THE HUBERFELD FAMILY FOUNDATION – THE HUBERFELD-BODNER FAMILY FOUNDATION – PLATINUM PARTNERS AND AARON ELBOGEN
Lost Messiah, July 1, 2016
The Ponzi scam is named after Charles Ponzi, a clerk in Boston who first orchestrated such a scheme in 1919.
A Ponzi scheme is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. One difference between the two schemes is that the Ponzi mastermind gathers all relevant funds from new investors and then distributes them. Pyramid schemes, on the other hand, allow each investor to directly benefit depending on how many new investors are recruited. In this case, the person on the top of the pyramid does not at any point have access to all the money in the system.
For both schemes, however, eventually there isn’t enough money to go around and the schemes unravel.
Read more: Ponzi Scheme Definition | Investopedia http://www.investopedia.com/terms/p/ponzischeme.asp#ixzz4DAiqtiBX
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We have written multiple articles on Murray Huberfeld, Platinum Partners and their shenanigans. It is like peeling an union, only the onion grows new layers as we peel. As we see it, Murray Huberfeld is likely guilty of crimes on the order, though perhaps not quite as grand a scale as that of Bernie Madoff, only a little more savvy, a bit better dispersed and far more creative. His schemes have been hidden in plain sight for anyone wanted to just dig, unpeel whatever your word of choice.
Huberfeld’s Platinum investments, which can be found in multiple pages on this site and in a myriad of articles, both journalistic and blogged, included Black Elk, New Mountain Capital, Manhattan New York Equities, Bayberry Consumer Finance, the Bodner-Huberfeld Family Foundation and many others. While at one time loaning money to Platinum vis a vis his family foundation, he was investing in Platinum and profiting from the financial gains the funds actually did earn; or draining Platinum of money when the funds were losing. He made millions from Platinum and even more from the losses incurred by naive and trusting investors.
We have taken and continue to take the position that Huberfeld was covering one bad investment in the Platinum funds with another and as each failed, he positioned himself to drain assets out of the funds before investors demanded redemptions but after he had already found new investors to cover losses. This is the quintessential Ponzi scheme. Huberfeld would then reinvest money back into Platinum (or loan it to Platinum as the case may be) and do the same thing the next time he had a pool of investors ready and willing to throw caution to the wind with their finances. After all, when a company can boast 17% returns year after year (by building pyramids of Ponzi schemes), why not invest? There were only a few savvy enough to realize that when it’s too good to be true; that’s because it is, indeed, too good to be true.
THE HUBERFELD FAMILY TRUST
What we find intriguing and must thank our contributor on this one, is the Huberfeld Family Trust tax returns 990 statements (2002 and 2014 attached links). They are a who’s who of investments in different causes, Yeshivas, Chabad organizations; and more importantly a treasure trove of accounts receivable.
In 2014 Huberfeld’s trust had millions in loans to the Aaron Elbogen Irrevocable Trust ($1,500,000) ($1,500,000), which the 990 refers to as investments but are written in the loans/receivables category, the Huberfeld-Bodner Family Foundation ($1,369,730), Mortgages Receivable ($6,120,000) and a number of other smaller entities. We were unable to find corresponding links to these loans in the documents of the various companies mentioned.
With regard to the Huberfeld-Bodner Family Foundation, there are a few points to be made. First, there is undeniably a clear link between Huberfeld and Bodner which cannot be overlooked when ascertaining Bodner’s role in Huberfeld’s frauds. Second, the purpose of the loans is listed on the 990 are to “Assist Loans Made by Related Foundation.” We will be looking into the loans mentioned but they are not clear from the Huberfled-Bodner family foundation documents, nor is there any clear cross-reference to the loans themselves.With respect to the “Mortgage Receivable” was the trust registered to act as a Mortgage Bank? Additionally, is the percentage of return on that “investment” 1200%? If so, is that not a bit questionable? We find that number to be unrealistic, usurious or simply false.
In 2012 the Huberfeld Family Foundation provided loans to American Friends of Chesed L’Orchim which are listed as “personal guarantees” to “assist religious organization.” Why provide a guarantee when that same amount could have been donated? Here there is an “investment” in the Aaron Elbogen Irrevocable Trust which is listed as an “Investment in Two Partnerships and the interest rate if typed correctly is also apparently 1200% Huberfeld supposedly lent money to American Friends of Yeshiva Mir to “Assist Educational Institution” but why not simply donate that money? He also has a loan to “Mortgage Receivables” with an interest rate of 1200% listed as an “investment.” The same questions should be asked.
134042543_201212_990PF2014-134042543-0baca06b-F-3CONCLUSIONS TO BE DRAWN
It is obvious from the returns that Murray Huberfeld has a deep and inextricable relationship with Chabad (see donations), that he both profits from and declares losses from Platinum Partners (see investments and loans), that there are millions of dollars circuitously accounted for and likely inconsistent with reality (see donations and loans) and that Huberfeld has his hands in multiple pockets. We have attached the two years of 990’s for review and included photos of some of the more interesting pages.
134042543_201212_990PF – 990 2012
2014-134042543-0baca06b-F-3 – 990 2014