Wall Street Journal - Madoff Victims Investigated

8/9/2019 Wall Street Journal - Madoff Victims Investigated

1/6

Madoff Victims Investigated - WSJ

http://www.wsj.com/articles/SB124261271530929129[2/10/2015 5:47:27 AM]

LOG IN SUBSCRIBE

The criminal investigation into who knew about Bernard L. Madoff's massive fraud has expanded to include

some of his highest-profile investors, according to people familiar with the matter.

Jeffry Picower and Stanley Chais, two philanthropists who invested heavily with Mr. Madoff, and Carl

Shapiro, one of the money manager's oldest friends, are among at least eight Madoff investors and

associates being scrutinized by the U.S. attorney's office in Manhattan, these people said.

Federal investigators have gathered evidence they think will show that Messrs. Picower and Chais told Mr.

Madoff how much in returns they wanted. Their accounts soon would reflect those amounts, people familiar

with the investigation said.

Prosecutors are continuing to probe Madoff family

members and employees, but the investigation now

includes investors who have claimed to be among the

hardest-hit victims of the fraud, both directly and

through their foundations. Mr. Madoff pleaded guilty in

March and is set to be sentenced in June.

Aiding investigators is their discovery that Mr. Madoff

was a "meticulous" record keeper who kept

correspondence between some clients and the firm, said

people familiar with the probe.

Prosecutors haven't charged any Madoff investors with criminal wrongdoing. A lawyer for Mr. Picower, 67

years old, said his client wasn't complicit in the fraud and suffered losses in the billions. A lawyer for Mr.

Chais, 82, a money manager who channeled West Coast clients to Mr. Madoff's firm, said he was unaware

of a criminal probe of Mr. Chais and his client didn't have knowledge of Mr. Madoff's Ponzi scheme. Mr.

Chais "has cooperated fully" with investigators, the lawyer said. A representative for Mr. Shapiro, 96, said

Mr. Shapiro had no knowledge of the fraud.

Messrs. Picower and Chais already have been accused of

seeking fictitious gains in civil lawsuits brought against

WSJ

BUSINESS

LAW

Madoff Victims InvestigatedCriminal Probe Expands to High-Profile Investors Who Say They Were Stung

Updated May 18, 2009 11:59 p.m. ET

By AMIR EFRATI

Carl Shapiro, a Madoff friend, is among at least

eight individual investors being scrutinized by the

U.S. attorney's office in Manhattan. LUCIEN

CAPEHART PHOTOGRAPHY

VIDEO »

Inside the Madoff Scandal: Chapter One

r

SEARCHMORE

News, Quotes, Companies, Videos Search

https://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html?url=http%3A%2F%2Fwww.wsj.com%2Farticles%2FSB124261271530929129https://subscribe.wsj.com/hpheaderlinkhttp://www.wsj.com/http://www.wsj.com/public/page/news-business-us.htmlhttp://www.wsj.com/public/search?article-doc-type=%7BLaw%7D&HEADER_TEXT=law&mod=flashlinehttp://online.wsj.com/video-center/the-end-of-wall-street.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-one/81AB0844-C32E-4BA8-A97F-FE6543BF1AC9.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-one/81AB0844-C32E-4BA8-A97F-FE6543BF1AC9.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-one/81AB0844-C32E-4BA8-A97F-FE6543BF1AC9.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-one/81AB0844-C32E-4BA8-A97F-FE6543BF1AC9.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-one/81AB0844-C32E-4BA8-A97F-FE6543BF1AC9.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-one/81AB0844-C32E-4BA8-A97F-FE6543BF1AC9.htmlhttp://online.wsj.com/video-center/the-end-of-wall-street.htmlhttp://www.wsj.com/public/search?article-doc-type=%7BLaw%7D&HEADER_TEXT=law&mod=flashlinehttp://www.wsj.com/public/page/news-business-us.htmlhttp://www.wsj.com/http://dj.wsj.com/hub?mod=WSJ_Hathttp://dj.wsj.com/hub?mod=WSJ_Hathttp://www.wsjplus.com/http://www.wsjplus.com/http://online.barrons.com/homehttp://online.barrons.com/homehttp://www.realtor.com/http://www.realtor.com/http://live.wsj.com/http://live.wsj.com/http://www.wsj.com/http://www.wsj.com/https://subscribe.wsj.com/hpheaderlinkhttps://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html?url=http%3A%2F%2Fwww.wsj.com%2Farticles%2FSB124261271530929129


