A Platinum 1 Billion Dollar Fraud – Black Elk – Platinum’s Partners and Mark Nordlicht

Dratch, Mark - large_medium
Mark Dratch, why are you not protecting those most vulnerable?

NASDAQ Reporting – A Platinum Fraud, Black Elk and Going Back to 2016… $1 Billion and Counting

NEW YORK, Feb 26 (Reuters) – Former Platinum Partners chief Mark Nordlicht and other executives of the now-defunct hedge fund group are due to go to trial on Tuesday on charges they defrauded investors out of $1 billion.

Opening statements are expected to begin in the morning before U.S. District Judge Brian Cogan in federal court in Brooklyn.

Prosecutors charged the defendants in December 2016 with orchestrating two fraudulent schemes involving Platinum, which struggled to attract large institutional clients despite years of golden returns from niche and unsavory investments.

In one scheme, Platinum was accused of overvaluing its often-illiquid assets to collect higher fees, and falsely reporting annualized returns topping 17 percent.

Authorities said Platinum operated “like a Ponzi scheme” by using new money to fund redemptions by earlier investors, which were referred to internally as “Hail Mary time.”

The second alleged scheme centered on Black Elk, a Platinum-controlled oil exploration company. Prosecutors said the defendants defrauded Black Elk’s bondholders out of $50 million by diverting the proceeds of asset sales to Platinum ahead of Black Elk’s 2015 bankruptcy.

Reuters described Platinum’s use of related parties in its Black Elk bond vote in an April 2016 Special Report:

To read the article in its entirety click here.

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A Platinum Enterprise – Bad Press not Fraudulent Transactions Tanked the Fund

FROM LAW 360

Law360 is a Subscription Only site so we are unable to provide you with the entirety of the article. The Headline is as follows:

Platinum Exec Wants Trial Halted Pending Media Leak Review

We will provide you with a few brilliant highlights in the hope that we are withing the site’s copyright protections; and the we recommend that you subscribe to that site for a constant stream of information, related not only to Platinum, if you are so inclined. There is a wealth of information.

And this is not a paid advertisement. 

Law360 (February 7, 2019, 9:09 PM EST) — Platinum Partners founder Mark Nordlicht asked a Brooklyn federal judge on Thursday to stop the fraud case against him from going to trial until the Second Circuit can review his latest mandamus petition that includes allegations that a prosecutor leaked grand jury information to the media.
Nordlicht, the chief investment officer for the defunct investment firm, has argued damaging stories about Platinum contributed to the failure of its funds, not misconduct by him and co-defendants.
Lawyers for Nordlicht have said the emails, which show reporters from several outlets arranging drinks and meetings with former Assistant U.S. Attorney Winston Paes, strongly suggest Paes provided information about the Platinum investigation that appeared before Nordlicht’s arrest. The government has said the letters don’t evidence a grand jury leak at all, however, and Paes hasn’t responded to comment requests.

We would like it to be known that we did not speak to anyone associated with the Prosecution’s case. We think that the Prosecution is missing information that would make the case even stronger and we would be glad to provide it. We don’t need anything to come to the conclusions we have drawn. It is all out there in public filings.

It did not take a rocket scientist, or even someone particularly savvy to figure out that Platinum and its associated funds were engaging in what was tantamount to a Ponzi Scheme over the course of many, many years. We have pages and pages of research from publicly available sources, subscription sources and our own analysis and we could likely mount a pretty significant case for the allegations for which he is charged and others which may or may not be embedded in the initial charges. 

We would be more than happy to provide assistance. We feel Nordlicht is getting off easy. If the press is blamed for the failure of Platinum’s fund, then some Judge is not doing his or her homework. Investors lost millions and Mark Nordlicht cannot cry poverty. It’s an unfortunate scenario.

And if he gets off easy, it further substantiates our consistent claims (to Norman Seabrook regarding the color of his skin and his lack of political clout) and so many others on this blog, that people are being bought.

Can’t someone bring a modicum of integrity to the system?

In a Bid For Leniency Huberfeld, a Serial Fraudster, Has been Going on a Dina D’Malkhusa Dina Speaking Tour

 “He has taught us about Dina D’Malkhusa Dina: the law of the land is the land”

Should Murray Huberfeld, an extraordinarily wealthy investment manager, a skilled financier, an adroit con-man, orthodox Jew and alleged “philanthropist” not have known that “the law of the land is the land” already?

We have included the relevant 4 pages of the 45 page “aid in sentencing“.  We could go on and on with comments that cannot quite adequately express how troubling we find the entirety of that 45 pages.

