DOCSLIB.ORG

08-01789-Smb Doc 18151 Filed 11/01/18 Entered 11/01/18 18:04:08 Main Document Pg 1 of 2

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
08-01789-Smb Doc 18151 Filed 11/01/18 Entered 11/01/18 18:04:08 Main Document Pg 1 of 2 08-01789-smb Doc 18151 Filed 11/01/18 Entered 11/01/18 18:04:08 Main Document Pg 1 of 2 November 1, 2018 Stacey A. Bell direct dial: 212.589.4632 [email protected] VIA ECF Honorable Stuart M. Bernstein United States Bankruptcy Court Southern District of New York One Bowling Green, Room 723 New York, New York 10004-1408 Re: Securities Investor Protection Corporation v. Bernard L. Madoff Investment Securities LLC, Adv. Pro. No. 08-01789 (SMB) Dear Judge Bernstein: We are counsel to Irving H. Picard, trustee (the “Trustee”) for the substantively consolidated liquidation of Bernard L. Madoff Investment Securities LLC and the chapter 7 estate of Bernard L. Madoff under the Securities Investor Protection Act, 15 U.S.C. § 78aaa et seq. We write in response to the Court’s November 1, 2018 request to the Trustee for copies of the deposition transcripts of Bernard L. Madoff in connection with the Trustee’s Motion for Limited Additional Discovery Based on Prior Orders Authorizing Deposition of Bernard L. Madoff filed Sept. 21, 2018. See ECF No. 18015. To that end, we are filing herewith the following transcripts: Exhibit A: Transcript of Deposition of Bernard L. Madoff dated April 26, 2017 Exhibit B: Transcript of Deposition of Bernard L. Madoff dated April 27, 2017 Exhibit C: Transcript of Deposition of Bernard L. Madoff dated November 8, 2017 Exhibit D: Transcript of Deposition of Bernard L. Madoff dated November 9, 2017 The deposition transcript of Bernard L. Madoff dated December 20, 2016 was previously filed on June 26, 2017. See ECF No. 16237, Ex. I. 1 08-01789-smb Doc 18151 Filed 11/01/18 Entered 11/01/18 18:04:08 Main Document Pg 2 of 2 The deposition transcripts of Bernard L. Madoff referenced herein are no longer confidential pursuant to the orders authorizing the deposition of Bernard L. Madoff. See ECF Nos. 14213, 14905, 16625. Respectfully submitted, /s/ Stacey A. Bell Stacey A. Bell Partner 2 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 1 of 254 Exhibit A 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 2 of 254 Page 1 CONFIDENTIAL 1 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK 2 3 In re: ) 4 ) SECURITIES INVESTOR ) 5 PROTECTION CORPORATION, ) ) 6 Plaintiff-Applicant, ) ) 7 vs. ) 08-01789 (SMB) ) 8 BERNARD L. MADOFF ) INVESTMENT SECURITIES, LLC, ) 9 ) Defendant. ) 10 ) ) 11 In re: ) ) 12 BERNARD L. MADOFF, ) ) 13 Debtor. ) ) 14 15 16 Videotaped Deposition of BERNARD L. 17 MADOFF, VOLUME I, taken on behalf of the Customers, 18 before K. Denise Neal, Registered Professional 19 Reporter and Notary Public, at the Federal 20 Correctional Institution, 3000 Old Highway 75, 21 Butner, North Carolina, on the 26th day of April, 22 2017, commencing at 9:07 a.m. 23 24 * * * * * 25 Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 3 of 254 CONFIDENTIAL Page 2 1 APPEARANCES OF COUNSEL: 2 On Behalf of the Customers: 3 HELEN DAVIS CHAITMAN, Esq. 4 Chaitman, LLP 5 465 Park Avenue 6 New York, New York 10022 7 (908) 303-4568 8 [email protected] 9 10 On Behalf of the Trustee: 11 DAVID J. SHEEHAN, Esq. 12 AMANDA E. FEIN, Esq. 13 Baker Hostetler 14 45 Rockefeller Plaza 15 New York, New York 10111-0100 16 (212) 589-4621 17 [email protected] 18 19 On Behalf of the Deponent: 20 PETER A. GOLDMAN, Esq. 21 12 Fairlawn Parkway 22 Rye Brook, New York 10573 23 (914) 935-6857 24 [email protected] 25 Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 4 of 254 CONFIDENTIAL Page 3 1 APPEARANCES OF COUNSEL: 2 Videographer: 3 Ken Morrison, CLVS 4 5 * * * * * 6 7 CONTENTS 8 THE WITNESS: BERNARD L. MADOFF EXAMINATION 9 BY MS. CHAITMAN 6 10 BY MR. SHEEHAN 132 11 12 * * * * * 13 14 INDEX OF EXHIBITS 15 FOR THE CUSTOMERS: PAGE 16 Exhibit Number 15, Copies of Bloomberg 38 17 trade tickets 18 Exhibit Number 16, JPMorgan Chase 52 19 statement - 2-2001 20 Exhibit Number 17, 703 account statement 58 21 - 6-2001 22 Exhibit Number 18, JPMorgan Chase 60 23 statement - 10-2002 24 Exhibit Number 19, JPMorgan Chase 61 25 statement - 12-2003 Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 5 of 254 CONFIDENTIAL Page 4 1 INDEX OF EXHIBITS (Continued) 2 FOR THE CUSTOMERS: PAGE 3 Exhibit Number 20, JPMorgan Chase 61 4 statement - 12-2004 5 Exhibit Number 21, JPMorgan Chase 62 6 statement 7 Exhibit Number 22, Bear Stearns statement 64 8 - 8-1-05 9 Exhibit Number 23, Documents - composite 67 10 Exhibit Number 24, Morgan Stanley statement 70 11 Exhibit Number 25, JPMorgan Chase position 72 12 summary 13 Exhibit Number 26, Fidelity statement - 73 14 1-31-99 15 Exhibit Number 27, Clothmasters statement 74 16 - 8-31-91 17 Exhibit Number 28, Account Canada document 75 18 Exhibit Number 29, Appendix to Dubinsky 92 19 report 20 Exhibit Number 30, Copies of correspondence 94 21 Exhibit Number 31, Bill Feingold expert 109 22 report 23 24 * * * * * 25 Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 6 of 254 CONFIDENTIAL Page 5 1 THE VIDEOGRAPHER: My name is Ken Morrison 2 representing Veritext Legal Solutions. The date 3 today is April 26th, 2017 and the time is 9:07 a.m. 4 This is the deposition being held at Butner Federal 5 Correctional Facility located at 3000 Old 75 6 Highway, Butner, North Carolina 27509 and is taken 7 by counsel for the Plaintiffs in the case of 8 Securities Investor Protection Corporation, 9 Plaintiff-Applicant, versus Bernard L. Madoff 10 Investment Securities, LLC, Defendant. 11 This case is being held in the United 12 States Bankruptcy Court, Southern District of New 13 York, Case Number Adversary Proceeding 08-01789 14 (SMB). The name of the witness is Bernard L. 15 Madoff. At this time would the attorneys present in 16 the room identify themselves and the parties you 17 represent and then our court reporter, Denise Neal, 18 representing Veritext Legal Solutions, will swear in 19 the witness and we can proceed. 20 MS. CHAITMAN: Helen Davis Chaitman on 21 behalf of a great number of claw-back Defendants. 22 And, in fact, I'm taking the deposition. It's not 23 the Trustee who's taking it. 24 MR. SHEEHAN: Right. 25 MR. GOLDMAN: Peter A. Goldman. I Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 7 of 254 CONFIDENTIAL Page 6 1 represent Bernard Madoff. 2 MR. SHEEHAN: David J. Sheehan with Baker 3 Hostetler, counsel to the Trustee. 4 MS. FEIN: Amanda Fein, Baker Hostetler, 5 for the Trustee. 6 (The witness was duly sworn by the court 7 reporter.) 8 MR. GOLDMAN: Keep your voice up. 9 BERNARD L. MADOFF, 10 having been first duly sworn, was examined and 11 testified as follows: 12 EXAMINATION 13 BY MS. CHAITMAN: 14 Q. Good morning, Mr. Madoff. 15 A. Good morning. 16 Q. Irving Picard has argued to Judge Bernstein 17 that you're not a credible witness and I want to ask 18 you a few questions about that. At the time you 19 confessed on December 11th, 2008 had you been 20 indicted? 