Miami’s Own Mini-Madoff

The Fall Of A Law Firm

Scott Rothstein

Scott Rothstein, the politically connected Miami attorney, who fled to Morocco, due to investors pressing him regarding their money, has returned to South Florida and was met by FBI agents at the airport.

Preliminary evidence indicates Mr. Rothstein has been running a $500,000,000 ponzi scheme out of the Sunshine State, leaving his law firm in the lurch.

The firm is down to its last $500,000 and may face difficulties making payroll, with a staff of 75 people.

Politically connected lawyer returns to face fraud questions

In Print: Wednesday, November 4, 2009 - A flashy Fort Lauderdale lawyer who investors say fleeced them for hundreds of millions of dollars flew back from Morocco on Tuesday to face federal prosecutors considering criminal charges, the Miami Herald reported.

While Scott Rothstein and his defense attorney, Marc Nurik, held the discussions, a Broward County judge appointed an independent receiver to examine the financial records of Rothstein's law firm, Rothstein Rosenfeldt Adler.

Rothstein, 47, had left for Morocco on Friday as news of his alleged investment scam started leaking around Broward County. He came back facing an FBI investigation and the loss of his law firm. The once high-flying firm, formed in 2002, has only $500,000 left in its bank account, a lawyer said.

Rothstein, suspected of running a Ponzi scheme, apparently drained vast sums of money from the firm, his partners say.

Rothstein's investors had $500 million deposited in a Canadian bank on Oct. 23 and that money was gone seven days later, said William Scherer, an attorney representing investors who he says lost more than $70 million...

http://www.tampabay.com

Artificial Growth

The Obama Administration used today's GDP numbers, which reflect small growth, to proclaim the "recession" over, but is it. The administration is in danger of falling into a false sense of security.

Unemployment continues to skyrocket, foreclosures still soar, corporate revenue declines are still massive and consumer spending is way down. The crisis continues to surpass the Great Depression in the areas of foreclosures and revenue declines, among other things.

The aforementioned growth is actually the many billions in stimulus money, the government doled out that certain businesses are claiming as revenue. Therefore, said growth is not the real deal. It is artificial growth.

The government cannot sustain this form of growth by spending one to two trillion per year, as it will wreak havoc on the national deficit. Corporate America needs to start cutting back on waste and creating actual products and real services again. No more ponzi schemes, rip-offs or gouging.

With big government boost, U.S. economy grew in 3rd quarter

The U.S. economy roared to life this summer, as an array of government actions led to the strongest quarter of growth in two years.

The Commerce Department reported Thursday that the nation's gross domestic product rose at a 3.5 percent annual rate in the July-through-September quarter, the clearest evidence yet that the country has begun to emerge from the deepest downturn in decades.

But there were few signs in the new data that the private sector will be able to sustain that growth once the government pulls back, or that the rise will soon translate into an improving job market.

The unemployment rate has continued rising in recent months, to 9.8 percent in September, as businesses remained reluctant to hire...

http://www.washingtonpost.com

Madoff Conspirator Found Dead

Police: Madoff associate found dead at bottom of pool

This is a follow up to the September 28, 2009 article titled "Liquidators Hunting Madoff's Millions" which mentioned a "Mr. Picower" and a "Mr. Chase" as two men believed to be in unlawful possession of massive chunks of the Madoff ponzi scheme money. One of the two men has died.

Ruth and Bernard Madoff

Jeffry Picower, a man that unlawfully made $7,000,000,000 from the Bernard Madoff ponzi scheme, was found dead in his pool at his Palm Beach, Florida mansion. Currently, police do not suspect foul play. His lifeless body was discovered yesterday at 1:30PM.

Picower's passing should make it easier for the Madoff trustees to freeze and seize well over $7,000,000,000 from his estate and disburse the liquidated assets to victims of the ponzi scheme.

Picower broke the law and as such, all his assets are liable for federal seizure and liquidation, to repay those that were defrauded in the scam.

Side Bar: I cannot fathom what this man is going to tell God on the other side, regarding why he unlawfully kept several billion dollars of stolen money that plunged innocent, hardworking people into poverty, after they worked hard all their lives to earn said savings. He should have returned the money and asked God for forgiveness.

Madoff's family needs to voluntarily surrender the money they are illegally sitting on, as does "Mr. Chase." Because if any of them suddenly dies, whilst wrongfully retaining the stolen money, their souls will be lost for eternity. You need to ask God for forgiveness and give the money back, as it is not yours. Stop prolonging the victims' suffering, as God will not bless you for it.

Police: Madoff associate Jeffry Picower dies at 67

PALM BEACH, Fla. — 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. He was 67.

Picower's wife, Barbara, discovered his body and pulled him from the water with help from a housekeeper, authorities said. He was pronounced dead at Good Samaritan Medical Center at about 1:30 p.m...

http://www.google.com

Liquidators Hunting Madoff's Millions

Thus far, $1.5 billion dollars has been recovered in the Bernard Madoff case. However, a duo of liquidators is still after Bernard Madoff's millions, in the fallout of the largest ponzi scheme in history.

The liquidators contend there are millions more in hidden assets, belonging to investors that needs to be reclaimed.

Ruth and Bernard Madoff

Madoff's family is breaking the law in keeping many millions in funds stolen from investors. This is referred to as the legal term "Fraudulent Transfers."

The Madoff family is sitting on at least $200,000,000. This money has been used to buy homes and live lavishly at defrauded investors' expense.

