LostMessiah 4 January 2016

LostMessiah was and has been the brainchild of several people who began this venture last February with a few stories already in our heads, Platinum being front and center.

From the very beginning we made clear that something was very wrong with Platinum, beginning with the extraordinary, though irrational returns. We then raised the question of David Bodner and a piece of property (191 Viola Road) that transferred names rather nefariously in Rockland County, New York.

We questioned the Africa-Israel connection and most notably those who financed Platinum in its early years: David Bodner and Murray Huberfeld and their band of merry… Philanthropists? No.

We posted diagrams.

Huberfeld Ponzi1.3

We showed you the connections between Seabrook and Platinum, COBA and Platinum. We even spoke of Black Elk, a story still in its making. We believe that most of the Platinum investor money (which is likely currently in the family trusts of Bodner and Huberfeld and in the yeshivas begun by Nordlicht and his family) belongs to Black Elk investors who were taken for a ride during a tender offer which was specifically intended to drain the company of its assets.

That story is still one to be told but unfortunately 12 pages later, we have found a web of lies and a spider with far more than eight legs and we have not even scratched the surface.

The investor money has not been spent, in our view. It has been funneled. The trick is going to be getting it out from under the various trust laws protecting it. The key to Huberfeld’s participation in all of this beyond his family trusts is his property which has more recently been transferred to his wife in a quit-claim deed. 

There were people questioning – just too few listening.


See also:


No One Questioned This Hedge Fund’s Madoff-Like Returns

  • Red flags abounded while hedge fund claimed 17% annual gains
  • Platinum was embroiled in rogue trades, Florida Ponzi scheme

In the years before Mark Nordlicht was arrested for what’s alleged to be one of the biggest investment frauds since Bernie Madoff’s, U.S. authorities had plenty of reasons to suspect something might have been fishy about his hedge fund, Platinum Partners.

As far back as 2007, Bank of Montreal accused Nordlicht of helping a rogue trader, costing it more than $500 million. Three years later, when the Securities and Exchange Commission was investigating what it called a “scheme to profit from the imminent deaths of terminally ill patients,” the agency discovered that Platinum had funded the deals. And in 2011, a Florida lawyer who confessed to running a $1.2 billion Ponzi scheme testified that Nordlicht, his biggest funder, lied to help him lure new investors.

And then there were the remarkable profits: 17 percent annually on average from 2003 through 2015, with no down years. The returns were almost as smooth as the fake gains that Madoff claimed year after year, as measured by a popular metric called the Sharpe ratio. Continue reading

Black Elk – The Platinum Litany of Lawsuits – claims filing information

The following is information related to the Platinum and Black Elk lawsuits. At the bottom of the page you will find a series of links. We have been asked how investors can file claims in the suit. Those links provide that information.




To see the above action click the below link.


Hearing information:–LLC–txsbke_395398



Texas Southern Bankruptcy Court Case 4:15-bk-34287 – Black Elk Energy Offshore Operations, LLC and Ad Hoc Committee of Secured Noteholders | Inforuptcy



