NY TO PROBE MADOFF-LINKED HEDGE FUND MANAGER (swilling at the federal tax trough)

NY POSY=T ^ | 1/16/09 | STAFF

[Liz]

...... US investigators want to know whether hedge fund operator J. Ezra Merkin misled tax-exempt schools and charities about how he invested their money....... authorities have subpoenaed records from three investment funds run by Merkin, who recently chaired GMAC Financial Services LLC, the auto/housing financing arm of General Motors..... 15 tax-exempt nonprofits tied to Merkin are asked to turn over records and other information. Merkin's key fund, Ascot Partners LP, had invested almost all of its $1.5B assets with Madoff. Merkin's funds Gabriel, Ascot, and Ariel Management Corp, already face a string of lawsuits from investors who say they were misled. The organizations subpoenaed for records include Yeshiva University, New York Law School, the United Jewish Appeal-Federation of NY, Carnegie Hall, the Rabbi Isaac Elchanan Theological Seminary and Bard College's Levy Economic Institute. Not all of the 15 organizations lost money with Madoff, but many had been advised on investments by Merkin, who was involved in many tax-exempt philanthropic causes. ........state investigators want to know what Merkin told investors about how he was managing their money, and whether he disclosed Madoff's involvement.

[Liz]

SWILLING AT THE FEDERAL TAX TROUGH---Everything For Us, Nothing For You

MERKIN'S CAYMAN ISLAND HEDGE FUND GMAC Chair Merkin had a couple hedge funds as a sideline and was feeding funds into Madoff's operation and pocketing hundreds of $millions in fees-----Merkin's name is connected to (1) Ariel Fund, based in the Cayman Islands (an infamous money laundering haven), (2) Ascot Partners, (3) general partner of Gabriel Capital LP, a $5 billion family of hedge funds, and, (4) managing partner of Gotham Capital.

At the time of his hedge fund shenanigans, Merkin was GMAC Chair (an auto-and home-financing company that got a $6B US bailout). Many felt Merkin could not be trusted with $6B federal rescue money GMAC received. Merkin resigned as GMAC chair last week.

Bernanke, Paulson, Merkin---salivating to divvy up the taxpayers' billions. Americans have not yet learned the full extent of official corruption, thievery, schemes and scams involving $BILLIONS of tax dollars aided and abetted by the dupes on Capitol Hill.

REFERENCE Merkin also served as Chairman of the Yeshiva University Investment Committee (forced out in the Madoff scandal). Merkin invested Yeshiva University money in Madoff's operation. Yeshiva University is a huge complex and Orthodox stronghold---it maintains four campuses in New York City and a campus in Israel: along with dormitories, a library, a hospital and other medical facilities; several Graduate and Professional Schools, rabbinical schools, a museum, academic centers and institutes for high school level students, and centers for Israeli studies in New York, and in Israel, etc, etc, etc. Merkin and Madoff served together on the board of Yeshiva University, where Merkin Chaired the Investment Committee and Madoff was treasurer; Madoff also chaired the Sy Syms' School of Business (Syms is a prominent retailer who frequently funds PBS programs).

CONNECTIONS CONNECTIONS CONNECTIONS Merkin's family is connected to the highest levels of the Israeli government through his mother, Ursula, who immigrated to Palestine in 1933 with her father Isaac Breuer. Merkin's father, Hermann, was a fur-trader who became director of the Israel Discount Bank of New York...the bank the US leaned on for money laundering misdeeds. JUST A THOUGHT Sy Sims is a director at the Israel Discount Bank since 1991. US regulators fined the Israel Discount Bank of New York $12 million for violating federal and state laws designed to thwart money laundering. The Israel Discount Bank of New York (controlled by the mega-rich Bronfman’s) had failed to set up an adequate program to identify and report money laundering, according to federal and state US regulators. A substantial part of $35.4 billion in third-party wire transfers during the year ended March 2005 showed traits common to laundering operations, the US complaint said. According to The Jerusalem Post’s November 2, 2006 edition, the scale of money-laundering going on at The Israel Discount Bank of New York was much larger than the infamous Brazil case reported extensively in the NY Times. NOTE Israel Discount Bank opened a branch in Switzerland in 2000.

