Will Platinum’s Partners Make Claims that They Tried to Come Clean Too?

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http://nypost.com/2017/02/02/madoff-no-one-believed-me-when-i-tried-to-come-clean/

Madoff: No one believed me when I tried to come clean

Bernie Madoff claims he tried to tell people as early as 2005 — three years before he was arrested — that his empire was nothing more than an elaborate pyramid scheme, according to a new documentary.

Makers of the audio documentary “Ponzi Supernova” obtained a 2012 tape recording of Madoff answering questions in a lawsuit filed by plaintiffs suing Banco Santander’s Optimal Investment Services, which had invested with him.

Madoff said investors came to him with suspicions that he wasn’t really making any profitable trades.
But when he told them the truth, they laughed it off — and didn’t go to authorities, the imprisoned cheat said.

“Well they [suspicious investors in 2005] would, they would ask me that, you know, with a smile, ‘You’re not — are you really doing these trades?’ or ‘You know, and so on and so forth?’ ” Madoff testified in a 2012 deposition.

“And sometimes, I would say, ‘No, I’m not [making any trades].’ They would laugh, and then that would be the end of it. They didn’t want to believe it.”

Madoff’s claim that he was trying to come clean years ago is featured in the sixth and final part of “Ponzi Supernova,” which is being posted Thursday on Amazon’s spoken-word platform, Audible.

Madoff also claimed hedge-fund managers who invested with him should have known the returns they were seeing were mathematically impossible.

“Something Fishy” is the title of Thursday’s installment of “Ponzi Supernova.”

“I thought they didn’t want to understand. I thought that was . . . willful blindness,” said Madoff, who is now 78.

As long as he kept reporting profits, hedge-fund managers didn’t care to ask questions, Madoff said, “because they never, they never really objected.”

“Supernova” documentarian Steve Fishman said he agreed with Madoff that the con man’s biggest investors likely knew something was up — but stopped short of acting as long as paper profits kept piling up.

“They ignored all the warning signs. And those warning signs were really explicit and big,” Fishman said Wednesday.

To read the article in its entirety click here.

A Platinum Array of Victims – Arrests are Not Enough

File photo of rescue crews surrounding Black Elk oil platform in the Gulf of Mexico
Rescue crew surrounds an oil platform operated by Houston-based Black Elk Energy which exploded off the coast of Louisiana in the Gulf of Mexico, in this November 16, 2012 file photo. REUTERS/Sean Gardner/Files

 

Platinum Partners arrests are scant consolation for alleged victims

By Lawrence Delevingne | NEW YORK

When six executives of Platinum Partners, including founder Mark Nordlicht, were arrested on Monday on federal charges of running a more than $1 billion hedge fund fraud, people who had long alleged they were harmed by the New York-based firm felt some vindication.

But the possibility that each defendant might face prison terms has done little to soothe their continued anger over losses that may never be recouped.

One such person is Houston-based energy entrepreneur John Hoffman. In the charges, the U.S. Department of Justice and the U.S. Securities and Exchange Commission alleged what Hoffman had long believed – that Platinum, with the help of a seventh man also arrested, Jeffrey Shulse, had illegally profited from the failure of Hoffman’s company, Black Elk Energy Offshore Operations LLC. 

Hoffman said in a telephone interview on Wednesday that he did not expect to recover anything and that his involvement with Platinum had cost him the company he founded and at least $500,000 in legal fees. He also described stress-related health problems and difficulty fundraising for a new energy venture.

Hoffman expressed anger that thousands of Gulf Coast-area families were stiffed: mostly the small businesses that were never paid for work on Black Elk’s oil and gas drilling platforms before it went bankrupt amid lower oil prices and Platinum’s alleged corporate cash grab.

All six Platinum executives pleaded not guilty and an attorney for Shulse told Reuters he plans to do the same. A spokesman for Platinum declined to comment for this article, and the firm has not offered any public comment. A person familiar with Platinum’s thinking told Reuters in April that the firm always acted within the limits of the law despite its aggressive investment approach.

Launched in 2003, Platinum was known as a high-performing hedge fund manager that backed struggling companies and employed esoteric investment strategies such as litigation finance and high-interest consumer loans. (Reuters Special Report: reut.rs/1TRovwx)

The government charges on Monday included allegations of over-valuing assets and misleading clients on the health of the firm. The government demanded that the hedge fund return money that was allegedly illegally taken from clients and Black Elk bondholders, and pay related penalties.

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Bernie Madoff and the Koch Brothers – Irving Picard’s Efforts at Recovery Thwarted – Money Held Abroad…

The Madoff Judge’s Ruling Setting a Reprehensible Legal Precedent: Invest if you are savvy because the courts will protect you. If you are not, you are S.O.L.

