FBI Diverts Anti-Terror Agents to Bernard Madoff $50 Billion Swindle

The Times (UK) ^ | 12/23/08 | Suzy Jagger

[marshmallow]

The FBI has been forced to transfer agents from its counter-terrorism divisions to work on Bernard Madoff’s alleged $50 billion fraud scheme as victims of the biggest scam in the world continue to emerge.

Only ten days after Mr Madoff confessed to his two sons that he had created a giant fraud, the FBI and the Securities and Exchange Commission (SEC), the Wall Street regulator, have narrowed the focus of their inquiries to ascertain which individuals and funds helped him. They are questioning other employees of Madoff Securities and are also examining the role of feeder funds that provided Mr Madoff with clients and capital.

It is understood that the US authorities believe it would have been impossible for the financier to have sustained a fraud of such magnitude over a number of years without significant assistance.

While the FBI and SEC trawled through documentation seized from three floors of the Manhattan headquarters of Mr Madoff, 70, more individuals and organisations who had fallen prey to the scheme were discovered. Members of the Fifth Avenue Synagogue, on the wealthy Upper East Side of Manhattan, are estimated to have lost about $2 billion (£1.4 billion) between them. Of these Ira Rennert, the chairman of the synagogue board, had about $200 million invested in the fund.

It is believed that J. Ezra Merkin, the president of the synagogue, introduced clients to Mr Madoff and gave him access to prominent Jewish charities and universities. The fund of Mr Merkin, Ascot Partners, had about $1.8 billion invested in the schemes.

At the weekend it emerged that Burt Ross, a former banker at LF Rothschild, and once the mayor of Fort Lee, New Jersey, was another victim. Mr Ross estimated that he had lost about $5 million, the bulk of his personal wealth.

[marshmallow]

Bernie bin Laden........last seen hiding out on Park Avenue....LOL

Didn't the real bin Laden say that his goal was to destroy Wall Street? Looks like our Bernie might have saved him the trouble.

[Doogle]

..whats more important...the nation or the liberal feed bag?

[Dr. Ursus]

Madoff is under indictment for what the U.S.Govt has been
doing for the past 30 years! I guess he who makes the rules-
Rules.

[TommyDale]

Yeah, I’m sure solving a swindle case for greedy investors is much more important than protecting against terrorism. Wise use of FBI Anti-Terror agents!! /sarcasm

[Condor51]

Members of the Fifth Avenue Synagogue, on the wealthy Upper East Side of Manhattan, are estimated to have lost about $2 billion (£1.4 billion) between them. Of these Ira Rennert, the chairman of the synagogue board, had about $200 million invested in the fund. ... It is believed that J. Ezra Merkin, the president of the synagogue, introduced clients to Mr Madoff and gave him access to prominent Jewish charities and universities. The fund of Mr Merkin, Ascot Partners, had about $1.8 billion invested in the schemes. .... At the weekend it emerged that Burt Ross, a former banker at LF Rothschild,

Oh-oh. Suzy Jagger and The Times (UK) better watch out. Abe Foxman and his ADL will be after her and The Times (UK). According Foxman all reporting of Madoff and the fellow Jews he ripped off in anti-semitic Nazi Hate Speech. And in the UK this 'Hate Speech' is against the law. (iirc)

Drudge had the Foxman rant (article) linked the past few days (gone today).

[TigerLikesRooster]

Who knows? Bernie could turn out to be the first Jewish recruit for Al Qaeda./sarc

[Doogle]

adding, the government has to “investigate” so it will get covered up....the ever present phrase “under investigation” to cloud up, (or adjust the dots as dots followers are familiar with). People would be questioned, money trails and tax evasion....*gasp* we can't have any scandal, all the greed must be hidden, all the wrong doings of “influential people” would be known..*tsk tsk*. The government MUST control what the citizenship is told.
This has all the trappings of a Zoros operation....you can't have that much money floating around and not expect the head money man not to be involved. Madoff did it all on his own....ok, yeah right.

[SueRae]

And yet, this guy is on house arrest. worse yet, yesterday mornng’s Bloomberg tcker said something on the order of ‘Madoff agrees to have assets frozen” WTF??? Why even aks?

And the crooks keep doing this because we don’t serve them with CONSEQUENCES!!! A little Turkish justice could go a long way. And add Frank, Dodd, Kerry, Shumer,...etc. to that list.. /rant off/

[marshmallow]

LOL.....

[SueRae]

‘aks’ should obviously be ‘ask’. (Good grief)

[Just mythoughts]

ping

[Doogle]

....is yet another government “commission” far behind to investigate the wrong doings?. Let's see, lets have Barney and Chris co-chair that special investigation into what really happen...now don't you feel as though they did their part to help you?

[YOUGOTIT]

What is more important protecting the American People from terror or some multi million rocks from their own loss of money? They lost it because they did not diversify and check on their investor. So that is the way it goes.
Get after the terrorist not the money lounger's.

[fso301]

It is understood that the US authorities believe it would have been impossible for the financier to have sustained a fraud of such magnitude over a number of years without significant assistance.

Someone should come up with a new unicode character for understatement. An understatement emoticon would also be a good thing at times like this.

[fso301]

Yeah, I’m sure solving a swindle case for greedy investors is much more important than protecting against terrorism. Wise use of FBI Anti-Terror agents!! /sarcasm

I suspect the fund was only partially ponzi and the resulting investigation may reveal who was behind oil price speculation as well as the massive shorting of investment banks that created the October Surprize.

[ladyjane]

Actually the resulting investigation may reveal that a lot of money got transferred off shore in a massive tax evasion scheme.

[fso301]

Actually the resulting investigation may reveal that a lot of money got transferred off shore in a massive tax evasion scheme.

That too!

[TommyDale]

I have a question: If trillions of dollars were lost, who gained them? Where are they? There must be a balance sheet somewhere.

[Liz]

….Suzy Jagger and The Times (UK) better watch out. Abe Foxman and his ADL will be after her and The Times (UK)......

Spit---that ain‘t gonna happen no-how.

Even Madoff is not enough to drag Big Abe away from the $5.95 all-you-can-eat buffet table at Old Homestead.

[Liz]

Members of the Fifth Avenue Synagogue, on Manhattan's wealthy Upper East Side are estimated to have lost about $2 billion among them. Ira Rennert, synagogue board chair, had about $200 million invested w/Madoff.

Fifth Avenue Synagogue board chair Ira Rennert’s palatial Hamptons mansion....rivals Buckingham Palace or Versailles.

Hamptonites complain the astoundingly huge lavish property is actually a "synagogue-residence-school" for Orthodox students.