market-maker for about 350 Nasdaq stocks.
He is also chairman of London-based Madoff Securities International Ltd, whose chief executive, Stephen Raven, said the firm was “not in any way part of” the New York-based market-maker.
Details emerged Friday of how Mr. Madoff ran the alleged scam, fostering a veneer of exclusivity and creating an A-list of investors that became his most powerful marketing tool. From New York and Florida to Minnesota and Texas, the money manager became an insider’s choice among well-heeled investors seeking steady returns. By hiring unofficial agents, tapping into elite country clubs and creating “invitation only” policies for investors, he recruited a steady stream of new clients.
During golf-course and cocktail-party banter, Mr. Madoff’s name frequently surfaced as a money manager who could consistently deliver high returns. Older, Jewish investors called Mr. Madoff ” ‘the Jewish bond,’ ” says Ken Phillips, head of a Boulder, Colo., investment firm. “It paid 8% to 12%, every year, no matter what.”
One of the largest clusters of Madoff investors was in Florida, where losses could be substantial. Mr. Madoff relied on a network of friends, family and business colleagues to attract investors. According to investors and agents, some of these agents were paid commissions for harvesting investors. Others had separate, lucrative business relationships with Mr. Madoff.
“If you were eating lunch at the club or golfing, everyone was always talking about how Madoff was making them all this money,” one investor says. “Everyone wanted to sign up.”
Jeff Fischer, a top divorce attorney in Palm Beach, says many of his clients were also Mr. Madoff’s clients. “Every big divorce that came through my office had portfolio positions with Madoff,” he says.
Two of his investors said that among his clients, Mr. Madoff was considered a money-management legend; they would joke that if Mr. Madoff was a fraud, he’d take down half the world with him.
Mr. Madoff’s main go-between in Palm Beach was Robert Jaffe, say several investors. Mr. Jaffe is the son-in-law of Carl Shapiro, the founder and former chairman of apparel company Kay Windsor Inc. and an early investor and close friend of Mr. Madoff’s. Mr. Jaffe, a philanthropist in Palm Beach, attracted many investors from the Palm Beach Country Club in Palm Beach, Fla.
“He was a low-key guy,” Ms. Manzke says. “He would say, ‘Look, I’m a market-maker, and I don’t want anyone to know I’m running money.’ It was always for select people. He was always closed, he wasn’t taking new money.”
The federal complaints against Mr. Madoff allege his fraudulent activities came through a secretive private wealth-management wing of Bernard L. Madoff Investment Securities, the investment firm he founded in 1960. On Wall Street, his company was perhaps better known for its operations in market-making — the business of serving as a middleman between buyers and sellers — and proprietary trading.
Through those higher-profile parts of his operation, Mr. Madoff was a pioneer in trading New York Stock Exchange shares away from the exchange. He is a past chairman of the board of directors of the Nasdaq Stock Market as well as a member of the board of governors of the National Association of Securities Dealers and a member of numerous committees of the organization, according to his firm’s Web site.
Mr. Madoff owns a home in Roslyn, N.Y., records show, and an elaborate beachfront home and grounds in Montauk on Long Island.
Mr. Madoff and his wife live in an apartment building on Manhattan’s Upper East Side where property records list individual apartments valued at more than $5 million. One property database estimated the 2008 market value of Mr. Madoff’s two-floor unit to be roughly $9 million. For years he has served as president of the building’s co-op board, according to a tenant.
Madoff’s arrest in billion-dollar fraud case shocks Palm Beach investors
Bernard Madoff didn’t accept money from just anyone. Clients ideally had to have at least $10 million to open an account with his New York investment firm.
While such wealthy people don’t turn up just anywhere, the Palm Beach Country Club provided enough to make Madoff’s membership in the predominantly Jewish club worthwhile.
Investing with Madoff also was attractive because the returns were so high, Rampell said. Even in recent years, when other securities tanked, returns were as high as 11 percent to 15 percent, he said.
“There is no innocent explanation,” Madoff told FBI agents, according to court documents. He told the agents he “paid investors with money that wasn’t there,” that he was “broke” and that he expected to go to jail.
The only bright spot for investors is that they may be able to get tax refunds if the investment returns were bogus, Rampell said. But, he acknowledged, that would be little compensation, either financially or psychologically, for those who knew him at the country club.
The auto industry may have to grovel for government money, but “bright spots” magically appear for the members of Madoff’s network.
Madoff Investors May Be Protected By Government
Judge Says Those Duped Need Aid Under The Securites Investor Protection Act
Meanwhile, a federal judge on Monday threw a lifesaver to investors who may have been duped, saying they need the protection of a special government reserve fund set up to help investors at failed brokerage firms.