Latest Dockets

Date Filed # Docket Text
10/26/2016 1322 Order Granting Motion For Relief From Stay (Related Doc # 1298) Signed on 10/26/2016. (adol) (Entered: 10/26/2016)
10/26/2016 Courtroom Minutes. Hearing Held: 2:30 PM. Appearances: David Curry for Richard Schmidt. Eric Rhine for Robert Henderson. The Motion for Relief filed by Argonaut was withdrawn. With respect to the Motion for Relief by Robert Henderson, an agreement was reached. Order signed. Mr. Curry announced his client filed an adversary proceeding and a TRO against several Platinum Entities. (Related document(s):[1290] Motion for Relief From Stay, [1298] Motion for Relief From Stay) (mrios)
10/26/2016 Courtroom Minutes. Hearing Held: 2:30 PM. Appearances: David Curry for Richard Schmidt. Eric Rhine for Robert Henderson. The Motion for Relief filed by Argonaut was withdrawn. With respect to the Motion for Relief by Robert Henderson, an agreement was reached. Order signed. Mr. Curry announced his client filed an adversary proceeding and a TRO against several Platinum Entities. (Related document(s):[1290] Motion for Relief From Stay, [1298] Motion for Relief From Stay) (mrios)
10/26/2016 1321 Adversary case 16-03237. Nature of Suit: (13 (Recovery of money/property – 548 fraudulent transfer)),(14 (Recovery of money/property – other)), (81 (Subordination of claim or interest)) Complaint by Richard Schmidt against Platinum Partners Value Arbitrage Fund LP, Platinum Partners Credit Opportunities Master Fund LP, Platinum Partners Liquid Opportunities Master Fund LP, PPVA Black Elk (Equity) LLC. Fee Amount $350 (Attachments: # 1Exhibit Adversary Proceeding Cover Sheet) (Waggoner, Justin) (Entered: 10/26/2016)
10/24/2016 1320 Notice of Appearance and Request for Notice Filed by Philip K Jones Jr Filed by on behalf of Starfish Pipeline Company (Jones, Philip) (Entered: 10/24/2016)
10/08/2016 1318 BNC Certificate of Mailing. (Related document(s): 1314Order on Emergency Motion) No. of Notices: 72. Notice Date 10/08/2016. (Admin.) (Entered: 10/08/2016)
10/07/2016 1319 Replyin Support of(related document(s): 1278Generic Motion). Filed by Shamrock Management, LLC (bcam) (Entered: 10/17/2016)
10/07/2016 1317 BNC Certificate of Mailing. (Related document(s): 1313Order on Motion to Appear pro hac vice) No. of Notices: 72. Notice Date 10/07/2016. (Admin.) (Entered: 10/08/2016)
10/07/2016 1316 BNC Certificate of Mailing. (Related document(s): 1312Order on Motion to Appear pro hac vice) No. of Notices: 70. Notice Date 10/07/2016. (Admin.) (Entered: 10/08/2016)
10/07/2016 1315 BNC Certificate of Mailing. (Related document(s): 1311Order on Motion to Appear pro hac vice) No. of Notices: 69. Notice Date 10/07/2016. (Admin.) (Entered: 10/08/2016)


Black Elk Running – the Litigation and the Attorneys Handling It

CORRECTING and REPLACING Top-10 Litigation Boutique, Smyser, Kaplan & Veselka, L.L.P., Seeks over $200 Million for Oil and Gas Industry Creditors Defrauded by Embattled Billion-Dollar New York Hedge Fund

CORRECTION…by Smyser, Kaplan & Veselka, L.L.P.
October 26, 2016 08:06 PM Eastern Daylight Time


HOUSTON–(BUSINESS WIRE)–Please replace the release with the following corrected version due to multiple revisions.

The corrected release reads:


Retired United States Bankruptcy Judge Richard S. Schmidt serves as Trustee of the Black Elk Energy Offshore Operations, LLC Litigation Trust. Judge Schmidt filed an Original Complaint alleging that Platinum Partners Value Arbitrage Fund LP, Platinum Partners Credit Opportunities Master Fund LP, Platinum Partners Liquid Opportunities Master Fund LP, and PPVA Black Elk (Equity) LLC (collectively “Platinum”) is liable for more than $200 million in improperly transferred assets for its use and benefit. See Richard Schmidt, Trustee of The Black Elk Energy Offshore Operations, LLC Litigation Trust vs. Platinum Partners Value Arbitrage Fund LP, et al, Case No. 16-03237, In the United States Bankruptcy Court for the Southern District of Texas, Houston Division.

Contemporaneous with that filing, came an Emergency Application for Preliminary Injunctive Relief in Houston bankruptcy court. In it, the Trustee sought and won an immediate temporary restraining order and subsequently intends to seek a temporary injunction to freeze $97,959,854.79 Platinum fraudulently transferred to itself from Black Elk Energy Offshore Operations, LLC (“Black Elk”).


The Black Elk-Platinum relationship began when Platinum aggressively overtook Black Elk by acquiring 85% of the company within three years of its initial investment. Once in control, Platinum stripped Black Elk of its valuable assets, leaving the company without the financial means to repay creditors. Platinum then engaged in shrewd financial maneuvers to route funds obtained from the sale of Black Elk’s assets back to itself. Platinum’s actions ultimately forced Black Elk into involuntary bankruptcy, later converted into a Chapter 11 reorganization and subsequent liquidation.

Although the Complaint details actions Platinum took to Black Elk’s detriment on several transactions, a primary focus in the Emergency Application was on Platinum’s manipulation of the more than $120 million in proceeds from the sale of Black Elk’s best Gulf of Mexico assets. Smyser stated: “Platinum engineered a transfer of more than $97 million to it and for its benefit from the sale of Black Elk’s prime oil and gas assets, a transfer that led to Black Elk’s demise and deprived creditors and oilfield workers of payment for work they’d done. It was an outrageous plundering of a company.”