21 A. No. 22 Q. At the time you confessed was there a 23 criminal investigation against you? 24 A. No. 25 Q. At the time you confessed was there an SEC Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 8 of 254 CONFIDENTIAL Page 7 1 investigation against you? 2 A. No. 3 Q. At the time you confessed was there any 4 limitation on your ability to transfer funds? 5 A. No. 6 Q. At the time you confessed was there any 7 limitation on your ability to travel abroad? 8 A. No. 9 Q. So is it fair to say that you had the 10 option of taking a couple of hundred million dollars 11 and moving with your wife to Switzerland and living 12 out your life in Switzerland the way Mark Rich did? 13 A. I'm -- 14 MR. SHEEHAN: Objection to form. Let's 15 get this geared up because I don't want to 16 interrupt. I apologize. So I'm just going to say 17 objection. When I say that, it means as to form. 18 That's it. 19 MS. CHAITMAN: Okay. 20 MR. SHEEHAN: But just to preserve. 21 MS. CHAITMAN: Sure, sure. 22 MR. SHEEHAN: Okay. All right. I'll shut 23 up. 24 MS. CHAITMAN: I'm going to rephrase the 25 question because I was rudely interrupted. Veritext Legal Solutions 212-267-6868 www.veritext.com 516-608-2400 08-01789-smb Doc 18151-1 Filed 11/01/18 Entered 11/01/18 18:04:08 Exhibit A Pg 9 of 254 CONFIDENTIAL Page 8 1 (Laughter on the record.) 2 MR.
Load more

Recommended publications
  • Special Committee Report
    REPORT OF THE 2009 SPECIAL REVIEW COMMITTEE ON FINRA’S EXAMINATION PROGRAM IN LIGHT OF THE STANFORD AND MADOFF SCHEMES SEPTEMBER 2009 SPECIAL REVIEW COMMITTEE Charles A. Bowsher (Chairman) ———————————— Ellyn L. Brown ———————————— Harvey J. Goldschmid ———————————— Joel Seligman ———————————— INDUSTRY GOVERNOR ADVISERS OF COUNSEL Mari Buechner Paul V. Gerlach W. Dennis Ferguson Griffith L. Green G. Donald Steel Dennis C. Hensley Michael A. Nemeroff SIDLEY AUSTIN LLP 1501 K Street, NW Washington, DC 20005 TABLE OF CONTENTS I. EXECUTIVE SUMMARY .............................................................................................. 1 A. The Stanford Case................................................................................................. 2 B. The Madoff Case................................................................................................... 4 C. Recommendations................................................................................................. 6 II. BACKGROUND ON FINRA EXAMINATION PROGRAM...................................... 9 III. EXAMINATIONS OF MEMBER FIRMS INVOLVED IN THE STANFORD AND MADOFF SCANDALS.................................................................. 11 A. The Stanford Case............................................................................................... 12 1. Background............................................................................................... 12 2. Daniel Arbitration and 2003 Cycle Examination...................................... 13 3. 2003
    [Show full text]
  • The Madoff Investment Securities Fraud: Regulatory and Oversight Concerns and the Need for Reform Hearing Committee on Banking
    S. HRG. 111–38 THE MADOFF INVESTMENT SECURITIES FRAUD: REGULATORY AND OVERSIGHT CONCERNS AND THE NEED FOR REFORM HEARING BEFORE THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION ON HOW THE SECURITIES REGULATORY SYSTEM FAILED TO DETECT THE MADOFF INVESTMENT SECURITIES FRAUD, THE EXTENT TO WHICH SECURITIES INSURANCE WILL ASSIST DEFRAUDED VICTIMS, AND THE NEED FOR REFORM JANUARY 27, 2009 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html U.S. GOVERNMENT PRINTING OFFICE 50–465 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 08:33 Jul 07, 2009 Jkt 