Suffice it to say, if Huberfeld did not already know that the law of the land is the land,  even a cell with Madoff is a generous outcome.

We wonder when the authorities will stumble on FERC and hold Huberfeld and Platinum’s dizzying number of subsidiaries in the gas business, many of which were positioned solely to defraud FERC, liable for those offenses. This is all just smoke and mirrors.

Huberfeld could sell snow to a snowman and this entire show is nothing short of chilling.

huberfeld_page_1huberfeld_page_2huberfeld_page_3huberfeld_page_4

Platinum Receivership Information

 

SECURITIES & EXCHANGE COMMISSION V. PLATINUM MANAGEMENT (NY) LLC, ET AL.

Platinum Receivership


AUGUST 15, 2018 WEBINAR VIDEO – Investor & Creditor Forum

July 23, 2018

VIA WEB POSTING

TO:
FROM:
RE:
Platinum Partners Investors and Creditors
Melanie L. Cyganowski, as Receiver
Investor & Creditor Forum

I am pleased to announce that I will hold a virtual forum for Platinum Partners Investors and Creditors on August 15, 2018 from 12:00 P.M. to 1:00 P.M. Eastern. During the forum, I plan to provide an update on the Receivership, including the steps I have taken since the last forum and our plans moving forward. There will also be time for questions.

Instructions for registering and participating in the forum by computer or telephone are provided below. If you would like to submit questions in advance, or have any questions regarding the forum, please direct them to platinumreceiver@otterbourg.com. Those participating by computer will be able to submit questions during the event using the computer service, but those participating by phone will be on mute and will need to send questions through the platinumreceiver@otterbourg.com email address. Finally, please note that we will utilize a court reporter, as well as video, to record the session. Thank you and I look forward to speaking with you soon.
Sincerely,

Melanie L. Cyganowski
Receiver

You are invited to a Platinum Receivership webinar.
When: August 15, 2018 12:00 PM (Eastern Time – US and Canada)

Topic: Investor & Creditor Forum

BY COMPUTER:

Please click the link below to join the webinar:
https://zoom.us/j/995380643

Please note: You must first download “Zoom” webinar software. Simply google “zoom.us” to download this free software.

OR IPHONE ONE-TAP:

+16699006833,,995380643# -OR- +16468769923,,995380643#

OR TELEPHONE:

Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 -OR- +1 646 876 9923

Webinar ID: 995 380 643

International numbers available: https://zoom.us/u/eBFnaDFpk

NOTICE OF ELECTRONIC SYSTEMS SECURITY INCIDENT

The Receiver is in the process of directly notifying certain individuals whose personal information may have been exposed as a result of a recent security incident involving a single email account on a cloud-based service used by Platinum. Specifically, Platinum recently identified suspicious computer-related activity and as a result, the Receiver immediately engaged LMG Security, a leading independent cybersecurity firm, which has been working to further secure Platinum’s systems, as well as conducting a comprehensive forensic review to determine the scope of the incident, including the specific data which may have been impacted.

Based on the investigation thus far, there was limited unauthorized access to a single email account on a cloud-based service used by Platinum from March 19, 2018 to May 19, 2018. Platinum is not aware of any impact on Platinum’s bank accounts or other assets as a result of this incident, nor is Platinum aware of any attempt to misuse any individual personal information which may have been exposed as a result of this incident.

In addition to its forensic analysis, LMG Security and Platinum took steps to minimize and prevent any additional unauthorized access to Platinum’s electronic systems or data. LMG Security’s findings have been reported to law enforcement and the Receiver’s team and professionals continue to work with the appropriate authorities.

While there is no evidence to suggest that there has been any attempt to misuse any of the personal information which may have been contained in the impacted data, those individuals who may have been directly affected by this incident have, or will receive, individual letters apprising them of the incident and informing them of the services which the Receiver is providing to them in an abundance of caution. Specifically, the Receiver, working with the cyber response team at Garden City Group, has established a call center to respond to inquiries by those individuals receiving letters from the Receiver, and is offering complimentary identify theft protection services through ID Experts®. This service includes 12 months of credit monitoring, a $1,000,000 insurance reimbursement policy, and fully managed id theft recovery services. With this protection, MyIDCare will help affected individuals resolve issues if their identity is compromised.

If you would like further information regarding the foregoing, please call (888) 866-5172.