While Platinum’s main fund has money owed to Black Elk creditors, the Platinum fund itself has now initiated a Chapter 15 bankruptcy. The fund, in liquidation proceedings in the Cayman Islands, has filed a request that the New York bankruptcy court recognize the Cayman liquidation proceedings and enter a stay of U.S. proceedings against the fund’s creditors. Earlier this year, the federal government indicted one of Platinum’s principals, Murray Huberfeld. The Trustee is pleased that the trust could count on the Houston bankruptcy court to freeze Platinum’s funds fraudulently acquired from Black Elk before Platinum could succeed in dissipating them or other creditors obtained them.


Release Versions

 To read the article in its entirety click here.

A Platinum Result – Assets Frozen



Platinum assets frozen on allegations of ‘plundering’ over $200 million

Troubled hedge fund manager Platinum Partners was ordered by a U.S. bankruptcy judge to temporarily freeze approximately $118 million after a lawsuit Wednesday accused it of illegally stripping key assets from a now-collapsed energy company.

The complaint, filed on behalf of a trustee representing creditors of Black Elk Energy Offshore Operations, LLC, alleges that Platinum is liable for more than $200 million in assets it improperly transferred into its various funds from Black Elk, effectively killing the company.

Platinum was able to unfairly profit from Black Elk, according to the suit in Federal bankruptcy court, through a coordinated scheme with Beechwood, a reinsurance business with close ties to Platinum. The two parties allegedly rigged a Black Elk bond vote in 2014 that allowed Platinum to pocket proceeds from a major asset sale, instead of creditors and secured note holders that included AQR Capital Management.

That apparent coordination by Beechwood and Platinum was featured in a Reuters’ investigation published in April.

U.S. bankruptcy judge Marvin Isgur wrote in his order Wednesday that “the allegations … reflect a pattern of fraud and abuse by Platinum” and there is a “reasonable probability that fraud has occurred.”

A spokesman for Platinum, led by Mark Nordlicht, declined to comment. A spokesman for Beechwood, led by Mark Feuer, did not immediately respond to a request for comment.

Houston-based Black Elk entered into bankruptcy in 2015 and is now being dissolved. A litigation trust remains in an effort to repay creditors following what attorney Craig Smyser called an “outrageous plundering” of the company.

Platinum, once a high-performing, $1.35 billion hedge fund manager based in New York, has been in crisis for months.

A longtime associate of the firm was arrested in June, federal regulators are investigating the firm, and its main funds are being liquidated under the supervision of a pair of monitors. Most recently, its flagship hedge fund filed for bankruptcy protection on October 18.

Beechwood also faces pressure from the investments it made in Platinum funds and related companies – including Black Elk – on behalf of insurance companies such as CNO Financial Group Inc and Senior Health Insurance Company of Pennsylvania.

To read the article in its entirety click here.


66th Precinct – What’s the Going Rate for a Corrupt Cop?


Lt. Michael Andreano Joins the Ranks of those Alleged to be in Bed with the Epidemic of Corruption within the Ultra Orthodox Community of Borough Park and Beyond…


NYPD lieutenant stripped of badge, gun over ties to bribery scheme

A high-ranking Brooklyn cop has been stripped of his badge and gun over ties to a key figure in an alleged $1 million NYPD bribery scheme, The Post has learned.

Lt. Michael Andreano of the 66th Precinct in Boro Park was put on desk duty as part of the wide-ranging corruption probe that has already resulted in pending charges against three NYPD bosses, sources said.

Andreano is suspected of having improper dealings with Alex “Shaya” Lichtenstein, a leader of the Boro Park “Shomrim” patrol who in April was busted on bribery and conspiracy charges involving pistol permits, sources said.

“This guy was tight with Shaya and would go out of his way to accommodate him,” a source said.

Andreano served as a community-affairs sergeant in the 66th Precinct before getting promoted to lieutenant in 2015 and transferred to the 60 Precinct in West Brighton.

He was transferred back to the 66th after “a month or two,” sources said, and put in charge of Special Operations there.

Andreano’s return was announced at a Community Council meeting in September 2015, according to the KensingtonBK blog.

Lichtenstein was allegedly recorded offering a whistleblowing cop $6,000 a pop to “expedite” approval of pistol permits for members of Brooklyn’s Orthodox Jewish community.

During that conversation, Lichtenstein used a calculator to show that 150 permits would be worth $900,000, according to the feds.