U.S. District Judge Louis L. Stanton ordered that clients of Madoff’s private investment business seek relief under a federal statute created to rescue cheated investors. Stanton also ordered that business be liquidated under the jurisdiction of a bankruptcy court and named attorney Irvin H. Picard as trustee to oversee that process.
Stanton signed the order after the Securities Investor Protection Corporation asked that steps be taken to protect investors in the scheme, which has ensnared several major banks and prominent figures as victims and could result in as much as $50 billion in losses.
Congress created the SIPC in 1970 to protect investors when a brokerage firm fails and cash and securities are missing from accounts. Funds can be used to satisfy the remaining claims of each customer up to a maximum of $500,000. The figure includes a maximum of up to $100,000 on claims for cash.
SIPC President Stephen Harbeck said in a statement that the fund’s task will be harder than in other bankruptcies because of the size of the misappropriation and the condition of the defunct firm’s records.
Harbeck said it would be unlikely that the trustee can transfer the firm’s customer accounts to a solvent brokerage firm. He added that it was impossible at this point to determine what share each investor might hold in any remaining assets.
From its inception through December 2007, the SIPC has advanced $507 million and made possible the recovery of $15.7 billion in assets for an estimated 626,000 investors, the fund said on its web site.
If the SIPC bails out the Madoff scheme “investors” it will amount to roughly the sum total the SIPC has paid out over its entire 38 year lifetime. Sure, that’s reasonable. Ben Bernanke will just have to print another $15B.
Sailer’s Bernie Madoff as an “affinity scam” is noteworthy mainly for its comments, including:
up yours new yawk said…
What’s interesting about this Madoff scandal is the growing list of liberals and neoconservatives who felt that involvement with charities that work to keep the Jewish bloodlines clean are respectable enterprises to be involved with.
How many Jews are castigating whites for the slightest hint of racial identity and then at the same time funding various “keep it Jewish” charities?
And links in the comments, including I Knew Bernie Madoff Was Cheating, That’s Why I Invested with Him:
So why did these smart and skeptical investors keep investing? They, like many Madoff investors, assumed Madoff was somehow illegally trading on information from his market-making business for their benefit.
Auster writes in Catalog of believers:
Here is a story from today’s New York Post that names many of Bernard Madoff’s clients along with how much they lost. It seems that virtually 100 percent of his believers/followers/marks were Jews and Jewish organizations, and many of them believed in him so much that they had given 100 percent of their investment capital to him.
And from Madoff discussion:
Mark P. writes:
I’m still amazed that a handful of Jews managed to amass $50 billion…
It’s like some kind of…overclass…
(wink) (wink)
He links a video of a round table discussion featuring Madoff discussing his business in October 2007, Bernie Madoff on the modern stock market. Watch this video and note the similarity to the financial bullshit shoveled on your TV every evening. The jargon. The confidence. “We make money by taking risks.” Risk? What risk? When these brainiacs get in trouble their cronies in government put taxpayers on the hook to bail them out.
One thing that could be revealed by this scandal, but probably won’t be, is just how much wealthy jewish “philanthropy” actually goes to exclusively jewish causes. Sailer commenter “up your new yawk” notes the double standard. For jews it is considered perfectly normal to support jewish causes, but the idea of Whites contributing to or participating in or even saying nice things about exclusively White causes is grounds for an accusation that you want to load all the non-Whites onto boxcars and gas them.
A theme that is coming through, loud and clear in what I’ve heard from the MSM, Auster, and Michael Savage, is sympathy for the “investors”. It’s disgusting. The people who participated in this scam, whining now that they’ve lost everything, don’t deserve any sympathy. They’re like the border-running aliens packed in a van that veers off a cliff trying to escape the police. They’re like the bank robbing accomplices who get cheated out of their share by their crooked ringleader.
For years these “investors” thought they were golden, wringing their soft greedy hands with glee over the returns from their invite-only too-good-to-be-legal “jewish bond”. It paid them far more than the lowly nobody putzes, ie. the rest of us, could make via honest means, and they knew it. We nobodies must accept a return that is stable but doesn’t even beat inflation, or we play 401K roulette and take on real risk. Hands up, how many of you lost big money in your 401K this year and can expect the government to bail you out? Hands up, how many don’t have any savings?
This Madoff scheme is being described as the “biggest fraud in history”. No, that would be the September bailout as a whole. Madoff is but a small window into finance capitalism’s corruption and insolvency. Even so, Madoff’s collapse exposes a few major lies upon which the thoroughly judaized progressivist-globalist regime is based: “we’re all equal, but some of us are more equal”, “we deserve these big profits because we take big risks”, and “trust us, we’re really smart and know what we’re doing”.