2/6



them by Irving Picard, an attorney at Baker & Hostetler

LLP who is trustee in the bankruptcy liquidation of Mr.

Madoff's firm, Bernard L. Madoff Investment Securities

LLC. As part of his effort to recover assets for Mr.

Madoff's victims, Mr. Picard alleged that Messrs.

Picower and Chais sought -- and then received -- better

returns than thousands of other Madoff investors.

In some cases, their returns reached 300% or 950% a

year, Mr. Picard has alleged. The two men made

withdrawals from Mr. Madoff's firm of more than $6

billion in supposed profits above and beyond the

principal they deposited f or themselves, family members and foundations, the lawsuits allege.

Messrs. Picower and Chais have denied the claims, either directly or through their lawyers. A lawyer for Mr.

Madoff declined to comment on Mr. Picard's allegations or the criminal probe of investors.

Prosecutors are now weighing whether the actions and evidence cited in the civil lawsuits rise to the level of

criminality, according to people familiar with the matter. More broadly, they are reviewing records to see if

certain longtime investors had special access to Mr. Madoff, as well as whether they got specific returns in a

manner that suggests they knew the returns were a fraud.

Among the other Madoff investors and associates whose account records and other information kept by the

Madoff firm are being scrutinized by the government for signs of complicity, according to people familiar

with the matter: Frank Avellino, a Florida accountant who ran an investment fund that channeled client

money to Mr. Madoff; Noel Levine, a real-estate investor who works out of a two-room office located next

door to where Mr. Madoff ran his fraudulent investment operation, on the 17th floor of the Lipstick

Building in Manhattan; and Palm Beach investor Robert Jaffe, a son-in-law of Mr. Shapiro who referred

potential investors to Mr. Madoff.

None of these people have been accused of criminal wrongdoing by the government.

A lawyer for Mr. Avellino declined to comment. Mr. Levine, 89, said he had no knowledge of fraud and that

he and his family lost millions of dollars. A spokesman for Mr. Jaffe said he had no knowledge of the fraud.

A spokeswoman for the U.S. Attorney's office, which has brought criminal charges against only Mr. Madoff,

71, and his outside auditor, declined to comment. The auditor, David Friehling, who also had investments

with Mr. Madoff, is out on bail. His lawyer has declined to comment.

It's unclear why Mr. Madoff would allegedly have given some investors such high returns and why some

investors allegedly made requests for specific gains. Mr. Picard's lawsuit against Messrs. Picower and Chais

doesn't speak to possible motive, only alleging that the defendants knew or should have known they were

POPULAR ON WSJ

VIDEOS

Chapter Two: Unwinding the Money

Trail

MADOFF FRAUD CASE »

Foundation That Is Tied to Madoff Faces Suit

05/13/2009

List of Victims of Madoff Fraud

Complete Coverage: News, victims list,

more

Advertisement

Opinion: The Dangerous

Lie That ‘Bush Lied’1.

As U.S. Exits, China

Takes On Afghanistan

Role

2.

Do You Really Need to

Stay in Bed?3.

Oil-Price Rebound

Predicted 4.

Opinion: Kissinger on

Iran5.

Obama Addresses

Netanyahu Visit1.

NASA Shows Far Side of

Moon as Never Seen

Before

2.

Toilet Care Marketers

Turn to Potty Humor 3.

A New Kind of Jock: Pothead

Ultramarathoners

4.

