Monday, April 4, 2016

Madoff To Testify re: "Art of Bernie's Bookkeeping"

Yes, the headline to this story is true. I'm on my way to redemption and if there is anything that I can do for the trustee and/or the 'casualties' of what I have already acknowledged as being a Ponzi scheme, I am happy to help. Trust Me.

"..The liquidating trustee for Bernie Madoff's defunct securities firm agreed on Monday to allow the convicted Ponzi schemer to talk to lawyers for Madoff investors about certain bookkeeping practices at the firm, a move Irving Picard, the trustee for the Madoff bankruptcy case, had previously opposed...."

For the full story from Law360, click here

Thursday, February 18, 2016

Litigants Barred From Double Dipping in Madoff Claim Pool

It didn't require the wisdom of Antonin Scalia to rule against plaintiffs who have been pursuing my pal Jeff Picower's remaining billions as part of the Mad Hunt to Pursue Madoff Claims. All it took was a federal bankruptcy court judge in New York to realize that double-dipping in the claim pool is no more politically correct than visiting the Boca Rio buffet table more than 3 times on any given Sunday night.

(REUTERS) Victims of Bernard Madoff's fraud cannot pursue a Florida lawsuit to recover $11 billion from the estate of Jeffry Picower, who they say helped perpetuate the swindler's Ponzi scheme, a Manhattan bankruptcy judge ruled on Wednesday.

U.S. Bankruptcy Judge Stuart Bernstein said the lawsuit by A&G Goldman Partnership and Pamela Goldman, their third effort to sue in Florida, violated an injunction barring Madoff victims from pursuing claims belonging to Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC.Bernstein oversees the Madoff firm's liquidation.

Picard had in December 2010 won a $7.2 billion settlement with the estate of Picower, who died in October 2009.But a slew of litigation ensued from Madoff customers, including many who say the trustee undervalued their claims, against Picower and other alleged enablers of Madoff. Picard has estimated that Madoff's victims lost $17.5 billion in the fraud, which was uncovered in December 2008.

In the latest Florida case, the Goldman parties added claims that Picower "propped up" Madoff's fraud with $200 million of loans to fund investor redemptions, and agreed to serve in trading records as a counterparty for many fake options trades.

The Goldman parties sought to hold Picower responsible for "all $18 billion" of Madoff customers' losses, less the $7.2 billion from the 2010 settlement.Bernstein nevertheless found it "wholly conclusory" to allege that Picower helped Madoff distribute fake statements to customers, and had enough "control" over the swindler to justify separate litigation.

He also said allowing the Florida lawsuit "would carry real risks" to the Madoff firm's bankruptcy estate, encouraging more lawsuits and perhaps undermining the $7.2 billion accord.

Bernstein nonetheless rejected efforts by Picower's widow Barbara, who oversees his estate, and other parties associated with Picower to stop further lawsuits by the Goldman parties, while saying "the question is close."

The judge said the Goldman parties have not pursued frivolous or vexatious litigation, and that the Picower parties or Picard could seek sanctions if they crossed the line.

A spokeswoman for Picard declined to comment. Lawyers for the Picower entities and the Goldman parties were not immediately available for comment.
The case is Securities Investor Protection Corp v. Bernard L. Madoff Investment Securities LLC, U.S. Bankruptcy Court, Southern District of New York, No. 08-01789.

Monday, February 8, 2016

Financial Market Wisdom From Bernie Madoff

OK, you're tuning in to the Madoff Channel because you know that I've seen more stock market ups and downs over more than 50 years than most folks. And, if you've navigated various updates I've made here and via my Twitter account over the last 7+ years during times of market upheaval and capitulation, you know that I've posted trade ideas with respect to individual stocks, gold, oil and bonds and 99% of my market calls have paid off handsomely for those who acted upon them.

But, since many still refer to me as Midas Madoff you want to know what I think right now, and you're busy puking up blood thanks to overdosing on the CNBC Cartoon Channel. I don't blame you. That said, and with the caveat that past performance is no guarantee of future performance, I must first insist that you look back over my postings here to better understand the process that I use to trade profitably.

For example, at the end of August, in the midst of the market meltdown, I expressed a voice of reason and for those who had balls, they bought either major stock indices when the Dow was hovering around 16,000 and/or individual names NOT in the energy sector and names that paid nice dividends and were otherwise able to withstand the upcoming recessionary cycle. I also cautioned that if the Dow closed noticeably below the 16,000 level (or if S&P closed below its equivalent long term trend line, all bets were off and there was a high risk of additional 10% decline from that 16,000 level. Now, many people refused to embrace the "R-word", but they did follow my suggestion and then watched the markets trade back up nearly 13% within a matter of weeks. Hopefully, you have been following my subsequent updates via Twitter to know that I've remained very skeptical of current equities prices--and I've argued that we had entered a likely bear market as early as Q2 of 2015...