CONNECTIONS CONNECTIONS CONNECTIONS Then-GMAC chair, Merkin, and Stephen A. Feinberg, bought Bank Leumi from the Israeli government for $500 million. Fineberg's private equity firm---Cerberus Capital Management LP--- also owns Chrysler Motors. The US Treasury is now buying a $5 billion stake in GMAC and lending $1 billion to GM. This latest loan is IN ADDITION to the $13.4 billion the US Treasury lent earlier to Merkin's GM and Fineberg's Chrysler.

TIMELINE In 2006, GM sold 51 percent of Merkin's GMAC to Feinberg's private equity firm Cerberus Capital Management LP (which also owns Chrysler).

TIMELINE In May 2004, Feinberg's "private investment group," Cerberus Capital Management, LP (Cerebrus is the three-headed dog that guards Hades), became majority owner of IAP Worldwide Services, Inc., one of the US Army’s largest contractors in Iraq. In Afghanistan, Feinberg's IAP runs a drug/addiction center" in Kunduz---Kunduz is the largest opium supplier in the world. BUSY LITTLE BEAVER IAP also provides infrastructure support for the British Ministry of Defence in Kandahar....apart from supporting the US Army in Basra.

TIMELINE On October 19, 2006, John W. Snow, Secretary of the Treasury under George H.W. Bush, was named chairman of Cerberus.

TIMELINE On Dec 30, 2008, the US Treasury reported it will provide $6 billion more for GMAC, then-headed by Merkin. The Treasury is now reportedly buying a $5 billion stake in GMAC and lending $1 billion to GM. The latest "loan" is in addition to $13.4 billion the Treasury lent earlier to GM and Chrysler LLC. GM sold 51 percent of GMAC in 2006 to Feinberg's private equity firm Cerberus Capital Management LP, which also owns Chrysler.

THE FEDERAL FEEDBAG Fineberg's IAP also serves a broad array of federal clients including the US DOD, NASA, the US Geological Survey, the US Agency for International Development, the IRS, and a variety of other federal agencies.

SWILLING AT THE FEDERAL TAX TROUGH--Everything For Us, Nothing For You.

[the invisib1e hand]

Don’t stop with Mr. Merkin.

[mewzilla]

I wonder if they're going after the guy because he donated to Pubbies as well as 'Rats. I see Hillie and UpChuck returned his money after it was donated.

Now why did Hillie and UpChuck Schumer return the money before this spit hit the fan...

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT
08/28/2008 -2300.00 28992231598

SCHUMER, CHARLES E
VIA FRIENDS OF SCHUMER
07/08/2003 -2000.00 23020451416

Inquiring minds want to know what Hillie and Scumer knew about Madoff and when they knew it...

[goldi]

I heard on the radio this morning that it might just be possible that Madoff NEVER made a trade — never invested his clients’ money in anything. If that’s true, how could he have gotten away with that for so long?

[Grampa Dave]

You remind me of the best hunting dogs.

Once they get the scent of their prey, they don’t stop searching.

Keep up the work.

[Grampa Dave]

Of course being the honest rats they are, they would never use dirty laundried money.

[Grampa Dave]

tax-exempt nonprofits tied to Merkin are asked to turn over records and other information. Merkin’s key fund, Ascot Partners LP, had invested almost all of its $1.5B assets with Madoff. Merkin’s funds Gabriel, Ascot, and Ariel Management Corp, already face a string of lawsuits from investors who say they were misled. The organizations subpoenaed for records include Yeshiva University, New York Law School, the United Jewish Appeal-Federation of NY, Carnegie Hall, the Rabbi Isaac Elchanan Theological Seminary and Bard College’s Levy Economic Institute. Not all of the 15 organizations lost money with Madoff, but many had been advised on investments by Merkin, who was involved in many tax-exempt philanthropic causes. ........state investigators want to know what Merkin told investors about how he was managing their money, and whether he disclosed Madoff’s involvement.”

Will the Zer0 allow this investigation to continue after he is crowned as Supreme Leader, FDRII, next week.

[iopscusa]

Liz, just in case you were wondering, be assured this is the greatest of compliments from Grampa Dave, ‘You remind me of the best hunting dogs’. LOLs and Happy Trails to you, the intersection of crooks and free money on WS is the Happy Hunting grounds for such as Liz!