Grammy Awards 2015:

Best and Worst Fashion5.

http://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://www.wsj.com/articles/SB124215003529811447http://www.wsj.com/articles/SB124215003529811447http://www.wsj.com/articles/SB124215003529811447http://s.wsj.net/public/resources/documents/st_madoff_victims_20081215.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://www.wsj.com/articles/laurence-h-silberman-the-dangerous-lie-that-bush-lied-1423437950?mod=trending_now_1http://www.wsj.com/articles/laurence-h-silberman-the-dangerous-lie-that-bush-lied-1423437950?mod=trending_now_1http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/fighting-the-flu-when-you-need-to-stay-home-and-in-bed-1423504355?mod=trending_now_3http://www.wsj.com/articles/fighting-the-flu-when-you-need-to-stay-home-and-in-bed-1423504355?mod=trending_now_3http://www.wsj.com/articles/demand-for-opec-crude-will-rise-this-year-says-group-1423482563?mod=trending_now_4http://www.wsj.com/articles/demand-for-opec-crude-will-rise-this-year-says-group-1423482563?mod=trending_now_4http://www.wsj.com/articles/kissinger-on-iran-1423527223?mod=trending_now_5http://www.wsj.com/articles/kissinger-on-iran-1423527223?mod=trending_now_5http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/grammy-awards-2015-best-and-worst-fashion/B3E683FC-E5A7-46AF-ABAF-7ED5158C671B.html?mod=trending_now_video_5http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/a-new-kind-of-jock-pothead-ultramarathoners/540E2E9F-D35A-464A-9BE3-E15CD8E605BC.html?mod=trending_now_video_4http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/toilet-care-marketers-turn-to-potty-humor/8F6E198D-214E-46CB-957B-29A1D1385D0B.html?mod=trending_now_video_3http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/nasa-shows-far-side-of-moon-as-never-seen-before/64A6177E-E2FD-4CA7-8B47-747DF595FE65.html?mod=trending_now_video_2http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/video/obama-addresses-netanyahu-visit/55F91B1F-814D-47CF-85E3-D1BD9D4091CE.html?mod=trending_now_video_1http://www.wsj.com/articles/kissinger-on-iran-1423527223?mod=trending_now_5http://www.wsj.com/articles/kissinger-on-iran-1423527223?mod=trending_now_5http://www.wsj.com/articles/kissinger-on-iran-1423527223?mod=trending_now_5http://www.wsj.com/articles/kissinger-on-iran-1423527223?mod=trending_now_5http://www.wsj.com/articles/demand-for-opec-crude-will-rise-this-year-says-group-1423482563?mod=trending_now_4http://www.wsj.com/articles/demand-for-opec-crude-will-rise-this-year-says-group-1423482563?mod=trending_now_4http://www.wsj.com/articles/demand-for-opec-crude-will-rise-this-year-says-group-1423482563?mod=trending_now_4http://www.wsj.com/articles/demand-for-opec-crude-will-rise-this-year-says-group-1423482563?mod=trending_now_4http://www.wsj.com/articles/fighting-the-flu-when-you-need-to-stay-home-and-in-bed-1423504355?mod=trending_now_3http://www.wsj.com/articles/fighting-the-flu-when-you-need-to-stay-home-and-in-bed-1423504355?mod=trending_now_3http://www.wsj.com/articles/fighting-the-flu-when-you-need-to-stay-home-and-in-bed-1423504355?mod=trending_now_3http://www.wsj.com/articles/fighting-the-flu-when-you-need-to-stay-home-and-in-bed-1423504355?mod=trending_now_3http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/as-u-s-exits-china-takes-on-afghanistan-role-1423539002?mod=trending_now_2http://www.wsj.com/articles/laurence-h-silberman-the-dangerous-lie-that-bush-lied-1423437950?mod=trending_now_1http://www.wsj.com/articles/laurence-h-silberman-the-dangerous-lie-that-bush-lied-1423437950?mod=trending_now_1http://www.wsj.com/articles/laurence-h-silberman-the-dangerous-lie-that-bush-lied-1423437950?mod=trending_now_1http://www.wsj.com/articles/laurence-h-silberman-the-dangerous-lie-that-bush-lied-1423437950?mod=trending_now_1http://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/public/page/bernard-madoff.htmlhttp://s.wsj.net/public/resources/documents/st_madoff_victims_20081215.htmlhttp://www.wsj.com/articles/SB124215003529811447http://www.wsj.com/articles/SB124215003529811447http://www.wsj.com/articles/SB124215003529811447http://online.wsj.com/public/page/bernard-madoff.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.htmlhttp://online.wsj.com/video/inside-the-madoff-scandal-chapter-two/27203456-BA44-409C-9C44-9C8211E47009.html