At that same time in August, the price of oil, as expressed by WTI was in a free fall. At the time, it was in the $38 area and hedge funds were trying to talk it back up to the mid 40s. I suggested that it would be wise to wait until crude traded down towards 32, and if it traded as low as $28bbl, folks should take out mortgages on their South Florida condo's and get themselves a tanker so that you could back it up next to a refinery and fill it to the brim. Well, I know two folks who did just that and then sold it back out when March NYMEX oil futures traded back to 32 within a few days.

Now that I've established my bonafides, I'm of the opinion that despite today's bounce from being down 400+ to closing down only 180+, we haven't seen real capitulation just yet. And, now that hedge fund geniuses are publicizing being long of investment grade credit default swamps--meaning they are betting that the best corporate bonds are at risk of falling out of bed, and coupled with the fact that Fortune 500 CEOs are back in the mode of "must cut the fat and make no new investments"--that kind of shit thinking inevitably results in a recession.

There will be great buying opportunities in the upcoming several months. Keep your powder dry, do your homework and whatever you do, don't panic.

Saturday, January 30, 2016

What Bernie Madoff Thinks of ABC TV Show w Richard Dreyfuss

Now that more than 5000 visitors have come running back to my blog in the past week alone--presumably all wanting to know what I think about the melodrama "Madoff" starring Richard Dreyfuss, I'll tell you.

Firstly, when I was asked to be a co-producer for this production, I insisted that Erin Arvedlund be part of the writing team, as she is the only news journalist who actually got my whole story straight--well before anyone else. The boneheads at ABC rejected my demand, and claimed "we aren't really interested in the real story, we're more interested in making a drama that would frame [me] as a major sociopath" and otherwise appeal to the larger universe of morons who channel surf between watching Donald Trump and Megyn Kelly from FOX. They said, "Bernie, this is a numbers game, nothing else. We want to make sensationalist garbage because that's what most TV viewers are addicted to.."

Ok, I get it. Particularly the part about Megyn Kelly. Who doesn't love that new slicked-back-hair-dominatrix-porn-star look that she's embraced?!  Everyone here at Camp Butt Hole does, trust me!

The fact that the ABC show runners glossed over the fact that one single investor had agreed to fork over more than $7bil within weeks after the keystone kops at DOJ learned that Picard's forensic team discovered that the investor in question received the vast bulk of the funds placed into my firm, and was also the end recipient of more than $100mil every day into his trading accounts at GoldmanSachs and JPMorgan suggests they had no interest in the real story, and that nobody really wants to remember.

People might say that I shouldn't speak poorly of the dead, but then again, there's reason to believe that Jeff Picower isn't really dead, despite news reports about his being found at the bottom of his swimming pool soon after I turned myself in. Did ABC want to include in the script that Picower's consigliere, Bill Zabel, who 'negotiated' the return of the $7bil+ on behalf of Jeff's 'estate' after his purported passing had a son who was the #2 US Attorney in the same office that led the investigation in my firm's demise. Odd crap, right? Well, even if I applaud Irv Picard for his dogged efforts during the past 8 years, and for his recovering lots of money and redistributing it, let's face it, his firm has been paid nearly $1BIL for those services by the folks at FINRA.. Oh, should I add that breaking news suggests that Irv might be blocking efforts by plaintiffs who have been going after the Picower estate--even though his issue with the estate is long over? Sort makes one think why?

(Law360, New York (February 1, 2016, 10:35 PM ET) -- A New York federal judge on Monday ordered Bernard Madoff’s liquidation trustee to show why a group of investors trying to sue one of Madoff’s former top clients can’t include the con man’s apparent assertion that the client controlled the Ponzi scheme.)


Ok, now that two prime time shows are airing this week and then a few weeks later, let's refer to the majority of folks who invested in my firm as casualties, not victims. But I'm getting ahead of myself and veering off point. And so that the record is straight, despite the melodrama from TV script writers, the record shows that I turned myself in.

Yes, I turned myself in. The fact that my sons were given credit for reporting me to the FBI is simply because I wanted them to do that, so that they would not be suspected of knowing in advance about the fraud that was perpetrated. To be clear, they did not. Simply because they received out-sized sums of money in the form of non-recourse loans and 'bonuses' attributed to their role(s) at my brokerage firm--which was in decline for many years, does not make them complicit. They were kids, and not rocket scientists, and certainly not great with numbers. They, along with their cousin Shana (my compliance director at Madoff Securities), her husband Eric Swanson (who was an SEC enforcement director at that time, before his current rule as GC for BATS Global Trading) and a handful of other people enjoyed huge (as in Donald Trump-style 'huge') gifts and bonuses that any rational person could never have attributed to the performance of my securities brokerage firm. We were dying on the vine for years leading up to '08 thanks to equities markets becoming evermore electronic and more transparent.

But I digress. You want to know what I think of the ABC TV show. Given that I've had a first look at it, I'd say it's just another production that leverages dramatic license. It fails to tie in the assortment of stories of people who chose to turn a blind eye in favor of receiving returns on investment that no investment manager could deliver on a year-over-year basis, other than maybe Steve Cohen  over at Point72 could deliver. All of my biggest feeders and fund raisers were nothing more than cheap hookers. The fact that one of my biggest bundlers --who I paid millions to--now has is name on the front entrance to North Shore Hospital's "Trauma Center" is not the most ironic chapter in a book populated with phonies and country club types who duped themselves into believing they were 'special' and that investing in my fund made them privy to a top secret money-making formula that only very special were allowed in on. Puhlease..