[razorback-bert]

Will the Zer0 allow this investigation to continue after he is crowned as Supreme Leader, FDRII, next week

I think so, too many big D supporters were burned and are screaming for blood.

[Liz]

Will the Zer0 allow this investigation to continue after he is crowned as Supreme Leader, FDRII, next week.........

Keep in mind, Obaba's most dedicated supprters---Black churchgoers----do not like these shenanigans.

Obaba has catered to his Black churchgoer-constituency. For instance----Obaba came out against gay marriage. Black churchgoers vehmently oppose gay marriage---it is a paramount issue with them---some even switched their votes to Republicans in earlier elections for that reason.

It would behoove web crawlers to keep Black churchgoers on top of these issues......so that Obaba will be pressured by his supporters.....

(he's not going to listen to us that's for sure).

[Liz]

FACTS TO DATE Madoff was examined at least eight times in the last 16 years by the SEC, and other regulators. It is impossible to believe no wrongdoing was ever found.....in light of cascading news reports about the shady----even amateurish---business methods Madoff used: (1) telling savvy successful multi-millionaiore businessmen/investors they could not access financial details; (2) Madoff sending out poorly-constructed financial reports, (3) having a one-man, far-off accounting firm for his huge operation; (4) consistent investment gains even in down markets.

More likely fraud was staring L/E in the face but was NEVER ACTED UPON due to the status, power and influence Madoff wielded.

Even more disturbing, the very same people he was scamming rushed to Madoff's defense whenever fraud issues were raised. One financier who sounded the alarm a few years back was accused of being anti-Semitic..... by Madoff's investors.

Clearly, Madoff's investors who waved off investigations using the anti-Semite banner have obstructed and delayed US justice and played a huge role in advancing the Madoff scam. Madoff himself might have encouraged the anti-Semite allegation b/c he knew it would forestall examination of his fraudulent operation.

BACKGROUND The now-famous 2005 Markopolis Report to the SEC raised the fraud issues and yet news stortoes report the SEC "turned a blind eye." It must be noted that the SEC backed-off investigating Madoff NOT because they are incompetent, but because SEC investigators risked losing their jobs if they zeroed in on Madoff.

CAREER KILLER In the ranks of L/E, it is NOT advisable to imply people of Jewish heritage are doing something illegal---even moreso, it is a career killer to suggest it. FBI agents have been lacerated and condemned----even losing their jobs. Madoff's concentrating his efforts on religious-affinity investors certainly validates this---Madoff seemed to know L/E dared not suggest he was doing something illegal.

This no-no applies to all facets of government. Cascading stories of mega-wealthy Madoff investors living lives of luxury inside posh gated communities coast-to-coast, must be especially painful---b/c the US Census Bureau was asked to stop reporting its findings that Jewish-Americans are the nation's wealthiest.

Politicians at these sham Capitol Hill hearings are implicitly defending the scam---(not asking the right questions is a cover-up). Pols fear losing the big buck campaign donations and voting blocs they assiduously court.

NEEDS TO BE DONE NOW Investigators should demand all records detailing the number of times and places Madoff's investors played the anti-Semitic card to wave off investigations of Madoff. Americans need to know how many times Madoff investors caused L/E investigators to lose their jobs for going after Madoff. Madoff investors who colluded to obstruct and delay US justice played a huge role in advancing the Madoff scam.

Law enforcement is looking at the legal parameters of prosecutable crimes including collusion, making false statements to federal officials, obstructing proceedings before federal agencies, conspiracy, and obstructing and delaying US justice.........all felonies.

[Liz]

Woof.

[goldi]

My cousin’s husband was an attorney with the SEC a couple of years ago. I asked him over the holidays about Madoff but he just made general statements and didn’t go into detail. I can see why — probably afraid of saying anything to anyone that might follow him to his new job.

This story is absolutely incredible, and we’ll probably never know how deep the rot is. Absolutely disgusting on all levels, from the fraud itself to the phony hearings with the softball questions.

[Liz]

NOTE FReeper Calpernia has come up with invaluable info on these subjects.

FACTS ON FILE GMAC chair, Merkin, and Stephen A. Feinberg, bought Bank Leumi from the Israeli government for $500 million. Fineberg's private equity firm---Cerberus Capital Management LP--- also owns Chrysler Motors.