The Koch Brothers and other investors who hold millions, if not billions abroad are being permitted to keep money that in our view should be available for all of the people who were defrauded by Madoff. Irving Picard, the attorney acting as Trustee for the Bankrutpcy estate and a strong advocate for recovery for those most affected by Madoff’s scheme, argued that the money should be disgorged (returned to the bankruptcy estate). The judge, contrary to Picard’s argument disagreed. We believe that this judge set a very toxic precedent by ruling as he did. The message: “If you invested through “feeder funds” or other similar entities which hold money abroad, that money cannot be brought back.”

In other words, the most savvy investors can manipulate the law (if not the court system) to the detriment of the ordinary “non-savvy” investors. Are the less savvy investors not the people the US Securities Laws are designed to protect?

Kochs and Other Madoff Investors Are Winners in Fight Over Profits Held Abroad

http://www.nytimes.com/2016/11/22/business/dealbook/kochs-and-other-madoff-investors-are-winners-in-fight-over-profits-held-abroad.html?_r=0

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Implant Sciences – Another Platinum Victim

Implant Sciences Shareholders Call for Platinum Partners Investigation

http://www.wsj.com/articles/implant-sciences-shareholders-call-for-platinum-partners-investigation-1479328676

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Lichtenstein Pleads GUILTY!

hereSHAYAd31

Alex Lichtenstein of Pomona, a volunteer for the Brooklyn Borough Park Shomrim, sold the licenses for up to $18,000 each, prosecutors said.

https://www.dnainfo.com/new-york/20161110/civic-center/brooklyn-businessman-guilty-bribing-police-gun-licenses

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Ramapo Residents Make a Stand Against Ramapo Temporary School Law – Setting a Precedent!!!!

FOR IMMEDIATE RELEASE

Ramapo Residents Fight Back Against

Ramapo Temporary School Law For Very First Time

Suffern, NY – November 7, 2016 – On June 22, 2016, Tony Mallia, Director of Building, Planning and Zoning for the Town of Ramapo, illegally issued a permit to Aron Bineth / Congregation Yeshiva Zera Yakov to allow for the conversion of a single family home at 101 Carlton Road West to a Yeshiva for 75 students. Mr. Mallia granted this permit over the objections of other Town and local fire officials who pointed out that this conversion was not legal under the Town of Ramapo Code, and who identified many health and safety issues in establishing such a project on an undersized residential lot. This permit, granted in violation of State and local law without planning board review, public hearings, or CDRC review meeting, was challenged by Local Resident Peter Katz in formal letters to the Town Board and Building Inspector. After receiving no response from the Town, Katz formally appealed to the Ramapo Zoning Board of Appeals. Katz had no choice but to petition the Supreme Court of Rockland County today to intercede, as the Ramapo ZBA approved a request by the Yeshiva’s owner/operators to adjourn the hearing of this important case while the construction continues upon the site at a breakneck pace.

The Verified Complaint filed today (Index No. 034819/2016) sets forth ten (10) causes of action, asking the Court to revoke this illegal building permit and to stop all work at the property, until same can be conducted in full compliance with State and local law.

Mr. Katz is joined by two other residents who also live within 500 feet of the property, Jack Gross and Sharon Kronenberg. All three of these Monsey/Suffern area residents are observant orthodox Jews who have sought out and obtained permission from their Rabbi to pursue this action against the Town of Ramapo.

The misuse and abuse of the Temporary Modular School Law under which this permit was approved has caused extreme divisiveness in Ramapo, particularly in the lower density residential neighborhoods of Western Ramapo. Properties housing these “temporary” schools often do not meet zoning code requirements and rely on the much too easy granting of substantial zoning variances by the ZBA. Most egregiously, as is the case in this new litigation, these projects are considered and approved without any form of public hearing as required under the law. Although these schools are supposedly only given temporary permits for one year, with a potential renewal for only one more year, the history of these projects demonstrates a complete lack of code enforcement by the Town of Ramapo. Once a “temporary school” is permitted, it remains open indefinitely.

These plaintiffs are not, of course, opposed to religious schools in their neighborhood. They are however, opposed to the pattern of disregarding the very laws which were established to protect the character of their neighborhood, to ensure the health, safety, and comfort of its inhabitants, and to ensure that their voices, and not just only the voices of developers, are heard.