048080 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\DOCS\50465.TXT JASON COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS CHRISTOPHER J. DODD, Connecticut, Chairman TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama JACK REED, Rhode Island ROBERT F. BENNETT, Utah CHARLES E. SCHUMER, New York JIM BUNNING, Kentucky EVAN BAYH, Indiana MIKE CRAPO, Idaho ROBERT MENENDEZ, New Jersey MEL MARTINEZ, Florida DANIEL K. AKAKA, Hawaii BOB CORKER, Tennessee SHERROD BROWN, Ohio JIM DEMINT, South Carolina JON TESTER, Montana DAVID VITTER, Louisiana HERB KOHL, Wisconsin MIKE JOHANNS, Nebraska MARK R. WARNER, Virginia KAY BAILEY HUTCHISON, Texas JEFF MERKLEY, Oregon MICHAEL F. BENNET, Colorado COLIN MCGINNIS, Acting Staff Director WILLIAM D.
    [Show full text]
  • Individual Factors: Moral Philosophies and Values 153
    CHAPTER 6 B E L L , F E L E C I A 2 0 INDIVIDUAL FACTORS:9 MORAL PHILOSOPHIES5 AND VALUES B U ©Stanislav Bokrach,©Stanislav Shutterstock Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. CHAPTER OBJECTIVES CHAPTER OUTLINE t To understand how moral philosophies and Moral Philosophy Defined values influence individual and group ethical Moral Philosophies decision making in business Instrumental and Intrinsic Goodness To compare and contrast the teleological, t Teleology deontological, virtue, and justice perspectives of moral philosophy B Deontology E Relativist Perspective t To discuss the impact of philosophies Virtue Ethics on business ethics L Justice t To recognize the stages of cognitive moral L development and its shortcomings , Applying Moral Philosophy to Ethical Decision Making t To introduce white-collar crime as it relates Cognitive Moral Development to moral philosophies, values, and corporateF culture White-Collar Crime E Individual Factors in Business Ethics L E AN ETHICAL DILEMMA* C One of the problems that Lael Matthews has had to to promoting Liz might be a perception that Lael is deal with in trying to climb the corporate ladder is I playing favorites. the glass ceiling faced by minorities and women. AndA Roy is a 57-year-old Caucasian, married with now, in her current position, she must decide which three children, who graduated from a private of three managers to promote, a decision that, as university in the top half of his class.
    [Show full text]
  • October 30, 2013 Tenth Interim Report
    08-01789-brl Doc 5554 Filed 10/30/13 Entered 10/30/13 16:52:26 Main Document Pg 1 of 107 Baker & Hostetler LLP 45 Rockefeller Plaza New York, New York 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Seanna R. Brown Email: [email protected] Heather R. Wlodek Email: [email protected] Attorneys for Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (BRL) Plaintiff-Applicant, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. TRUSTEE’S TENTH INTERIM REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 2013 08-01789-brl Doc 5554 Filed 10/30/13 Entered 10/30/13 16:52:26 Main Document Pg 2 of 107 TABLE OF CONTENTS Page I. EXECUTIVE SUMMARY ............................................................................................... 5 II. BACKGROUND ............................................................................................................... 7 III. FINANCIAL CONDITION OF THE ESTATE ................................................................ 7 IV. ADMINISTRATION OF THE ESTATE .......................................................................... 8 A. Marshaling And Liquidating The Estate Assets ...................................................
