Tag Archives: ponzi scheme

Madoff trustee reaches $277 million accord with money manager’s family

The court-appointed trustee liquidating Bernard Madoff’s firm said on Friday he has reached a settlement with the family of late Beverly Hills money manager Stanley Chais that will provide more than $277 million to victims of Madoff’s Ponzi scheme.

Irving Picard, the trustee, said victims will receive at least $232 million of cash, and the rights to $30.7 million of assets that are expected to be sold.

A separate $15 million fund will pay claims by California investors, resolving litigation by that state’s Attorney General Kamala Harris, and which had been brought in 2009 by her predecessor, California Governor Jerry Brown.

Friday’s settlement requires approval by U.S. Bankruptcy Judge Stuart Bernstein in Manhattan, who oversees the liquidation of Bernard L. Madoff Investment Securities LLC. A hearing is scheduled for Nov. 22.

The cash payout would boost to $11.46 billion the sum that Picard has recovered for former Madoff customers, or 65 percent of their estimated $17.5 billion loss. Picard has said half of the 2,597 accounts with valid claims have been fully paid off.

Read on.

Banking In the 21st Century: The Great American Ponzi Scheme

“You should resign, you should give back the money, and you should be criminally investigated.” a fiery Senator Elizabeth Warren told Wells Fargo’s chief executive, John G. Stumpf, during Senate hearings last month.
In September, Wells Fargo reached a $185 million settlement with federal regulators and acknowledged that thousands of employees, under intense pressure to meet aggressive sales targets, opened as many as two million bogus accounts without customers’ knowledge, in some cases forging signatures. John G. Stumpf, the bank’s former chief executive, declared that the actions were an ethical lapse involving 5,300 low-ranking workers, who have since been fired.
The resulting scandal forced Chairman and CEO John Stumpf to resign on Thursday, “effective immediately“…  “I have decided it is best for the company that I step aside,” he said in a statement. The bank’s board said it would claw back compensation from himvalued at $41 million. Overall, when you consider that Wells Fargo is the nation’s second-largest bank, the financial punishment it paid out is basically what amounts to chump change.

Barney Frank who joined bank board last year will be heading the Democratic key rules committee

The Democratic National Convention will be interesting this year as we will see if Democratics will come together as party with a platform to beat Trump…

From Truthout:

DNC Chair Debbie Wasserman Schultz is recommending 25 at-large appointments to the party’s executive committee. In early May 2016, she forwarded only three of the 40 names that the Sanders campaign recommended for the key committees, while installing Clinton supporters in leading positions.

And one of them is Barney Frank. Yes, the same Barney Frank who the financial regulation bill named after him, Dodd-Frank law, joined Signature Bank board of directors last year:

“As a commercial bank catering primarily to privately owned businesses, Signature Bank knows firsthand the importance small business plays in the health and vibrancy of our nation’s economy,” Frank said in a statement. “I am excited to be part of all this in my new capacity as board member and in working with the other directors and management.”
The New York-based Signature Bank has $28.6 billion in assets.

And this year, it was reported that Signature Bank was sued by investors over connection to a Ponzi Scheme:

Signature Bank has been a darling of Wall Street in the 15 years since it opened its first branch in Manhattan.

Sizzling deposit and loan growth has transformed it from a start-up to one of the biggest American banks, with $33 billion in assets. Last year, profit hit a record $373 million.

But all of its success — partly a result of its mantra to deliver top-notch service to its small and midsize business clientele — could not shield it from a Ponzi scheme that lost $66 million of investor money and sent a money manager to federal prison for three and a half years for securities fraud.

In a lawsuit in a Florida state court, the investors are suing Signature, accusing it of helping the money manager pull off his Ponzi scheme by ordering him to shift money around the dozens of accounts he kept at the bank to cover long-term overdrafts.

The cozy relationship Signature had with the money manager and his now-bankrupt investment firm helped advance the scheme, according to the lawsuit.

Lawsuit accuses JPMorgan of aiding currency trading Ponzi scheme

JPMorgan Chase Bank has been hit with a lawsuit accusing it of aiding an international Ponzi scheme that allegedly cheated victims of millions of dollars with the promise of large profits from Venezuelan and U.S. currency trading.

Filed earlier this month in Florida state court, the lawsuit was removed to federal court in Miami on Wednesday. The lawsuit was filed by Amir Isaiah of Miami law firm Genovese Joblove & Battista, a court-appointed receiver seeking recovery of victims’ money.

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JPMorgan Chase wins dismissal of Madoff investors’ U.S. lawsuit


JPMorgan Chase & Co on Wednesday won the dismissal of a lawsuit by former investors of Bernard Madoff’s firm who blamed the largest U.S. bank for turning a blind eye to his Ponzi scheme.

U.S. District Judge John Koeltl in Manhattan said the plaintiffs failed to show that JPMorgan had specific control over Madoff’s fraudulent activities. He also said the allegations suggested at most that JPMorgan’s conduct was negligent, not fraudulent.

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Trump finance chair was sued for Madoff fraud profit

And the plot thickens..

Donald Trump’s new national finance chairman – a former head of the mortgage department for Goldman Sachs – was sued in 2010 for the return of $3.2 million in fake profit from an account with Ponzi scheme mastermind Bernie Madoff.

Steven Mnuchin was named Trump’s fiancé chairman Thursday, according to Bloomberg. He was linked to Madoff through his late mother, who invested about $2 million with the financier and saw her investment grow to $5.2 million.

After their mother died in 2005, Mnuchin and his brother withdrew the money from her Madoff account. In 2008, Madoff was arrested. And in 2010, trustee Irving Picard, who filed multiple lawsuits seeking restitution for the victims of Madoff’s $17.5 billion fraud, sued for $3.2 million of the Mnuchins’ $5.2 million, saying that it was fake profit.

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Bernie Madoff: Book Says JPMorgan Chase Knew What Madoff Was Up To, Turned A Blind Eye

Say the name Bernie Madoff, and chances are everyone will immediately remember the Ponzi scheme that bilked investors of $64 billion. What likely won’t spring to mind is JPMorgan Chase’s role in the more than decadelong fraud.

And the link is all the more egregious, Helen Davis Chaitman, an attorney who represents 1,600 of Madoff’s victims, and Lance Gotthoffer write in “JPMadoff: The Unholy Alliance Between America’s Biggest Bank and America’s Biggest Crook,” because the federal government has failed to prosecute any of the bankers involved.

Democratic presidential candidate Bernie Sanders may rail about the necessity of breaking up the big banks to rein in financial abuses, but Chaitman said in an interview with International Business Times that criminally prosecuting one or two top bankers would do a lot more to clean up Wall Street.

Madoff, who started out as a penny stock trader with just $5,000 in the 1960s, was a successful Wall Street trader who once chaired the Nasdaq and whose company was responsible for making 10 percent of the trades on the New York Stock Exchange on any given day. In the early 1990s he formed an investment advisory division within his legitimate operations that turned into the largest Ponzi scheme in history. It came crashing down Dec. 11, 2008, and six months later Madoff was sentenced to 150 years in prison and ordered to pay $170 billion in restitution.

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