# # #

Contact:

Peter Katz Phone – 845.357.0129

peterkatz99@gmail.com

 

LEGAL Filings:

Filing User Information

User Name:   STEVEN MOGEL Phone Number:   Fax Number:   Email Service Address:  smogel@sullivancountylawyers.com Work Address:

Payment Information

Amount of payment:  $210 Date of payment:  11/07/2016 Payment method:  VISA/MC Authorization code:  07240G Payment Comments:

E-mail Service Notifications Sent
Name Email Address
STEVEN MOGEL smogel@sullivancountylawyers.com
Note: Service of initiating documents and the “Notice of Availability Regarding Electronic Filing” (in consensual cases) or the “Notice of Commencement of Mandatory E-Filed Case” (in mandatory cases) must be made in hard copy (unless the party agrees to accept service by electronic means). These forms can be found on the NYSCEF site under the “Forms” menu. The served copies also must bear the assigned Index Number and the date of filing (CPLR 305).
Documents Filed

(To view a document, click the document type link)

Doc # Document Type Additional Doc Info Special Instructions Filed Date
1 SUMMONS + COMPLAINT
2 EXHIBIT(S) Copy of 5/5/16 CDRC Application & 4/4/16 Narrative
3 EXHIBIT(S) Copies of the sections of the Code
4 EXHIBIT(S) Copy of Town of Ramapo Zoning Code
5 EXHIBIT(S) Copy of 5/18/16 CDRC Memorandum
6 EXHIBIT(S) Copy of 5/23/16 Mallia Memorandum
7 EXHIBIT(S) Copies of Lepori and Picarello Memoranda
8 EXHIBIT(S) Copy of Moran Memorandum
9 EXHIBIT(S) Copy of RCSD Memorandum
10 EXHIBIT(S) Copy of Tallman Fire Memorandum
11 EXHIBIT(S) Copy of 6/1/16 CDRC agenda
12 EXHIBIT(S) Copy of 6/22/16 Permit Application & 6/22/16 Building Permit
13 EXHIBIT(S) Copy of ZBA Appeal
14 EXHIBIT(S) 10/27/16 ZBA Agenda & Correspondence
15 EXHIBIT(S) Copies of 9/1/16 & 9/16/16 Shapiro Correspondence
16 EXHIBIT(S) Copy of cited sections of 2010 NYS Building Code & NYS Residential Code
THIS E-MAIL IS INTENDED ONLY FOR THE USE OF THE NAMED ADDRESSEE(S) AND FOR THE PURPOSES OF THE NEW YORK STATE COURTS ELECTRONIC FILING SYSTEM. IF YOU ARE NEITHER THE INTENDED RECIPIENT NOR A PERSON DESIGNATED TO RECEIVE MESSAGES ON BEHALF OF THE INTENDED RECIPIENT, PLEASE NOTIFY THE SENDER IMMEDIATELY. THANK YOU.
Rockland County Supreme Court Notification 11/07/2016

Please retain this notification for your records.
The NYSCEF web site has received documents from the filing user, STEVEN MOGEL , for the following case/claim.

 

Case Information

Index #:  034819/2016 Short Caption:  PETER KATZ et al – v. – YAKOV J. OSTREICHER et al Assigned Case Judge:  No Judge Assigned

Filing User Information

User Name:   STEVEN MOGEL Phone Number:   Fax Number:   Email Service Address:  smogel@sullivancountylawyers.com Work Address:

Documents Filed

(To view a document, click the document type link)

Doc # Document Type Additional Doc Info Special Instructions Filed Date
17 ORDER TO SHOW CAUSE ( PROPOSED )   Relief Sought: Injunction/Restraining Order 11/07/2016
18 AFFIRMATION 11/07/2016
19 AFFIRMATION 11/07/2016
20 AFFIRMATION 11/07/2016
21 AFFIRMATION 11/07/2016
22 EXHIBIT(S) Copy of 5/5/16 CDRC Application & 4/4/16 Narrative Exhibit #: 1 11/07/2016
23 EXHIBIT(S) Copies of the sections of the Code Exhibit #: 2 11/07/2016
24 EXHIBIT(S) Copy of the Town of Ramapo Zoning Code Exhibit #: 3 11/07/2016
25 EXHIBIT(S) Copy of the 5/18/16 CDRC Memorandum Exhibit #: 4 11/07/2016
26 EXHIBIT(S) Copies of the 5/23/16 Mallia Memoranda Exhibit #: 5 11/07/2016
27 EXHIBIT(S) Copies of the Lepori & Picarello Memoranda Exhibit #: 6 11/07/2016
28 EXHIBIT(S) Copy of the Moran Memorandum Exhibit #: 7 11/07/2016
29 EXHIBIT(S) Copy of the RCSD Memorandum Exhibit #: 8 11/07/2016
30 EXHIBIT(S) Copies of the Tallman Fire Memorandum Exhibit #: 9 11/07/2016
31 EXHIBIT(S) Copy of the 6/1/16 CDRC agenda Exhibit #: 10 11/07/2016
32 EXHIBIT(S) 6/22/16 Permit Application & 6/22/16 Buiding Permit Exhibit #: 11 11/07/2016
33 EXHIBIT(S) Copy of the ZBA Appeal Exhibit #: 12 11/07/2016
34 EXHIBIT(S) 10/27/16 ZBA Agenda & Correspondence Exhibit #: 13 11/07/2016
35 EXHIBIT(S) 9/1/16 & 9/16/16 Shapiro Correspondence Exhibit #: 14 11/07/2016
36 EXHIBIT(S) Cited Sections of the 2010 Building Code of NYS & NYS Residential Code Exhibit #: 15 11/07/2016
37 RJI -RE: ORDER TO SHOW CAUSE 11/07/2016
E-mail Service Notifications Sent
Name Email Address
STEVEN MOGEL smogel@sullivancountylawyers.com
Parties Without Representation