3/6



"reaping the benefits" of "manipulated purported returns, false documents and fictitious reports."

Originally from the New York City borough of the Bronx, Mr. Chais for many years lived as a money

manager in Beverly Hills, Calif. He invested substantial client funds with Mr. Madoff. He now lives in New

York.

Accounts of Mr. Chais and his family averaged annual returns of 40% with Mr. Madoff, and as much as

300%, Mr. Picard alleged. Mr. Chais also requested fictitious losses from Mr. Madoff's firm, apparently to

offset gains he made through other investments in order to avoid taxes, Mr. Picard alleged. Mr. Chais's

foundation, wiped out in the scandal, had $178 million in assets as of 2007.

In a letter to clients about Mr. Picard's suit, Mr. Chais said it was filled with "inaccuracies." Eugene Licker, a

lawyer for Mr. Chais, said Mr. Chais is extremely ill, suffering from a blood disorder.

Mr. Picower, who lives in Palm Beach, Fla., and Manhattan, is a lawyer, accountant and investor who led

buyouts of health-care and technology companies. Mr. Picower's foundation, heavily invested with Mr.

Madoff, at one point stated its investment portfolio was valued at nearly $1 billion.

Mr. Picower and his wife, Barbara, had two dozen accounts with Mr. Madoff and received annual returns of

more than 100% in 14 instances, reaching as high as 950%, Mr. Picard alleged.

Correspondence between Mr. Picower or one of his employees and the Madoff firm suggests complicity, Mr.

Picard alleged. In May 2007, for example, a foundation employee named April Freilich requested gains on

Mr. Picower's behalf, according to the suit. The Madoff firm then recorded purported trades in his account

as having occurred in January and February 2006, according to the lawsuit. That and similar moves in May

2007 netted Mr. Picower $55 million in fictitious gains, the suit alleged.

William Zabel, a lawyer for Mr. Picower, his wife and his foundation, said they were "totally shocked" by

Mr. Madoff's fraud and "were in no way complicit in it." He said they and their foundation, now closed, lost

billions of dollars. Mr. Zabel, who also represents Ms. Freilich, declined to comment on her behalf.

Federal investigators are reviewing evidence that they think suggests Mr. Shapiro also knew his returns were

fraudulent, according to people familiar with the matter. Unlike Messrs. Picower and Chais, Mr. Shapiro, a

women's clothing entrepreneur, was never in the finance business. He is one of Mr. Madoff's oldest friends

and biggest financial backers and helped Mr. Madoff start his investment firm in 1960.

In 1971, Mr. Shapiro sold a clothing brand for about $20 million. Over the years, that sum grew to hundreds

of millions of dollars and some say more than $1 billion, the vast majority of it from Mr. Madoff, according

to people close to Mr. Shapiro.

Mr. Shapiro personally lost an estimated $400 million from the fraud, including $250 million invested with

Mr. Madoff 10 days before the fraud collapsed, said people familiar with the matter. His foundation lost

more than $100 million.

—Robert Frank contributed to this article.

