MERKIN TO FACE COURTS (GMAC chair got $6B bailout--fed Madoff via several hedge funds)

NY POST ^ | 5/8/09 | Copyright Reuters. All rights reserved.

[Liz]

REUTERS A lawsuit charges hedge-funder Ezra Merkin "knew or should have known" that Madoff was a fraud, and seeks $500M from Merkin's funds. Merkin's Gabriel Capital Corp. received $tens of millions in fees from deals with Madoff. Stanley Chais of California was charged last Friday. Microsoft's wholly owned affiliate, Microsoft Licensing GP, one of the pioneers in the field of computerized stock trading, joined the Bankruptcy Court case against Madoff, but declined to discuss its claims against the swindler.

[Liz]

While he was GMAC chairman, J Ezra Merkin ran several hedge funds as a sideline and was feeding funds into Madoff's Ponzi operation (pocketing hundreds of $millions in fees).

MERKIN'S CAYMAN ISLAND HEDGE FUND Merkin was feeding funds to Madoff via 1) Ariel Fund, based in the Cayman Islands (an infamous money laundering haven--a partnership between Merkin and London's Fortis Bank), (2) Ascot Partners, (3) general partner of Gabriel Capital LP, a $5 billion family of hedge funds, and, (4) managing partner of Gotham Capital.

FEDERAL RESERVE A FACTOR IN BAILOUTS AND SWINDLES? Madoff swindled $65B and had financial connections to bailouts J Ezra Merkin and Stephen Fineberg (auto industry). Could mean the bailed out connivers were stealing Federal Reserve insider info.

Fineberg tapped ex-Treasury Secy John Snow to head Cerebrus. Knowing Federal Reserves moves in advance would make zillions for the thieves...........on top of the billions they were swilling elsewere. These termites were running rampant over the US government---Merkin and Feinberg's auto companies received billions in govt bailouts.

BAILOUT SWILLERS Federal Reserve's Bernanke, Treasury Secy Paulson, GMAC's J. Ezra Merkin---salivating to divvy up the taxpayers' billions. Americans have not yet learned the full extent of official corruption, thievery, schemes and scams involving $TRILLIONS of tax dollars aided and abetted by the dupes on Capitol Hill.

TIMELINE On October 19, 2006, John W. Snow, Secretary of the Treasury under George H.W. Bush, was named head of Stephen A. Fineberg's bailed out company---Cerebrus. Feinberg'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.

BAILOUT SWILLERS Stephen A. Fineberg's private equity firm---Cerberus Capital Management LP--- also owns Chrysler Motors. The US Treasury bought a $5 billion stake in GMAC, and lent $1 billion to GM. This latest loan is IN ADDITION to the $13.4 billion the US Treasury lent earlier to J Ezra Merkin's GM, and Fineberg's Chrysler.

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

HOGGING AT THE PUBLIC TROUGH 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.

Chrysler/Cerebrus’ Fineberg and GMAC/ Merkin-----co-own an Israeli bank-----debark from anywhere in the world, deposit a suitcase full of case and nobody asks where your got it, or if taxes were paid on it. Stash all the loot you can carry ......out of sight of the IRS and US banking laws.

[Liz]

Stanley Chais tops Madoff's speed dial entry....as a longtime money manager and Bernie's close friend on the Palm Beach country club circuit. Chais must have known about the disgraced financier's multibillion-dollar Ponzi scheme, a complaint filed in Bankruptcy Court claims. Chais said the swindle wiped out the Chais Family Foundation, which made millions of dollars in annual contributions to various Jewish charges.

THE RELIGIOUS, SOCIAL, AND BUSINESS LABYRINTH
(4800 INVESTORS) MADOFF USED TO RAKE IN BILLIONS.

MAP IS INTERACTIVE AT WEB SITE

WEB SITE http://news.muckety.com/2008/12/28/madoff-used-social-family-networks-to-rake-in-billions/9031

CHAIS FEEDER FUND Brighton Co Investments is headed by Stanley Chais, a Beverly Hills "philanthropist" who served on "charitable" boards with Madoff. Chais (pronounced Chase) told the Jewish Journal of Los Angeles that he personally invested with Madoff but also "facilitated" others who wished to do likewise. However, spokesmen for the SEC and the California Dept of Corporations said they could find no record of Chais registering as an investment advisor or a broker.