Court rules require hard copy service upon non-participating and opted-out parties. NYSCEF has no record of opt out or participation recorded for the parties listed below.

Party Name Role
YAKOV J. OSTREICHER Defendant/Respondent
ARON BINETH Defendant/Respondent
CONGREGATION YESHIVA ZERA YAKOV Defendant/Respondent
ANTHONY MALLIA Defendant/Respondent
THIS E-MAIL IS INTENDED ONLY FOR THE USE OF THE NAMED ADDRESSEE(S) AND FOR THE PURPOSES OF THE NEW YORK STATE COURTS ELECTRONIC FILING SYSTEM. IF YOU ARE NEITHER THE INTENDED RECIPIENT NOR A PERSON DESIGNATED TO RECEIVE MESSAGES ON BEHALF OF THE INTENDED RECIPIENT, PLEASE NOTIFY THE SENDER IMMEDIATELY. THANK YOU.
Paul Piperato ,  Rockland County Clerk   –   Piperatp@co.rockland.ny.us
Phone:  845-638-5094     Fax:  845-638-5073     Website:  http://www.rocklandcountyclerk.com

 

 

Platinum’s Investors Please Read – File Claims – Shareholders Foundation

http://www.sbwire.com/press-releases/platinum-partners-value-arbitrage-fund-and-the-platinum-partners-credit-opportunities-fund-investor-alert-investigation-over-potential-wrongdoing-738878.htm

Platinum Partners Value Arbitrage Fund and the Platinum Partners Credit Opportunities Fund Investor Alert: Investigation over Potential Wrongdoing

San Diego, CA — (SBWIRE) — 11/04/2016 — An investigation was announced on behalf of investors in Platinum Partners Value Arbitrage Fund and the Platinum Partners Credit Opportunities Fund over potential breaches of fiduciary duties by certain officers and directors.

Those who invested in the Platinum Partners Value Arbitrage Fund and/or the Platinum Partners Credit Opportunities Fund have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.

The investigation by a law firm concerns whether certain officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.

On June 8, 2016 news outlets reported that a manager at Platinum Partners, Murray Huberfeld, was arrested for allegedly bribing a union leader in exchange for an investment in Platinum Partners. According to the criminal complaint, Huberfeld is a founder and part owner of Platinum Partners and he may have been playing a leading role at Platinum Partners that was not publicly acknowledged by the firm.

On June 22, 2016, agents from the FBI and the U.S. Postal Inspection Service reportedly raided the headquarters of Platinum Partners.

On July 25, 2016, it was reported that federal agents are not only investigating alleged bribery at the fund, but are investigating the fund for fraud. According to the report, federal agents are probing whether Platinum Partners misstated values of some of its holdings, probing the firm’s service providers, including auditors who certified its figures, and probing whether, before Platinum Partners suspended redemptions of its main fund, Platinum Partners Value Arbitrage Fund, Platinum Partners had been paying some reported investment gains to exiting investors with money from incoming investors.

On August 24, 2016, it was reported that a Cayman Islands judge appointed an insolvency specialist to liquidate the assets of Platinum Partners Value Arbitrage Fund (International) Limited.

On October 18, 2016, the flagship fund of Platinum Partners filed for chapter 15 protection, the section of the bankruptcy code that deals with international insolvency. The insolvency specialist assigned to the case allegedly stated that they are conducting “emergency triage” to stave off Platinum’s collapse, citing liquidity problems, concurrent investigations by the Securities and Exchange Commission and Department of Justice, and hundreds of millions of dollars in unpaid bills.

Those who invested in the Platinum Partners Value Arbitrage Fund and/or the the Platinum Partners Credit Opportunities Fund have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com