Write to Amir Efrati at [email protected]

mailto:[email protected]:[email protected]


4/6



IN THE LAB BUSINESS CFO JOURNAL BUSINESS

EDITORS’ PICKS

SHARE YOUR THOUGHTS

Log in to comment

ARCHIVED COMMENTS

|

LIAM DANIELS

I know nothing about investments, but if I I give you a dollar every year and you give me back two, I am gonna

like it at f irst. Then I am gonna ask myself how you do it. Then I will have to make a choice on whether I want

your returns or not anymore, for something is clearly wrong.

Waterboard him, put the confession on youtube. It ought to have more impact on the "investment world" than any

other act or piece of legislation ever passed. End of story.

chris decker

If you want to see something interesting look at the IRS 990 filings for Picower Foundation. The documentation

shows a long term stock strategy and nothing close to the Madoff split-strike strategy. Despite the stealing, I

think these guys all tried to justify the stealing by giving it away. These foundations like Shapiro and Picower did

a lot of good but it was with other people's money. Now all the beneficiaries will have to return the money

including such institutions as MIT (Picower) and the Harvard affiliated hospitals (Shapiro). Note, the 990's also

show where the money paid out went annually. While people like Picower might have been stealing it was highly

unlikely it was directly through the foundations. Picower sketchy background and actions were cited in a 2002

Forbes article; wouldn't doubt that he was involved. http://www.forbes.com/forbes/2002/1014/068_print.html

Also even back in the early 90's when A&Bienes accountants were running their scam millions were being paid

out. While all the A&B investors not only got all their investments back they must have also been paid their

returns prior to that either via being reinvested or direct. Over $400 mil was returned to investors that had been

generating approx. 13-18% annual returns for at least 5-10 yrs prior implying $millions would have had to be

gathered from others. Thus Madoff was already running a large Ponzi scheme by 1992. The SEC was clearly

asleep at the wheel at the ti me because they never bothered to audit the actual returns that had been paid out to

these investors.

Newest

Jun 14, 2009

May 25, 2009

There are 36 comments.

Newest Oldest

https://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html?url=http%3A%2F%2Fwww.wsj.com%2Farticles%2FSB124261271530929129http://www.forbes.com/forbes/2002/1014/068_print.htmlhttp://www.forbes.com/forbes/2002/1014/068_print.htmlhttps://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html?url=http%3A%2F%2Fwww.wsj.com%2Farticles%2FSB124261271530929129