NOTE WELL Feinberg's "private investment group," Cerberus Capital Management, LP (Cerebrus is the three-headed dog that guards Hades), became majority owner of IAP Worldwide Services, Inc., one of the US Army’s largest contractors in Iraq. Fineberg's IAP also serves a broad array of federal clients including the US DOD, NASA, the US Geological Survey, the US Agency for International Development, the IRS and a variety of other federal agencies.

The US Treasury is now buying a $5 billion stake in GMAC and lending $1 billion to GM. This latest loan is IN ADDITION to the $13.4 billion the US Treasury lent earlier to Merkin's GM and Fineberg's Chrysler.

THE IRS--SPITZER CONNECTION Mark Brener, Cliffside Park, New Jersey is the 62-year-old indicted alleged mastermind of the Emperors Club VIP which supplied prostitutes to Spitzer and a worldwide clientele. News reports said Brener was apparently certified by the IRS to represent taxpayers in disputes. It was also reported Brener worked for the Israeli national tax collection agency. That raises enormous questions about offshore money laundering, IRS fraud and evasion of US banking laws---and the facilitation of johns embezzling for their high-priced trysts with prostitutes.

The Emperor’s Club is/was an international operation and may have been run as an “escort service” as a front to launder embezzled money and the poceeds of financial (and perhaps government) fraud in order to evade US banking laws, the FEC, the IRS and the SEC.

When he was nabbed, an Israeli passport and $600,000 in cash were found in Brener's New Jersey apartment. This is significant since Israel is the only country in the world where an individual can alight from a plane, go to a bank with a suitcase full of cash and no one ask where it comes from. US autorities say most of the suitcase money going into Israeli banks emanates from the US as a result of criminality.

Brener was well-traveled. He lived in New Jersey, and had 50 prostitutes available in New York, Washington, Miami, London and Paris, according to a complaint unsealed on Thursday in Federal District Court in Manhattan. The hooker appointments, made by telephone or through an online booking service, cost $1,000 to $5,500 an hour and could be paid for with cash, credit card, wire transfers or money orders, the complaint said. Wire transfers would facilitate individuals embezzlinr monies tolaunder money and evade the SEC, IRS and US banking laws.

============================================

The most interesting thing about Spitzer's prosecutions as NYAG wasn’t who he went after, but the people to whom he turned a blind eye.” Why were Hedge Funds with main offices in NYC, off limits for his investigations?

FOR EXAMPLE George Fox is the president of hedge fund, Titan Advisors - and Spitzer's ally on Wall Street. The hedge-fund manager has donated $140,000 to Spitzer's campaigns for governor and state attorney general going back to 1998, campaign-disclosure records show. He travels in the most well-heeled circles, once rubbing elbows with movie mogul Harvey Weinstein, Cablevision CEO Jim Dolan and actress Bernadette Peters at a $2 million fund-raiser for Spitzer, where he applauded the governor's efforts on behalf of Wall Street investors.

Fox's firm, Titan Advisors, was founded more than 16 years ago, according to its Web site. The site trumpets the firm's "longstanding relationships with some of the world's most sought-after asset managers."

Fox began his career as a floor trader at the Coffee, Sugar and Cocoa Exchange and the Commodity Exchange in 1984, according to his biography. He moved on to create his own hedge-fund advisory firm in 1992. He rolled his $650 million business into Titan in 2001.

Spitzer revealed he lost money with Madoff----did Fox invest with Madoff?

[Grampa Dave]

“Liz, just in case you were wondering, be assured this is the greatest of compliments from Grampa Dave, ‘You remind me of the best hunting dogs’. LOLs and Happy Trails to you, the intersection of crooks and free money on WS is the Happy Hunting grounds for such as Liz!”

Thanks. It was meant as a compliment.

[Liz]

I prefer “Digital Detective” (grin).

[Calpernia]

>>>...and may have been run as an “escort service”...

And more...like Kushner...blackmailing people with escorts. Video taping. Importing boyfriends for state homeland security offices....lots more.

And all those social security numbers that are minable from 200 years ago. They run for President, they collect state pensions, they vote, they bundle campaign monies, they run paper front businesses, they own HUD properties...oh the life of a phantom, very lucrative.