The Platinum Ponzi and an LM Diagram

Huberfeld Ponzi1.3

We Diagrammed the Links Weeks Ago….

I seem to recall us posting articles detailing the links between Platinum and Rothstein several weeks ago in a few different articles. We even drew a diagram as intertwined, however, as the schemes themselves.  Unfortunately, we are not credited with the following story, but if you have been reading our Platinum postings, you read about the below links before now… Keep following, more to come…

Hedge fund linked to kickback probe had alleged ties with massive Ponzi scheme

http://nypost.com/2016/07/25/hedge-fund-linked-to-kickback-probe-had-alleged-ties-with-massive-ponzi-scheme/

Platinum Partners, the hedge fund at the center of an alleged New York City municipal union kickback scandal, has a history that’s sordid even for Wall Street — with alleged ties to one of the largest Ponzi schemes in history, and a confusing trail of documents that raise more questions than answers, The Post has learned.

Murray Huberfeld and Mark Nordlicht, two top executives of the $1.3 billion fund, allegedly enlisted other hedgies and their wives to invest in a feeder fund for Scott Rothstein, a trustee lawsuit claimed.

Rothstein was convicted of running a Florida Ponzi scheme and is now serving 50 years for racketeering and securities fraud, according to court documents.

Rothstein scammed investors by getting them to bankroll fake lawsuits for litigants who couldn’t afford to pay for their own litigation, with the promise of repaying those investors with settlement money, which turned out to be fake, court documents show.

It ran from 2005 to 2009, and ballooned to $1.2 billion in part because of the investments made by Huberfeld and Nordlicht, according to the suit.

A group of hedgies and their wives were accused in a civil suit brought by the trustee in charge of unwinding Rothstein’s scam of knowing ahead of time that they were funding a Ponzi scheme — a claim they deny. The civil suit was settled in 2012 for $38 million.

Platinum came into the public eye through the charges brought against Norman Seabrook, the ex-head of the NYC correction officer’s union, who pleaded not guilty on Friday to allegedly taking a $60,000 bribe for a $20 million investment in Platinum. Huberfeld has also pleaded not guilty. Nordlicht has not been charged.

Platinum is now in the process of liquidating all three of its funds, Montieth Illingworth, a spokesman for Platinum, told The Post.

Like Rothstein’s fund, Platinum invests in hard-to-value assets, like life settlement policies.

Because its assets are so esoteric, investors were almost entirely dependent on Platinum to say how much they were worth. In one report obtained by The Post, the fund showed gains in 119 out of 120 months in its main credit fund.

Illingworth told The Post that the fund used an “industry standard” metric to value its assets, but declined to describe it, or who developed those metrics.

He added that a valuation committee, which included Nordlicht, met monthly.

The company’s auditor, CohnReznick, didn’t return a call seeking comment.

To read the article in its entirety click, here.

16 thoughts on “The Platinum Ponzi and an LM Diagram

  1. Sarah, The people that should be ashamed are the ones that are getting indicted. In the NY Post the other day 3 men with yarmulkes had their bail set between 1/2 million and 1 million for the way that they treated innocent people and lied to authorities. Those are the people that are committing very big sins. Seabrook was indicted for taking kickbacks from Huberfeld et al using thousands of hard working Correction Officers money.
    Lost Messiah is just the messenger. Keep up the good work Lost Messiah. You get the message out. Maybe you are related to Huberfeld?

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  2. I came to this website to see for myself how someone can have absolutely no shame in publicizing things that they “think” they know all about. Reading these comments, I love how you, “Mr. LostMessiah”….write G-d….not wanting to write the full name, yet all you do all day is speak and write CLEAR lashon harah. You might be write in all you say, but there’s always a chance you could be wrong in which case a very, very big sin. Shame on you. Wow…what a low life! I sure as hell hope you don’t have a family because I couldn’t imagine “a hobby” to be more ashamed of!

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  3. Wex, Maybe they are thinking of all the people who’s money they lost. Maybe they are thinking about all of the Corrections Officers money that they lost. Maybe they are thinking about how much time they will get in jail. Maybe they are thinking about all their lying, cheating, etc.

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    • You have proof they lost people’s money? Would love to see that. I know that’s what your hoping for, but that doesn’t mean it’s true…

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      • Wex, you may be able to delude yourself into believing that yes men have a shred of decency because the dole out money to shine their reputations. The numerous lawsuits speak volumes. They have sold their souls to the Devils laden in cash and diamonds while thousands of investors have suffered. You can support them and do their bidding, but non of this is rocket science.

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        • Thousands of investors? More lies.. It’s a few dozen rich guys who aren’t exactly naive people. They don’t need your pity.

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  4. Platinum’s largest investor is Aron Elbogen who himself was fined millions for his role in the Datek Trading scandal. His son in law is Platinum’s CFO.

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    • @someone, we are able to find about 1.7m in elbogen investments through his family trusts. There doesn’t seem to be any active involvement. In addition, Platinum allowed investors to call their investment every 3 months. It’s possible that his family money is out. Thoughts?

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      • He has tens (if not hundreds) of millions in Platinum, from what I have heard and that putting his son in law in as CFO was a condition of the investments.

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          • @wex – what’s your play in all of this? Are you trying to prove a theorem of sorts? And Aron Elbogen was not guilty in the Datek scandal along with all of his partners? What point are you hoping to make?

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            • The point I am trying to make is that you and some people commenting are making unfounded and wild claims. I know it feels good to put the rich guy down but no one here has anyone idea what they are taking about. Just because elbogen was in trouble 20 years ago doesn’t mean he has 100s of millions in the fund. Stop making things up.

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        • To Mr. Inside info man. He’s the ceo, not counting And he used to work for someone Steve Cohen. He isn’t some idiot who’s father in law had to buy him a job, but nice try

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          • @wex, the information is very easy to glean. Huberfeld is a jackass to be trying to plead and fight this one, Seabrook will hopefully wind up in jail, G-d knows cops don’t fare very well, nor should he, Valentin should refile a lawsuit on grounds other than wrongful termination (because he was right). This is a roadmap for very savvy men who became arrogant pricks and thought they could outsmart the system and no one would notice. As for Elbogen, his money went a long way and we all know traders are adrenaline junkies so he got his fix watching his son-in-law play financial water polo with a bunch of his friends and family’s money. Always easy to risk someone else’s money. Once an adrenaline junkie, always an adrenaline junkie and Elbogen’s Datek days said everything about his financial wizardry. So, please don’t approach the readers of this site like we are all a bunch of fools. You are wasting your time. If you are a financial adviser, you may want to consider advising your clients to remove their money from anything that has the name of these men on it. It’s sink or swim, sir and if we have anything to do with it, the boat’s going to sink along with the captain, first mate and all of the helpers.

            Liked by 1 person

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