Posted on 12/21/2009 3:29:55 PM PST by FromLori
One of Len Blavatnik's companies lost $98 million in a $1 billion portfolio invested with JPM.
It's not our fault! They say. So they're suing JPM.
CMMF claims that when JPMorgan was retained in May 2006, it was given broad discretion in how it invested the funds but its goal was to “provide a high level of current income consistent with low volatility,” explains Francesco Guerrera at the Financial Times.
The two sides disagree on how JPM allocated the funds. Blavatnik says JPM wrongly invested 46% of his company's money in asset backed securities. "Wrongly" because, his side argues, their agreement was to cap CMMF's investment in the risky assets at 20%.
Originally the lawsuit brought four claims against JPM. The court dismissed two of them - breach of fiduciary duty and negligence.
The judge has agreed to hear the two remaining claims - breach of contract and negligent misrepresentation.
And JPM says they will fight the case "vigorously."
(Excerpt) Read more at businessinsider.com ...
ping
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html
http://www.nytimes.com/2009/07/19/business/19dimon.html
If you’ve got $1 billion to invest, maybe you should do the job yourself?
At least you’ll have only yourself to blame.
I don’t think it was a good idea to put it all in one place. He might have been better off if he used four or five different firms.
It really wouldn’t have mattered. Any firm you picked, with instructions like that, would have lost money. I think limiting the capital loss to only 10% shows JPM invested the money relatively conservatively. There were many structured high-income vehicles advertised as ‘safe’ that lost more than 50%.
JP Morgan Chase runs second to the pond scum at Goldman Sachs. JPM has a better rep as not being so money grubbing. Deserved or not that is their reputation.
Jamie Dimon is also less grasping. Not being paid mega-bucks so 0bama regime likes him. But plenty of GS men in 0bama-land
Yes and the government sachs paids obama plenty too
http://www.opensecrets.org/orgs/list.php?order=A
http://www.vanityfair.com/online/politics/2009/12/goldman-goldman-everywhere.html
http://www.vanityfair.com/online/politics/2009/12/goldman-goldman-everywhere.html
http://www.americanthinker.com/2009/07/will_dems_allow_goldman_to_man.html
http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/
Client probably bailed at the bottom too.
I’ve been 20% with JPM for over a decade.
Was -5% at the bottom.
That 20% has never been ahead of the other 80%.
20% equities if that wasn’t clear.
Thats how some people lost all their money with Madoff indirectly. They chose a few of these financial management companies who then invested with Madoff due to his great returns.
Take into consideration that Madoff was running simultaneous scams-----(1) a Ponzi fraud, (2) money laundering, (3) IRS fraud facilitation, and, (2) a protection racket (shielding certain investors from scrutiny).
The court appointed trustee looking into Madoff's assets unearthed a labyrinth of interrelated international funds, institutions and entities of almost unparalleled complexity and breadth...... and assets and businesses in 11 places overseas.
No question, tax evasion and money laundering was the name of the game for the wealthiest Madoffians-----businessmen who were funneling income to Madoff to avoid US taxes, who were posing as "philanthropists."
FOR EXAMPLE The tax-exempt Picower Foundation took out an astounding 950% profit......depositing $1.6 billion with Madoff, and withdrawing more than $6.7 billion, for a net profit of $5.1 billion. Picower had arranged the rate of return beforehand.
Jeffry Picower was a seldom-seen philanthropist, investor and confidant of Madoff. Now a lawyer representing 100 Madoff victims suggests it was no accident that Picower was one of the few Madoff customers who made a substantial profit.
While coverage of Picower has been scant, on various occasions, The St. Petersburg Times, Forbes, and, most recently, Pro Publica, have raised the question of whether Picower used his tax-exempt "charities" to mine information—especially about the medical developments-----that he then used in chasing deals. For example, Picower was the biggest shareholder in Alaris Medical Systems and collected more than $1 billion when it was bought by Cardinal Health in 2004. (snip) http://www.thedailybeast.com/blogs-and-stories/2009-06-25/did-bernie-madoff-get-a-billion-dollar-kickback/full/
Authorities should go after The Florida-based Picower Foundation, worth $1 billion AND a major backer of the abortion industry.
Barbara and Jeffrey Picower
The Picower Foundation
1410 South Ocean Blvd
Palm Beach, Fla 33480
Tele 561-835-1332
Geographic Focus: Florida; New York;
SOURCE http://www.tgci.com/funding/fdnresultnew.asp?thisID=19499
-------------------------------------
REFERENCE The number of tax-exempt "foundations and charities" attached to Madoff's scam is VERY fishy. NOTE: the IRS has targeted tax-exempt "foundations and charities" as the locus classicus for money laundering and tax evasion. The BIGGEST fraud is one charity writing checks to another charity---the way these "altruistic philanthropists" siphon off funds for themselves--all tax-free.