JUNE 6, 2018 WEBINAR VIDEO – Investor & Creditor Forum

May 15, 2018

VIA WEB POSTING

TO:
FROM:
RE:
Platinum Partners Investors and Creditors
Melanie L. Cyganowski, as Receiver
Investor & Creditor Forum

I am pleased to announce that I will hold a virtual forum for Platinum Partners Investors and Creditors on June 6, 2018 from 12:00 P.M. to 1:00 P.M. Eastern. During the forum, I plan to provide an update on the Receivership, including the steps I have taken since the last forum and our plans moving forward. There will also be time for questions.

Instructions for registering and participating in the forum by computer or telephone are provided below. If you would like to submit questions in advance, or have any questions regarding the forum, please direct them to platinumreceiver@otterbourg.com. Those participating by computer will be able to submit questions during the event using the computer service, but those participating by phone will be on mute and will need to send questions through the platinumreceiver@otterbourg.com email address. Finally, please note that we will utilize a court reporter, as well as video, to record the session. Thank you and I look forward to speaking with you soon.
Sincerely,

Melanie L. Cyganowski
Receiver

You are invited to a Platinum Receivership webinar.
When: June 6, 2018 12:00 PM (Eastern Time – US and Canada)

Topic: Investor & Creditor Forum

BY COMPUTER:

Please click the link below to join the webinar:
https://zoom.us/j/995380643

Please note: You must first download “Zoom” webinar software. Simply google “zoom.us” to download this free software.

OR IPHONE ONE-TAP:

+16699006833,,995380643# -OR- +16468769923,,995380643#

OR TELEPHONE:

Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 -OR- +1 646 876 9923

Webinar ID: 995 380 643

International numbers available: https://zoom.us/u/eBFnaDFpk

DECEMBER 20, 2017 WEBINAR VIDEO – Investor & Creditor Forum

MELANIE L. CYGANOWSKI, RECEIVER c/o Otterbourg P.C. 230 Park Avenue, 30th Floor New York, NY 10169 E-mail: platinumreceiver@otterbourg.com Website: www.PlatinumReceivership.com

MARCH 1, 2018 WEBINAR VIDEO – Investor & Creditor Forum

Letter to Redress Bond – A Platinum Idea – Mark Nordlicht and More

MarkNordlicht

THE PLATINUM PARTNER AND THE FEE FOR HIS FREEDOM – BUT WHAT ABOUT THE VICTIMS?

Mark Nordlicht has apparently written a letter to the court asking for a reduction in Bond. We cannot publish the letter here because it is available on the PACER site for a fee. We have provided the links since August 6th. You will likely need to pay a fee to view the documents.
369
08/06/2018
Letter in Further Opposition to Defendant Mark Nordlicht’s Application to Travel as to Mark Nordlicht
370
08/07/2018
Letter in Response to Government’s Opposition as to Mark Nordlicht
372
08/08/2018
Letter by the government, dated August 8, 2018, requesting that the Court schedule a status conference regarding the defendant Mark Nordlicht’s bond and his travel to Israel as to Mark Nordlicht
08/09/2018
SCHEDULING ORDER as to Mark Nordlicht re 372 Letter. Status Conference set for 8/10/2018 at 9:45 AM in Courtroom 8D South. Ordered by Judge Brian M. Cogan on 8/9/2018. (Text entry; no document attached.)
373
08/09/2018
Letter Request to Appear Telephonically at August 10th Status Hearing as to Mark Nordlicht
08/09/2018
ORDER as to Mark Nordlicht re 373 Letter requesting to appear by telephone. Application Granted. Defense counsel shall call chambers at 718-613-2230 at the scheduled time. Ordered by Judge Brian M. Cogan on 8/9/2018. (Text entry; no document attached.)
374
08/09/2018
Letter Response to Government’s August 9th Request for Status Hearing as to Mark Nordlicht
08/10/2018
Minute Entry for Status Conference as to Mark Nordlicht held on 8/10/2018 before Judge Brian M. Cogan. AUSAs Lauren Elbert and Patrick Hein. Defense Counsel: Lisabeth Fryer and Ronald Sullivan by telephone. Counsel waives their client’s appearance for reasons stated on the record. (Court Reporter Sophie Nolan.) (Text entry; no document attached.)
378
08/16/2018
Letter Notice of Hearing on Government’s Motion to Readdress Bond as to Mark Nordlicht
08/16/2018
SCHEDULING ORDER as to Mark Nordlicht re 378 Letter. Hearing on Government’s Motion to Readdress Bond set for 8/23/2018 at 4:30 PM in Courtroom 8D South. Ordered by Judge Brian M. Cogan on 8/16/2018. (Text entry; no document attached.)