Ruth Madoff

Ironically, one of Madoff's sons has the unmitigated gall to claim the family is owed $90,000,000 from Madoff's company.

Madoff's brother, his sons and niece, put very little investment capital into the business, yet reaped hundreds of millions in returns.

The Madoff's Park Avenue apartment in New York

This should automatically qualify them for prison, as who makes that kind of return working at and investing in a business, later unmasked as a ponzi scheme, when they placed so little money into it to begin with.

One of the liquidators' poignantly stated, "If you were those sons and you knew what you knew today, wouldn't you be embarrassed to keep that money. They should give it all back. If they don't give it all back, I think we have an obligation to go get it and take it all back." Indeed.

You need to remember who their dad is - Bernard Madoff. They don't have a conscience or they could not have done this in the first place.

The liquidators are also going after two Madoff investors believed to be in on the scheme, as they took out far more than they put into his company.

An investor named Mr. Picower took $5 billion out of the ponzi scheme and another referred to as Mr. Chase reaped $1 billion.

Under a "Claw Back" clause, the liquidator is entitled to seizing that money. However, there is still $18 billion unaccounted for, which the liquidators believe is hidden somewhere.

As for Madoff's wife, Ruth, who managed his business and personal accounts and spent investor money like it was water, she had to have been aware of the financial discrepancies.

Madoff's homes, boats and all his worldly possessions, down to his mattress, was seized by the federal government, with auctions underway. The liquidation is expected to fetch $50 million dollars.

Ruth Madoff was allowed to keep $2.5 million in stolen funds that came from fleecing investors. However, she has been sued, is currently paying out that money in legal fees and is now in bankruptcy.

She is required to check with the court, when spending anything above $100. In short, she is financially ruined, but her children and brother-in-law are not. However, the liquidators intend to change that, bankrupting them if necessary to get every penny back.

Ponzi schemers and financial fraudsters beware, as this is your future as well.

Trustee Plans to Sue Madoff Family Members for $198 Million

Published: September 27, 2009 - Irving H. Picard, the court-appointed trustee hunting down any remaining spoils of Bernard L. Madoff’s giant Ponzi scheme, plans to sue Mr. Madoff’s two sons, his niece and his brother this week, seeking the return of $198 million....

Mr. Madoff’s sons Mark and Andrew, his brother Peter and niece Shana all were executives with his firm and should have known about the $65 billion fraud that went on for more than 20 years, Mr. Sheehan said.

“Whether or not they have a criminal problem we will pursue them as far as we can pursue them,” Mr. Picard. “And if that leads to bankrupting them, then that’s what will happen.”

Both Mark and Andrew, who have maintained their innocence, are trying to get $90 million they say is owed to them by the their father’s company...

http://www.nytimes.com

Stanford Caught A Beatdown In Prison

Video: Stanford Injured During a Fight With Inmate - The Associated Press

$7 billion dollar ponzi schemer, R. Allen Stanford, caught a beatdown in prison, when he got into a fight with another inmate. Smooth.

R. Allen Stanford

He was taken to the hospital for a second time since his incarceration and remains there, as doctors wish to give him an MRI. Good times (Ok, no).

Report: Stanford to be released soon from hospital

CONROE, Texas — A U.S. Marshals Service spokesman says jailed Texas financier R. Allen Stanford may be released from an undisclosed hospital either Sunday or Monday following a fight with another inmate...

Kent Schaffer, Stanford's attorney, tells the Houston Chronicle that a doctor wanted to conduct an MRI on Stanford. But he said the doctor anticipated problems because Stanford has a metal stint...

http://www.google.com

Madoff's Bad Call

A recently released recorded phone call between ponzi schemer Bernard Madoff and an associate, reveals his arrogance in attempting to rig an investigation the S.E.C. was conducting into his business, which would have uncovered his misconduct, had they done their jobs correctly.

The telephone call was subpoenaed during legal proceedings and illustrates just how confident and cocky, misguided Madoff was in wrongfully believing he would never be caught.

He is heard telling the caller the standard crooked disclaimer favored by criminals, "This conversation never took place" - before proceeding to spout off how easy it is to dupe the S.E.C.

Bernard Madoff Auction

Video: Bernie's NY Digs Up for Sale - CBSNewsOnline

The above posted video grants viewers a glimpse into the decadence lifestyle Bernard and Ruth Madoff lived, while fleecing investors out of obscene sums of money, in the worst recorded ponzi scheme in world history, with losses topping $65 billion dollars.

I don’t know what Madoff was thinking, but that’s just it, criminals do not think, they just act on their impulses, no matter who gets hurt. Then, they suffer the consequences.

Madoff beach house

Madoff’s three bedroom, four bathroom apartment, located on New York’s Upper Eastside, was stuffed with expensive antiques, fine art, exorbitantly priced furniture, crystal wear, silver cutlery and costly rugs – all illegally underwritten by stealing investors' money.

Like most criminal enterprises, this tale has come to an ugly end, as the apartment, all its contents, Madoff’s other homes and boats, are tagged for auction to the highest bidder. Madoff gets to keep...nothing.

Take note financial fraudsters who are stealing other people’s money and assets, as this is your future – incarcerated in prison with all your material possessions, intangible assets and all future earnings, auctioned off to pay back the money you stole from innocent people.

The government failed miserably in this case, as proceeds from the Madoff sale, will not cover the financial damages incurred by victims the U.S. regulatory system failed.

Side Bar: did you know that Madoff had a mistress...and he fleeced her out of money as well.