There's nothing in the tv show script that points dead center at the big shots at the big banks and their blind eyes (.e.g JPMorgan and BNY). Nor does it spotlight the folks at those banks who actually raised red flags internally well before the events played out, or that those red flags were buried simply because I was generating millions of dollars for those banks via fees and commissions. What did I get them from? Toasters. That's right, JPMorgan sent me a new toaster every year for maintaining my account with them. No Knicks tickets, no taking me to fancy dinners.

I will say that in the parts where the narrative focuses on my love for my wife Baby Ruth, that is entirely true. Richard Dreyfuss can blow me if he wants to believe that I was insensitive to my boys and he can crawl up my butthole if he wants to think that I don't spend every day lamenting about their untimely deaths. If he still isn't convinced, so be it. As I've known for a long time, most people are basically shallow and stupid.

Bobby DeNiro's upcoming portrayal on HBO is not too bad. Not as bad as that new show Billions, which was great in the first episode, but has since sold-off dramatically. Just like the market sell-off that I predicted right here back in June of 2015. Despite  Billions being co-produced by Andrew Sorkin, a kid who I think is one of the brighter bulbs in the chandelier, the show protagonist's "Number 2" is so poorly characterized for being the second in command of a multi-billion hedge fund and his lines are so poorly written, I'm shocked that Sorkin didn't protest that actor and the lines he reads as if off a teleprompter. Even Dimes DiPascali would have been better in that role.

So instead of watching Dreyfuss, I'm going back to reading the script elements to a story that I think will be a blockbuster for the beach reading crowd, and could easily be turned into a great series.

Click here to go to the elements site

Last, everyone wants to know who I would endorse in the current presidential campaigns. Obviously not Donald Trump and obviously not Ted Cruz. I've been a Democrat for as long as I can remember and Chuck Schumer can vouch for that. Hillary Clinton is as close to being a modern day Machiavelli as anyone who I can think of and Bernie Sanders is a great lightening rod, but I don't think he's presidential material. He's too far to the left of the mainstream and even though we've elected an African American, I don't think this country is ready to elect a Jew as president. That said, if people can look past Mike Bloomberg's pedigree, and if decided to jump in at the last minute, he would likely make a fantastic Commander In Chief and CEO of the USA.

There, I've said it. Go read the book I recommended above. If you know a literary agent or a movie producer, you should point it out to them.


Tuesday, January 19, 2016

Palin Beds w Trump-Congress Emergency Bill to Allow Marijuana for CNN Syndrome

Not a surprise. Sarah Palin is exactly the type of tart that he appeals to and her endorsing Donald Trump, or more likely, his agreeing in advance to accept her endorsement because he's calculated 'any publicity is good publicity.' With that, there actually appears to be some sane people remaining in Congress who have finally concluded that the shit has gotten so out of control, the best solution is to enact legislation through an Emergency Bill To Legalize Marijuana For Those Suffering From CNN Syndrome.

And, of course they're right. If the American public is subjected to crazy news being force-fed to us every time they open an app or turn on the TV, and because the news only gets more crazy, the obvious result is we're all being brainwashed into a state of mass depression and confusion. The antidote for this now national mental health dilemma is already scientifically proven to be a cure. It's called Marijuana. If we have to suffer from the stupidity that is taking place in our Presidential elections, no less suffer from the craziness that is apparently taking place across the world every time we turn on CNN or log in to Google News, that suffering--which takes the form of anxiety and depression--and in turn lead to all kinds of bad outcomes, can be mitigated by self-prescribed use of marijuana.  This is a scientific fact that is based on decades of research done by think tanks across the world; most notably scientists in Israel, who are pretty well known for inventing some pretty serious stuff.

With that, I hereby call upon my old friend Chuck Schumer to immediately advance emergency legislation that has been submitted to your office this very night, and to advocate the passage of federal law that legalizes the possession and use of enough weed to get through every day in which the news is published.

Bernie Madoff

Monday, January 11, 2016

Showtime's #Billions Gets 5 Stars from Bernie

Ok, its been a while. I've been busy catching up on my reading and watching the markets move up and down thanks to the craziness of the world and the never-ending stupidity of how those crazy "hedge funds" are chasing their own tails, and pocketing those management fees. And, laughing out loud reading about Stevie Cohen pulled his latest rabbit out of the hat while watching that new series Billions on Showtime. Its a great show. Hat's off to Andrew Ross Sorkin for leading a team of writers who did a great job of channeling the personalities of all of those A-types billion dollar brats that appear on CNBC Cartoon Channel and channeling them beautifully.

Dear Andrew- If you're looking for another story you might want to produce, click on the link and read the treatment to this one-you'll like it because its based on a true story too...
 I approve of this message. 
Bernie L. Madoff