He also allegedly bragged that he had already scored 150 permits for clients who paid him up to $18,000 each for the service but said he had lost his connection in the NYPD’s License Division.

Earlier this month, a prosecutor revealed there had been “continuous discussions” for Lichtenstein to strike a plea deal, and a judge gave both sides until Nov. 3 to come to terms or proceed with the case.

The cop who secretly recorded Lichtenstein, former License Division member David Ochetal, secretly pleaded guilty and agreed to cooperate with authorities after admitting that he had accepted “lunch money” from Lichtenstein.

To read the article in its entirety click here.

Our Estimation? Follow the Money… Platinum Files Bankruptcy



Detractors are calling it “emergency triage” and we could not agree more. We only hope that the Federal authorities get it right on this one and start checking private accounts for Platinum principles and major investors past and present, Murray Huberfled, Mark Nordlicht, Brian Jedwab, etc., their respective families, trusts, associates and friends.



Platinum Partners’ Flagship Hedge Fund Files for Bankruptcy – WSJ

Platinum Partners’ Flagship Hedge Fund Files for Bankruptcy

The fund, which is facing a federal fraud investigation, files for chapter 15 protection

Platinum Partners’ flagship hedge fund, which faces a federal fraud investigation, filed for bankruptcy protection Tuesday.

The filing in U.S. Bankruptcy Court in Manhattan notes that Platinum “is experiencing severe and substantial liquidity problems that threaten to result in the devaluation of the funds’ assets.”

Platinum filed for chapter 15 protection, the section of the U.S. code that deals with international insolvency. Platinum’s flagship fund, like many of its peers, has operations in the Cayman Islands.

Platinum recorded one of the most impressive performance records in the hedge-fund world until this summer, when it announced it would liquidate. It said at the time it had $1.25 billion under management. It hasn’t yet handed back the money.

The fund’s liquidators said in the filing they are conducting “emergency triage” to protect the fund amid concurrent investigations by the U.S. Securities and Exchange Commission and Department of Justice.


To read the article in its entirety click, here.


For Further Reading:

Platinum Partners’ Flagship Hedge Fund Files for Bankruptcy – WSJ

$200 million Ponzi Scheme – Lakewood


Lakewood man convicted in $200M Ponzi scheme gets nowhere with appeals

Eliyahu Weinstein, already facing 25 years in prison in connection with a Ponzi scheme, was charged today in a new scam involving shares of Facebook before the social media company went public. (Star-Ledger file photo) (Frank Conlon/The Star-Ledger)
Kathleen O'Brien | NJ Advance Media for NJ.comBy Kathleen O’Brien | NJ Advance Media for
Email the author | Follow on Twitter
on August 14, 2016 at 9:32 AM, updated August 14, 2016 at 9:33 AM

The Lakewood man who ran a $200 million Ponzi investment scheme that bilked members of the town’s Orthodox community has struck out in his attempt to overturn his convictions.

Eliyahu Weinstein was sentenced to 22 years in prison in early 2014 after admitting his role in what authorities said was one of the largest cases of investment fraud they’d encountered.

Just months later, he pleaded guilty to charges he tricked investors into thinking he had an inside track on the Facebook initial public offering.

“Shamelessly, he even used the money he stole to pay the legal fees he accumulated from the previous scam,” said U.S. Attorney Paul Fishman at the time. The judge tacked another two years onto his sentence for that crime.

N.J. cop accused of drunken rampage headed to court

N.J. cop accused of drunken rampage headed to court

Weinstein appealed both cases, seeking to withdraw his first plea and toss out the second set of charges.

In that appeal, he claimed the judge was tainted for the second case because he oversaw the plea deal in the first case. Weinstein also claimed his lawyer had a conflict of interest because he had advised investors so was also at risk of prosecution, and that the Facebook case amounted to Double Jeopardy.

A three-judge panel of the U.S. Court of Appeals Third Circuit rebuffed those claims in a ruling issued Friday.

U.S District Judge Joel A. Pisano’s participation in the first go-around of plea negotiations was extremely limited, and any claims to the contrary were “unsubstantiated hearsay,” the panel wrote.

As to Weinstein’s attorney, the panel found that any interactions the lawyer had with investment customers was based on his belief the money would be properly invested, not pocketed by Weinstein. Therefore, the lawyer would not have faced prosecution and was able to represent him in the case, the panel found.

The panel also made quick work of rejecting Weinstein’s assertion that prosecutors had split the overall case into two cases just to tack on more prison time.