Naftali Tzi Weisz, 61, the Brooklyn, N.Y.-based grand rabbi of the Spinka sect, pleaded guilty to conspiracy in August for his part in a scheme in which people made tax-exempt donations to charitable organizations and were later reimbursed for up to 95% of their contributions. The ruse allowed contributors to claim bogus tax deductions, even though most of their money was funneled back to them via international transfers, overseas accounts and an elaborate underground banking network that wound through Los Angeles' downtown jewelry district, according to authorities. In addition to Weisz, other religious leaders and businessmen have been convicted of taking part in the scheme and sentenced to prison terms ranging from four months to two years. The plot was revealed through an informant, wiretaps and hidden cameras, prosecutors said. Authorities say the return of laundered donations is rarely detected and difficult to prosecute because the groups involved are often secretive. ..... The head of an Orthodox Jewish sect was sentenced to two years in prison Monday for a tax evasion and money-laundering scheme that continued over a decade, spanned two continents, and cost taxpayers millions of dollars in lost revenue, authorities said.
Madoff musta been giving tax evasion seminars. Read on.
February 22, 2006
Scam artist laundered millions through fictitious companies; claimed to head a US-based tax-exempt charity raising money for a school in Israel.
Israeli emigre to the US, Abie Moskowitz, ran his tax fraud scheme like a well-oiled corporation. Moskowitz enlisted friends and relatives who owned businesses and persuaded them to write his checks under the guise of deductible expenses. He then laundered the money through bank accounts of fictitious companies he created, retrieved the cash, repaid his financiers and kept his cut. In just three years, Moskowitz and his cohorts were able to divert and conceal more than $8.6 million, some of which he squirreled away in accounts in Israel.
Moskowitz admitted as much when he pleaded guilty to fraud, tax and money-laundering charges before a US District Judge. The 56-year-old Brooklyn man was the last, and most significant, of the 12 defendants to plead guilty in a long-running fraud network that prosecutors suspect might have stolen millions more.
The case dated back nearly five years. A bank employee noticed irregular activity in some accounts and notified the FBI. Agents from the IRS and US Postal Service later joined the probe to help unravel an intricate web of shell companies and fraudulent tax returns.
Moskowitz emigrated from Israel to the US in 1965. He laimed to be part owner of Sea Jet Trucking/APA Warehouse Inc, a commercial shipping and storage company, until he sold his share around 2000, authorities said. He also owned a piece of American Poly Inc, a Brooklyn-based commercial packaging company. And he claimed to be president of Mosdot Nardvorna Mamar Mordechai, a US-based tax-exempt Jewish charity raising money for a school in Israel.
But it was shell businesses with names like Jersey York Baking and Madison Financial and Gateway, that made him rich, authorities said. Moskowitz admitted laundering money through the fictitious companies' bank accounts and mailing more than $378,000 to an unidentified contact in Israel. He acknowledged that he failed to report $1.9 million in personal income for the tax years 1998, 1999 and 2000 and owed more than $600,000 in income tax.
In the past two years, 11 other defendants have pleaded guilty to lesser charges in the Moskowitz scheme. Among them was Moskowitz's son, Sholom Moskowitz. Most were members of the close-knit Brooklyn Jewish community where Moskowitz lives and is well known, the prosecutor said.
Madoff, 71, was transferred from the medium security prison facility to Butner’s medical facility on Dec. 18, Catherine Elsea, a spokeswoman for the medical center said in a statement. Elsea declined to say why Madoff was transferred. Citing a person briefed on the matter, the New York Times reported yesterday that Madoff was under observation for dizziness and high blood pressure. “It could be one of a few things,” said Herbert J. Hoelter, a prison consultant who advised Madoff. “They do surgical procedures if there’s a need for that.” Hoelter, a cofounder and chief executive officer of the National Center on Institutions and Alternatives in Baltimore, said the medical center at Butner is a full-service hospital, which is equipped to provide emergency services, surgery, psychiatric care and cancer treatments. ..... Bernard Madoff, the con man who operated the biggest Ponzi scheme in history, has been moved to the Federal Medical Center at the Butner Federal Correctional Complex in Butner, North Carolina.
Madoff, Wall Street’s Toll on Hungry Starts at 100,000 Meals - BL, 2009 December 24, by Patrick Cole
Five days later, the foundation sent an e-mail saying the check wasn’t coming because its investments had been wiped out in the $65 billion Ponzi scheme orchestrated by Bernard Madoff, one of its money managers. That check represented more than 15,500 meals. Madoff is serving a 150-year sentence for masterminding the scheme. Citymeals, which delivers meals to the elderly, also lost donors employed at Bear Stearns & Co. and Lehman Brothers Holdings Inc., both of which went bankrupt. Last year, Citymeals had a $4 million deficit, and sagging donations have kept its budget flat this year at $18 million while demand for its meals has increased. Last December, Marcia Stein, the executive director of Citymeals-on-Wheels, got a call from Barbara Picower saying her Picower Foundation would be giving the New York food charity $100,000.
I guess the widow Picower has to do some shopping and get her nails and hair done.
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