5/6



A Warning From the Heart of Malaria

Research

Europe’s Budget Car Brands Gaining

Share

Career Booster for CFOs: Work

Experience Abroad

The Holy Grail of Welding

A-HED

Ads for Bathroom Products Flush With

Potty Humor

AFRICA NEWS

Kenyan Crackdown Stokes Anger,

Militancy

MIDDLE EAST NEWS

A Photographer’s Return to Kobani

WORLD

Justice for Abused Hong Kong Maid

http://www.wsj.com/articles/a-warning-from-the-heart-of-malaria-research-1423506898?mod=WSJ_article_EditorsPicks_0http://www.wsj.com/articles/a-warning-from-the-heart-of-malaria-research-1423506898?mod=WSJ_article_EditorsPicks_0http://www.wsj.com/articles/europes-budget-car-brands-keep-gaining-share-1423530772?mod=WSJ_article_EditorsPicks_1http://www.wsj.com/articles/europes-budget-car-brands-keep-gaining-share-1423530772?mod=WSJ_article_EditorsPicks_1http://www.wsj.com/articles/career-booster-for-cfos-work-experience-abroad-1423527358?mod=WSJ_article_EditorsPicks_2http://www.wsj.com/articles/career-booster-for-cfos-work-experience-abroad-1423527358?mod=WSJ_article_EditorsPicks_2http://www.wsj.com/articles/the-holy-grail-of-welding-steel-aluminum-1423528185?mod=WSJ_article_EditorsPicks_3http://www.wsj.com/articles/ads-for-bathroom-products-flush-with-potty-humor-1423529356?mod=WSJ_article_EditorsPicks_4http://www.wsj.com/articles/ads-for-bathroom-products-flush-with-potty-humor-1423529356?mod=WSJ_article_EditorsPicks_4http://www.wsj.com/articles/kenyan-crackdown-stokes-anger-militancy-1423528776?mod=WSJ_article_EditorsPicks_5http://www.wsj.com/articles/kenyan-crackdown-stokes-anger-militancy-1423528776?mod=WSJ_article_EditorsPicks_5http://www.wsj.com/articles/a-photographers-return-to-kobani-1423501954?mod=WSJ_article_EditorsPicks_6http://www.wsj.com/video/justice-for-abused-hong-kong-maid/76BA944A-B907-4360-BB39-C265772DBDF3.htmlhttp://www.wsj.com/video/justice-for-abused-hong-kong-maid/76BA944A-B907-4360-BB39-C265772DBDF3.htmlhttp://www.wsj.com/video/justice-for-abused-hong-kong-maid/76BA944A-B907-4360-BB39-C265772DBDF3.htmlhttp://www.wsj.com/video/justice-for-abused-hong-kong-maid/76BA944A-B907-4360-BB39-C265772DBDF3.htmlhttp://www.wsj.com/articles/a-photographers-return-to-kobani-1423501954?mod=WSJ_article_EditorsPicks_6http://www.wsj.com/articles/a-photographers-return-to-kobani-1423501954?mod=WSJ_article_EditorsPicks_6http://www.wsj.com/articles/a-photographers-return-to-kobani-1423501954?mod=WSJ_article_EditorsPicks_6http://www.wsj.com/articles/kenyan-crackdown-stokes-anger-militancy-1423528776?mod=WSJ_article_EditorsPicks_5http://www.wsj.com/articles/kenyan-crackdown-stokes-anger-militancy-1423528776?mod=WSJ_article_EditorsPicks_5http://www.wsj.com/articles/kenyan-crackdown-stokes-anger-militancy-1423528776?mod=WSJ_article_EditorsPicks_5http://www.wsj.com/articles/kenyan-crackdown-stokes-anger-militancy-1423528776?mod=WSJ_article_EditorsPicks_5http://www.wsj.com/articles/ads-for-bathroom-products-flush-with-potty-humor-1423529356?mod=WSJ_article_EditorsPicks_4http://www.wsj.com/articles/ads-for-bathroom-products-flush-with-potty-humor-1423529356?mod=WSJ_article_EditorsPicks_4http://www.wsj.com/articles/ads-for-bathroom-products-flush-with-potty-humor-1423529356?mod=WSJ_article_EditorsPicks_4http://www.wsj.com/articles/ads-for-bathroom-products-flush-with-potty-humor-1423529356?mod=WSJ_article_EditorsPicks_4http://www.wsj.com/articles/the-holy-grail-of-welding-steel-aluminum-1423528185?mod=WSJ_article_EditorsPicks_3http://www.wsj.com/articles/the-holy-grail-of-welding-steel-aluminum-1423528185?mod=WSJ_article_EditorsPicks_3http://www.wsj.com/articles/the-holy-grail-of-welding-steel-aluminum-1423528185?mod=WSJ_article_EditorsPicks_3http://www.wsj.com/articles/career-booster-for-cfos-work-experience-abroad-1423527358?mod=WSJ_article_EditorsPicks_2http://www.wsj.com/articles/career-booster-for-cfos-work-experience-abroad-1423527358?mod=WSJ_article_EditorsPicks_2http://www.wsj.com/articles/career-booster-for-cfos-work-experience-abroad-1423527358?mod=WSJ_article_EditorsPicks_2http://www.wsj.com/articles/career-booster-for-cfos-work-experience-abroad-1423527358?mod=WSJ_article_EditorsPicks_2http://www.wsj.com/articles/europes-budget-car-brands-keep-gaining-share-1423530772?mod=WSJ_article_EditorsPicks_1http://www.wsj.com/articles/europes-budget-car-brands-keep-gaining-share-1423530772?mod=WSJ_article_EditorsPicks_1http://www.wsj.com/articles/europes-budget-car-brands-keep-gaining-share-1423530772?mod=WSJ_article_EditorsPicks_1http://www.wsj.com/articles/europes-budget-car-brands-keep-gaining-share-1423530772?mod=WSJ_article_EditorsPicks_1http://www.wsj.com/articles/a-warning-from-the-heart-of-malaria-research-1423506898?mod=WSJ_article_EditorsPicks_0http://www.wsj.com/articles/a-warning-from-the-heart-of-malaria-research-1423506898?mod=WSJ_article_EditorsPicks_0http://www.wsj.com/articles/a-warning-from-the-heart-of-malaria-research-1423506898?mod=WSJ_article_EditorsPicks_0http://www.wsj.com/articles/a-warning-from-the-heart-of-malaria-research-1423506898?mod=WSJ_article_EditorsPicks_0


