eCanadaNow » Bernie Madoff

Malkovich Questions Madoff Liquidation Ethics

Staff — Mon, 05 Apr 2010 13:46:24 +0000

Though the initial fall out of the Bernie Madoff Ponzi-scheme has cleared and Madoff himself has been imprisoned, some aftershocks are still raging. Currently, the famous actor John Malkovich, a victim of Madoff’s infamous scandal, has begun to speak out about the amount of his award.

The court ruling stated that each victim would receive a “net equity” valuation for their investments. Put simply, a net equity valuation means that they will gain the same amount they invested in Madoff’s scheme, not the increased values promised by Madoff. Malkovich, however, has reported that his payout doesn’t come close to matching his investment.

The difference between the two numbers? Malkovich’s liquidation payout was $670,000, while his actual last earnings statement was $2.2 million. At the source of the controversy over Malkovich’s payment, as well as that of other victims, is the trustee in charge of the liquidation, Irving Picard. Picard has been overseeing the liquidation process since the ruling in 2008, and his own profits will come from the remaining Madoff money, after all debts are paid.

Malkovich and others assert that Picard is short-paying claims in order to receive a larger sum of the profits after the victims are paid.

Peter Madoff’s Probe

Staff — Fri, 29 Jan 2010 14:59:48 +0000

News of the Bernie Madoff scheme couldn’t have come at a worse time. It was a time when it became evident to the general public that much of the US economy was a scheme itself. Those who had invested with Madoff were weathering the storm until everything disappeared overnight. Now, a year and a half later, the pieces to the puzzle are still being put together. Peter Madoff is a big piece of that puzzle. When billions of dollars are involved and the brother is the chief compliance officer, there are going to be connections.

The probe of Peter Madoff began when The Lautenberg Foundation filed a lawsuit against him. The Lautenberg Foundation was one of many charities to lose millions of dollars in the fraud. In court, Peter Madoff has pleaded the fifth hundreds of times, avoiding any questions directed at him. This being the case, the Lautenberg Foundation has requested a quick summary judgment.

Irving Picard, a trustee who has been trying to recoup losses from the Madoff fraud, has also sued Peter Madoff. So far, Mr. Picard has been relatively successful in his endeavors. The total money lost from the ponzi scheme was 21.2 billion. Mr. Picard has managed to recover 1.5 billion of it for investors.

Madoff’s IT Guys Arrested, DiPascali Released From Jail

Staff — Tue, 17 Nov 2009 20:44:18 +0000

Jerome O’Hara, 46 and George Perez, 43 two IT programmers who worked for Bernie Madoff have been arrested the New York Times reported. They are accused of maintaining and creating the programs that helped Bernie Madoff to keep its fraudulent “books”. They have also been named in civil cases.

The two men worked together and shared office space in Madoff’s headquarters in New York are accused of generating phony reports over a period of approximately 15 years. The chief of Securities and Exchange Commission says that without the pair Madoff’s fraud would not have been possible. The pair face 30 years in prison if found guilty.

O’hara is said to have started working at Bernard L. Madoff Investment Securities in 1990 and Perez began working there the following year in 1991. They had actually created nine computer programs to create these false “books” over the years. Even though the firm was audited by the Securitites and Exchange Commission of five different occasions between 2004 and 2009 the FBI says these special programs generated false reports that allowed Madoff to get away with what he did.

Meanwhile, Frank DiPascali Jr.,Bernard Madoff right-hand man, has been transferred to the Westchester County Jail, but remains in federal custody.

DiPascali was released on Nov. 12, three months and a day after having first been imprisoned, CNN reports.

Madoff is serving a 150-year sentence after pleading guilty to the scam.

Madoff's IT Guys Arrested, DiPascali Released From Jail