The white-collar criminals have been running amok for some time. The rest of us have only recently been informed that we and our children will be paying the bill, and though we don’t know what the total is we can be sure it’s enormous. The brainiacs told us we needed millions of aliens to build homes for millions of aliens. Now we have too many homes and the next thing they’ll be telling us we have to legalize all the aliens, right away, and import even more in order to save the Holy Economy – that mother of all pyramid schemes.
Now come these poor jewish millionaire “investors” – “getting screwed left and right”. It’s perfectly natural for us to wonder, how did a handful of jews manage to amass so many billions? And it’s perfectly natural to conclude that it involved screwing the rest of us left and right.
So, the people who thought they were getting something for nothing, based on their perceived innate specialness and their cleverness at tricking their host, got ripped off themselves. Well, that’s some justice, I suppose. Not nearly enough, but a start.
Where did the money go? It wasn’t all lost in the market, was it? Weren’t all investors receiving high returns? How much was taken out and how much was left in to compound?
Any news of a link between this racket and a money-laundering operation, as Michael Weiner-Savage claimed yesterday?
A question I was wondering:
Is this 50 billion fraud more than the entire amount stolen by blacks in petty muggings, armed robberies, etc?
If so on what grounds do Auster and ilk have to exclude blacks instead of jews, since jewish crime costs more than black crime?
When you consider an entire lifetime of work can accumulate maybe 1 million dollars, and that money can directly translate into saving lives by, say, giving us better health care or better roads or better armed troops, there is no meaning in the phrase: “oh it’s just money it’s not like they hurt anybody.” 50 billion dollars is mass murder, just like the black homicide rates.
And when you consider how many women are prostitutes or close-to-prostitute strip dancers or lap dancers, college girls, for money, how many college women have to sell their eggs in dangerous procedures to pay their tuitions, 50 billion dollars could just as easily be described as mass rape.
Money matters. With 50 billion dollars we could have saved the auto companies three times over, that’s millions of jobs. Millions of jobs equals all their families taken care of, with health insurance, that’s kids not dying and parents sticking together to raise them. Money matters!
50 billion shouldn’t give you 20 years in jail or a ‘fine.’ The penalty should be death. The same goes for anyone caught using this scheme who knew it was a fraud.
It’s also sickening that a jewish ‘charity’ can openly speak of jewish pride, jewish blood purity, a loyalty to their jewish homeland, etc—but it’s a crime and ‘hate’ when a white person does the exact same. In the USA, jews are brahmans and whites are untouchables. They have special, institutionalized rights and privileges, while we have a special, institutionalized requirement to serve everyone else and live in shame and scorn by all.
Who will free us of the jews?
Is this 50 billion fraud more than the entire amount stolen by blacks in petty muggings, armed robberies, etc?
That’s an interesting comparison. I’d like to see a wide-scale study of shysters like this; what percentage of these con men would turn out to be NECs? Anecdotally, they seem hugely overrepresented in this area.
And if you combined the well-documented jewish propensity to perpetuate academic frauds with these economic fraudsters, would it turn out that the jewish propensity for con-artistry is similar in proportion to the black propensity for thuggery?
I doubt it’s quite on that level, but I’d bet it’s much closer than philo-semitic WNs would ever guess. There’s a reason that jews are stereotyped as shysters.
http://www.urbandictionary.com/define.php?term=shyster
Great theme for a book:
Western Biopolitics: Shysters, Savages, and Suckers
What will be interesting to see, given that there were repeated calls for the SEC to investigate this guy and his propriety had been challenged at least twice in the media, is whether his victims will be compensated – there is no question these still rich suckers will bring a class action lawsuit if recompense is not swiftly offered.
If all these rich Jews ultimately lose nothing, and the episode can still be spun as proof that Jews were the biggest victims of Wall St. chicanery in recent times, won’t that be convenient…?
Of course, they might be compensated privately by a back-door anyway.
This money, this $50 Billion, is probably already in Israel, where, by the way, the $8.5 TRILLION also is, and those jews affected by Madoff’s alleged swindle, have insurance against fraud, and will be reimbursed, that is if the US Government doesn’t bale them out, first. Madoff, who is already out on bail, has offices in Israel, and many of the so-called jewish charities do also. The money is probably available to them in Israel, but they will also be reimbursed for their “losses” here in the US. Either this scoundrel will end up in Israel, where they have no extradition to America, (how convenient)… jews are special afterall … or maybe the buffoon in chief will pardon him before he leaves office.
It is clear that these Wall Street Jews are ECONOMIC TERRORISTS.