6/6



Subscribe / Login Back to Top

Customer Service

Customer Center

New! Live Help

Contact Us

WSJ Weekend

Contact Directory

Corrections

Policy

Privacy Policy

Cookie Policy

Data Policy

Copyright Policy

Subscriber Agreement

& Terms of Use

Your Ad Choices

Ads

Adver tise

Place a Classified Ad

Sell Your Home

Sell Your Business

Commercial Real Estate Ads

Recruitment & Career Ads

Franchising

Adver tise L ocall y

Tools & Features

Apps

Emails & Alerts

Graphics & Photos

Columns

Topics

Guides

Portfolio

Old Portfolio

More

Register for Free

Reprints

Content Partnerships

Conferences

SafeHouse

Mobile Site

News Archive

Jobs at WSJ Copyright ©2015 Dow Jones & Company, Inc. All Rights Reserved.
https://subscribe.wsj.com/hpheaderlinkhttps://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html?url=http%3A%2F%2Fwww.wsj.com%2Farticles%2FSB124261271530929129http://help.wsj.com/customer-service/?mod=WSJ_footerhttps://customercenter.wsj.com/view/contactus.html?mod=WSJ_footerhttp://www.subscribe.wsj.com/getweekendnow?mod=WSJ_footerhttps://customercenter.wsj.com/view/ctdir/contactdirectory.html?mod=WSJ_footerhttp://www.wsj.com/news/column/Corrections?mod=WSJ_footerhttp://www.wsj.com/public/page/privacy-policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/cookie-policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/data-policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/copyright_policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/subscriber_agreement.html?mod=WSJ_footerhttp://www.wsj.com/public/page/subscriber_agreement.html?mod=WSJ_footerhttp://www.wsj.com/public/page/cookie-policy.html?mod=WSJ_footer#cookies_advertisinghttp://www.wsjdigital.com/?mod=WSJ_footerhttp://classifieds.wsj.com/?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Residential-Real-Estate-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Business-For-Sale-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Commercial-Real-Estate-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Job-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Franchise-For-Sale-Ads?mod=WSJ_footerhttp://www.wsjlocal.com/?mod=WSJ_footerhttp://www.wsj.com/public/page/designtech-wsjModuleHome.html?mod=WSJ_footerhttp://www.wsj.com/public/page/email-setup.html?mod=WSJ_footerhttp://www.wsj.com/public/page/news-interactive-features-trends.html?mod=WSJ_footerhttp://www.wsj.com/page/columnists.html?mod=WSJ_footerhttp://topics.wsj.com/?mod=WSJ_footerhttp://www.wsj.com/public/page/guides.html?mod=WSJ_footerhttp://portfolio.wsj.com/?mod=wsj_port_foothttp://ds.wsj.com/wsjportfolio/portfolio?cmd=mainwindow&mod=wsj_portold_foothttps://id.wsj.com/access/509b1a086458232f6e000002/latest/register_standalone.htmlhttp://www.djreprints.com/?mod=WSJ_footerhttp://wsj.com/partner/?mod=WSJ_footerhttp://www.wsj.com/conferences?mod=WSJ_footerhttps://www.wsjsafehouse.com/http://m.wsj.com/http://www.wsj.com/public/page/archive.htmlhttp://