    [Show full text]
  • Bernard Madoff A
    Brigham Young University Law School BYU Law Digital Commons Faculty Scholarship 12-31-2009 Evil Has a New Name (And a New Narrative): Bernard Madoff A. Christine Hurt BYU Law School, [email protected] Follow this and additional works at: https://digitalcommons.law.byu.edu/faculty_scholarship Part of the Banking and Finance Law Commons, and the Criminology and Criminal Justice Commons Recommended Citation A. Christine Hurt, ???? ??? ? ??? ???? (??? ? ??? ?????????): ??????? ??????, 2009 Mɪᴄʜ. Sᴛ. L. Rᴇᴠ. 947. This Symposium is brought to you for free and open access by BYU Law Digital Commons. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of BYU Law Digital Commons. For more information, please contact [email protected]. EVIL HAS A NEW NAME (AND A NEW NARRATIVE): BERNARD MADOFF Christine Hurt* 2009 MICH. ST. L. REV. 947 TABLE OF CONTENTS INTRODUCTION .................................. ....... 947 I. MADOFF'S EXTRAORDINARY CRIME.........................951 A. The Rise and Fall of Bernard L. Madoff Investment Securities..951 B. Madoff's Scheme as Affinity Fraud ..................... 957 II. VICTIMS SHAPE THE MADOFF NARRATIVE ....................... 959 A. Victim Impact Statements ................... ......... 961 B. Sentencing "Extraordinary Evil " ............. ........... 965 C. Restitution, Remission, and Compensation ......... ...... 968 1. Restitution ....................................... 968 2. SIPC Compensation ............................ 969 3. Tax Relief ................ .................
    [Show full text]
  • 2010 Year in Review: SEC and SRO Selected Enforcement Cases and Developments Regarding Broker-Dealers
    review 2010 Year in Review: SEC and SRO Selected Enforcement Cases and Developments Regarding Broker-Dealers www.morganlewis.com TABLE OF CONTENTS Page Executive Summary ..................................................................................................... 1 The SEC.............................................................................................................. 1 Dodd-Frank Wall Street Reform and Consumer Protection Act........................... 3 FINRA.................................................................................................................. 4 NYSE Euronext ................................................................................................... 5 U.S. Securities and Exchange Commission .............................................................. 6 Personnel Changes and New Specialized Unit Chiefs ........................................ 6 Implementation of Enforcement’s Restructuring.................................................. 9 Enforcement Statistics....................................................................................... 10 Insider Trading, FBI MOU and Operation Broken Trust..................................... 14 Cooperation Initiatives ....................................................................................... 16 SEC Enters Into First Nonprosecution Agreement ............................................ 21 Financial Crisis Inquiry Commission.................................................................. 25 SEC OIG Report Concerning
    [Show full text]
  • 2009 Year in Review: SEC and SRO Selected Enforcement Cases and Developments Regarding Broker-Dealers
    review 2009 Year in Review: SEC and SRO Selected Enforcement Cases and Developments Regarding Broker-Dealers www.morganlewis.com TABLE OF CONTENTS Page Executive Summary ....................................................................................................... 1 The SEC ................................................................................................... 2 Developments Relating to Bernard Madoff’s Ponzi Scheme..................... 4 Auction Rate Securities............................................................................. 4 FINRA....................................................................................................... 4 NYSE Regulation...................................................................................... 5 U.S. Securities and Exchange Commission ................................................................... 7 Enforcement Developments at the SEC in 2009 ................................................. 7 Changes in Personnel and Division of Enforcement Structure ................. 7 Enforcement Statistics .............................................................................. 9 Policy Developments .............................................................................. 11 Financial Fraud Enforcement Task Force............................................... 13 Financial Crisis Inquiry Commission ....................................................... 13 Legislative Developments....................................................................... 14 Current