Use their own rhetoric against them; they call people “terrorists” all over their owned mass media and the government – so start referring to them as “economic terrorists” because of the economic destruction and havoc they cause.
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“Is this 50 billion fraud more than the entire amount stolen by blacks in petty muggings, armed robberies, etc?”
Yes, it probably is. So funny…a poor ghetto Black steals a 15 year old Honda Accord and gets a decade in a maximum-security pen for grad theft auto; Madoff steals 50 billion and is bailed out within hours using his stolen money/property – he eventually gets a few years in a medium-security country club prison. Ah, American justice.
http://www.jewishjournal.com/los_angeles/article/creditors_force_ezri_namvar_into_involuntary_bankruptcy_20081230/
Trusted friend of the community on hot spot as fight over lost $400 million begins
By Karmel Melamed
Businessman and philanthropist Ezri Namvar was once a pillar of the local Iranian Jewish community, a trusted friend to whom many in the community loaned freely and without fear.
Now Namvar and his investment company, Namco Capital Group, Inc., are accused of losing as much as $400 million loaned to him.
For the last three months, lawsuits have been filed and extensive negotiations have been taking place to resolve the hundreds of millions of dollars in disputes between Namvar’s creditors and the Brentwood Iranian Jewish businessman. On Dec. 22, two dozen creditors filed an involuntary bankruptcy petition against Namvar and Namco. (more)
These guys are being made to look like they’ve fleeced their own. It’s more complicated than that.
Early Jew investors at bottom of pyramid get big returns. Older gentile investors lured in later at top of pyramid lose big time. Money is laundered through Israeli/off shore/Swiss banks and ends up available elsewhere or the ultimate loss is smaller than the pay outs. International Jew bankers, regulators and SEC investigators look the other way, or loose their front row pew in the synagogue. The seat in some “gogues” lets the rest of the swarm know the occupant’s status.
AP corroborates Murray in Madoff ‘victims’ do math, realize they profited:
No one knows yet how many people will emerge as net winners in the scandal, but the numbers appear to be substantial. Many of Madoff’s long-term investors have, over time, cashed out millions of dollars of their supposed profits, which routinely amounted to 11 percent to 15 percent per year.
Jonathan Levitt, a New Jersey attorney who represents several former Madoff clients, said more than half of the victims who called his office looking for help have turned out to be people whose long-term profits exceeded their principal investment.
“There are a lot of net winners,” he said.
Asked for an example, Levitt said one caller, whom he declined to name, invested $1.8 million with Madoff more than a decade ago, then cashed out nearly $3 million worth of “profits” as the years went by.
On paper, he still had $4 million invested with Madoff when the scheme collapsed, but it now looks as if that figure was almost entirely comprised of fictitious profits on investments that were never actually made, leaving his claim to be owed anything unclear.
There is no mention in this report that Madoff’s long-term investors are disproportionately jewish or that some referred to their source of “ficticious profits” as “the jewish bond”.
The Madoff fraud highlights a double-standard which reveals just how judaized our society is. When jews are portrayed as victims (as they were in early Madoff reports) they are readily grouped and identified as jews, but when jews are complicit in wrongdoing their jewishness goes unmentioned.
In the media’s reaction to Madoff’s fraud we see both halves of this double-standard.
Auster grapples with mystery of jewish Bernie Madoff victimizing jews. That “absolute fiend” stole Allan Goldstein’s entire life savings! If and when it ever dawns on Auster and the other self-righteous jews that it was actually non-jews who were disproportionately screwed then their mystery will be solved. That’s when Plan B goes into full effect: the “anti-semites” are just scapegoating jews!
Meanwhile… Reuters: Arthur Nadel – Sarasota Florida Mini-Madoff – On the Lam. Is he Jewish?
Seems like Arthur Nadel – of Scoop Management – aka the Sarasota Mini-Madoff – is on the lam. And if you are asking, yes, he is a Jew, and, “a prominent player in Sarasota’s Jewish social and philanthropic circles.” Sound familiar?
Arthur – come home and get a lawyer. The word on the street is that Obama is forgiving everyone… and moving on…Madoff is out on bail and word is he will never go to jail.
Obama’s letting Bush and Cheney go! Don’t do anything rash. You can live and be well. It’s only money.
From Jim Willie of the Hat Trick Letter, while discussing the “inevitable upward move of gold (http://www.marketoracle.co.uk/Article8698.html):”
Just a quick note on the Madoff victims. A closer look of supposed victims reveals his co-conspirators. They are framed as victims by a subservient press that has no desire at all to publicize where the stolen money is stored. It is in the banks of an allied nation that is beyond reproach, bordering the Mediterranean.
Seems more and more people are figuring it out. Let’s make sure the trend of growing awareness continues.