Stanley Chais offers remarks at the Weizmann Institute of Science.

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

Chais said the Madoff swindle wiped out the Chais Family Foundation, which made millions of dollars in annual contributions to various Jewish charges.

If Chais took out any monies from the Madoff operation that went into the Chais Family Foundation, the money has to be returned so that it can be redistributed to the investors swindled by Madoff. Comes under the legal principle of "fraudulent conveyance"....means one cannot legally profit from a fraud.

[Hildy]

If one cannot legally profit from a fraud, wouldn’t EVERY SINGLE MADOFF investor have to give money back?

[Cincinatus]

Look up the definition of the word “merkin” on Google.

[randog]

...wouldn’t EVERY SINGLE MADOFF investor have to give money back?

They get a pass for snitching on their bookie.

[Liz]

If one cannot legally profit from a fraud, wouldn’t EVERY SINGLE MADOFF investor have to give money back?

Investors who took money out have to return it (some just rolled it over).

Claw & Disorder, NY Post | May 3, 2009 | James Doran
FR Posted May 04, 2009 PM by CutePuppy

Hundreds of victims of Ponzi scamster Bernie Madoff are spitting mad at Irving Picard, the court-appointed trustee of Madoff's estate, over what they claim is the capricious way he is moving to clawback money.

The group of 350 victims claims: * Picard -- whose job is to collect as much of the $23 billion lost during the decades-long Madoff fraud -- is demanding repayment from victims facing an "undue hardship," even though he promised not to do so. * The trustee refuses to speak with them when they reach out to him with questions or problems * They are being shortchanged on any possible insurance recovery because Picard is using the money people originally invested ($23 billion) instead of final, fraudulent account balances (an amount Madoff claimed totaled $65 billion).

"We have already lost everything we had to Madoff," said Debbie Brown, one of more than 200 victims who recently got a letter from Picard demanding the return of monies she withdrew from her Madoff account over the years. "To find out that they want to clawback hundreds of thousands of dollars we no longer have is just terrible," said the 49-year-old woman, whose parents opened the account for her when she was a young girl. "I don't know what we are going to do."

Brown, an administrative assistant married to an auto mechanic, with two kids of college age, was stunned last month to receive the letter from Picard demanding more than $440,000 she withdrew from her accounts over the years. She used much of the money to pay for her daughter's tuition. (Excerpt) Read more at nypost.com ...

[Liz]

Don’t hafta——we already know what it means.

[bert]

Perhaps the Brown woman should take in laundry. If she spent 400 grand on one daughter she should get busy making some $$ for the other two

[Liz]

The court won’t just take her word for it. A court of law requires proof-—receipts, bills, cancelled checks, etc-—as to where she spent the $400K.

[Hildy]

HOW DARE YOU. 400,000 over the years is not a ton of money and it was money she believed to be legally gained from an account she had for years. There’s no way these people should have to give back money now. After Madoff’s family is stripped bare, come talk to me again. This is outrageous and unAmerican. When you invest your money, you believe in the system of oversight. This whole story stinks from the top down. THE GOVERNMENT DROPPED THE BALL and now they want the investors to pay back? Give me a break.

[dfwgator]

Look up the definition of the word “merkin” on Google.

I wouldn't advise doing an image search on it, while at work.

[dfwgator]

For the P1 Freepers in Dallas:

[Liz]

Rothschild avoided Madoff because “we couldn’t get the visibility we wanted,” referring to the lack of information that was available on Madoff’s investment process.

Heh----very astute guy. I wonder what Madoff thought about Rothschild brushing him off? And what he told his investors about the brushoff?

[CutePuppy]

Probably didn’t like being brushed off too much but not too worried either. Europe was substantial part of his scheme, and he could lose investors if they asked Rothschild for reference, but that would be highly unlikely.

Rothschild had no reason to advertise the fact that he rejected or was even approached by Madoff, and Madoff was not going around telling people about those who rejected his thinly disguised supposed front-running “service”.

After all, the recruiting tactic was telling everybody about the ones who already belonged to this very exclusive “investment club”. And they had plenty of “whales” and politicians to vouch for that, and many more that wanted to belong.

We only recently started to find out about those who rejected Madoff, because now it’s being advertised like a Good Housekeeping Seal of approval.