    [Show full text]
  • First Interim Trustee Report.DOC
    Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Attorneys for Irving H. Picard, Esq. Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION Adv. Pro. No. 08-1789 (BRL) CORPORATION, Plaintiff-Applicant, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. TRUSTEE’S FIRST INTERIM REPORT FOR THE PERIOD DECEMBER 11, 2008 THROUGH JUNE 30, 2009 300016705 TABLE OF CONTENTS I. INTRODUCTION ...............................................................................................1 II. BACKGROUND .................................................................................................2 III. PROCEDURAL HISTORY .................................................................................5 IV. LIQUIDATION PROCEEDING..........................................................................5 V. ADMINISTRATION OF THE ESTATE..............................................................7 A. RETENTION OF PROFESSIONALS ............................................................7 B. MARSHALLING AND LIQUIDATION OF ESTATE ASSETS ...................8 C. WIND-DOWN OF ESTATE OPERATIONS...............................................15 VI. FINANCIAL
    [Show full text]
  • Recent Developments in Ponzi Scheme Litigation
    3 RECENT DEVELOPMENTS IN PONZI SCHEME LITIGATION Lawrence J. Zweifach Sophia N. Khan Gibson, Dunn & Crutcher LLP Mr. Zweifach is a partner of Gibson, Dunn & Crutcher LLP. Ms. Khan is an associate at Gibson, Dunn & Crutcher LLP. If you find this article helpful, you can learn more about the subject by going to www.pli.edu to view the on demand program or segment for which it was written. 99 I. INTRODUCTION Within a period of one and one-half years, from September 2008 to December 2009, authorities discovered four of the largest Ponzi schemes in U.S. history. Most notorious among them is Bernard Madoff’s Ponzi scheme of epic proportions, which in December 2008 was reported to have been conducted for more than 20 years and to have involved more than $65 billion in investor losses. Following the Madoff scandal in size and scale are the schemes of Tom Petters, the architect of a $3.7 billion, ten-year long fraud that came to light in September 2008; Robert Allen Stanford, whose scheme surfaced in February 2009 and is believed to have spanned ten years and involved $8 billion; and Scott Rothstein, who confessed in December 2009 to running a $1.2 billion Ponzi scheme. These Ponzi schemes have spawned major litigation in courts in the United States and abroad. Each case has led to multiple criminal prosecutions—not only of the four individuals who are ultimately credited with designing the fraudulent schemes, but also of their employees, associates and, in some cases, auditors, who are alleged to have been their co-conspirators in executing the fraud.
    [Show full text]
  • Annual Report 2011
    SECurITIes InVestor ProteCTIon CorporatIon ANNUAL REPORT 2011 SECURITIES INVESTOR PROTECTION CORPORATION 805 FIFTEENTH STREET, N.W., SUITE 800 WASHINGTON, D.C. 20005-2215 (202) 371-8300 FAX (202) 371-6728 WWW.SIPC.ORG April 30, 2012 The Honorable Mary L. Schapiro Chairman Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549 Dear Chairman Schapiro: On behalf of the Board of Directors I submit herewith the Forty-first Annual Report of the Securities Investor Protection Corporation pursuant to the provisions of Section 11(c)(2) of the Securities Investor Protection Act of 1970. Respectfully, Sharon Y. Bowen Acting Chair Contents SIPC shall not Message from the Acting Chair 3 be an agency or Overview of SIPC 4 establishment of the United States Directors & Officers 5 Government . SIPC shall be Customer Protection Proceedings 6 a membership Membership and the SIPC Fund 8 corporation the members of Litigation 11 which shall be all Disciplinary and Criminal Actions 15 persons registered as brokers or Financial Statements and Auditor’s Report 16 dealers* . .” — Securities Investor Protection SIPC Fund Comparison 27 Act of 1970 Sec. 3(a)(1)(A) & (2)(A) Appendix 1: Distributions for Accounts of Customers for the 28 Forty-One Years Ended December 31, 2011 * Except those engaged exclusively in the distribution of mutual fund shares, the sale of variable annuities, Appendix 2: Analysis of SIPC Revenues and Expenses for the 29 the insurance business, Five Years Ended December 31, 2011 furnishing investment advice to investment companies or insurance company separate accounts, and those whose Appendix 3: Customer Protection Proceedings 30 principal business is conducted outside the United States.
