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 informationespecially 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
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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.