www.dowjones.com/careers.asp?mod=WSJ_footerhttp://www.dowjones.com/careers.asp?mod=WSJ_footerhttp://www.wsj.com/public/page/archive.htmlhttp://m.wsj.com/https://www.wsjsafehouse.com/http://www.wsj.com/conferences?mod=WSJ_footerhttp://wsj.com/partner/?mod=WSJ_footerhttp://www.djreprints.com/?mod=WSJ_footerhttps://id.wsj.com/access/509b1a086458232f6e000002/latest/register_standalone.htmlhttp://ds.wsj.com/wsjportfolio/portfolio?cmd=mainwindow&mod=wsj_portold_foothttp://portfolio.wsj.com/?mod=wsj_port_foothttp://www.wsj.com/public/page/guides.html?mod=WSJ_footerhttp://topics.wsj.com/?mod=WSJ_footerhttp://www.wsj.com/page/columnists.html?mod=WSJ_footerhttp://www.wsj.com/public/page/news-interactive-features-trends.html?mod=WSJ_footerhttp://www.wsj.com/public/page/email-setup.html?mod=WSJ_footerhttp://www.wsj.com/public/page/designtech-wsjModuleHome.html?mod=WSJ_footerhttp://www.wsjlocal.com/?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Franchise-For-Sale-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Job-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Commercial-Real-Estate-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Business-For-Sale-Ads?mod=WSJ_footerhttps://classifieds.wsj.com/ad/Residential-Real-Estate-Ads?mod=WSJ_footerhttp://classifieds.wsj.com/?mod=WSJ_footerhttp://www.wsjdigital.com/?mod=WSJ_footerhttp://www.wsj.com/public/page/cookie-policy.html?mod=WSJ_footer#cookies_advertisinghttp://www.wsj.com/public/page/subscriber_agreement.html?mod=WSJ_footerhttp://www.wsj.com/public/page/subscriber_agreement.html?mod=WSJ_footerhttp://www.wsj.com/public/page/subscriber_agreement.html?mod=WSJ_footerhttp://www.wsj.com/public/page/copyright_policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/data-policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/cookie-policy.html?mod=WSJ_footerhttp://www.wsj.com/public/page/privacy-policy.html?mod=WSJ_footerhttp://www.wsj.com/news/column/Corrections?mod=WSJ_footerhttps://customercenter.wsj.com/view/ctdir/contactdirectory.html?mod=WSJ_footerhttp://www.subscribe.wsj.com/getweekendnow?mod=WSJ_footerhttps://customercenter.wsj.com/view/contactus.html?mod=WSJ_footerhttp://help.wsj.com/customer-service/?mod=WSJ_footerhttps://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html?url=http%3A%2F%2Fwww.wsj.com%2Farticles%2FSB124261271530929129https://subscribe.wsj.com/hpheaderlinkhttps://itunes.apple.com/us/app/the-wall-street-journal./id364387007?mt=8http://www.wsj.com/public/page/rss_news_and_feeds.html?mod=WSJ_footerhttp://www.wsj.com/public/page/podcast.html?mod=WSJ_footerhttp://www.youtube.com/user/WSJDigitalNetworkhttps://plus.google.com/117720626238470886461/postshttps://foursquare.com/wsjhttp://www.linkedin.com/today/online.wsj.comhttp://twitter.com/WSJhttp://www.facebook.com/wsjhttp://www.wsj.com/?mod=WSJDE_footer

Wall Street Journal - Madoff Victims Investigated

Documents

Transcript of Wall Street Journal - Madoff Victims Investigated