    [Show full text]
  • Revised Complaint Against Cohmad.DOC
    Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 David J. Sheehan Email: [email protected] Marc E. Hirschfield Email: [email protected] Of Counsel: John W. Moscow Email: [email protected] Oren J. Warshavsky Email: [email protected] Attorneys for Irving H. Picard, Trustee for the SIPA Liquidation of Bernard L. Madoff Investment Securities LLC UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: SIPA LIQUIDATION BERNARD L. MADOFF INVESTMENT No. 08-01789 (BRL) SECURITIES LLC, Debtor. IRVING H. PICARD, Trustee for the Liquidation Adv. Pro. No. __________ (BRL) of Bernard L. Madoff Investment Securities LLC, Plaintiff, v. COHMAD SECURITIES CORPORATION, MAURICE J. COHN, MARCIA B. COHN, ROBERT JAFFE, ALVIN J. DELAIRE, JR., STANLEY MERVIN BERMAN, JONATHAN GREENBERG, CYRIL JALON, MORTON KURZROK, LINDA SCHOENHEIMER MCCURDY, RICHARD SPRING, ROSALIE BUCCELLATO, MILTON S. COHN, MARILYN COHN, JANE M. DELAIRE A/K/A JANE DELAIRE HACKETT, CAROLE DELAIRE, EDWARD H KOHLSCHREIBER, EDWARD H KOHLSCHREIBER SR REV MGT TRUST, GLORIA KURZROK, JOYCE BERMAN, S & J PARTNERSHIP, JANET JAFFIN REVOCABLE TRUST, THE SPRING FAMILY TRUST, JEANNE T. SPRING TRUST, THE ESTATE OF ELENA JALON, THE JOINT TENANCY OF PHYLLIS GUENZBURGER AND FABIAN GUENZBURGER, THE JOINT TENANCY OF ROBERT PINCHOU AND FABIAN GUENZBURGER, ELIZABETH M. MOODY Defendants. COMPLAINT Irving H. Picard, Esq. (the “Trustee”), as trustee for the liquidation of the business of Bernard L. Madoff Investment Securities LLC (“BLMIS”), under the Securities Investor Protection Act, 15 U.S.C. §§ 78aaa, et seq. (“SIPA”), by and through his undersigned counsel, for his Complaint against Cohmad Securities Corporation (“Cohmad”), Maurice “Sonny” J.
    [Show full text]
  • April 25, 2012 Seventh Interim Report
    08-01789-brl Doc 4793 Filed 04/25/12 Entered 04/25/12 18:26:02 Main Document Pg 1 of 73 Baker & Hostetler LLP 45 Rockefeller Plaza New York, NY 10111 Telephone: (212) 589-4200 Facsimile: (212) 589-4201 Irving H. Picard Email: [email protected] David J. Sheehan Email: [email protected] Seanna R. Brown Email: [email protected] Attorneys for Irving H. Picard, Trustee for the Substantively Consolidated SIPA Liquidation of Bernard L. Madoff Investment Securities LLC And Bernard L. Madoff UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES INVESTOR PROTECTION CORPORATION, Adv. Pro. No. 08-01789 (BRL) Plaintiff-Applicant, SIPA Liquidation v. (Substantively Consolidated) BERNARD L. MADOFF INVESTMENT SECURITIES LLC, Defendant. In re: BERNARD L. MADOFF, Debtor. TRUSTEE’S SEVENTH INTERIM REPORT FOR THE PERIOD ENDING MARCH 31, 2012 08-01789-brl Doc 4793 Filed 04/25/12 Entered 04/25/12 18:26:02 Main Document Pg 2 of 73 TABLE OF CONTENTS Page I. EXECUTIVE SUMMARY ............................................................................................... 1 II. BACKGROUND ............................................................................................................... 4 III. FINANCIAL CONDITION OF ESTATE ......................................................................... 4 IV. ADMINISTRATION OF THE ESTATE .......................................................................... 5 A. Marshaling And Liquidating The Estate Assets .................................................... 5 B. Retention Of Professionals
    [Show full text]