Platinum Partners – Where is this Going?

Det. Whitney Tilson Would’ve Caught These Platinum Scammers Years Ago



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

Madoff and Twists – A Platinum Example


 Bernard Madoff, founder of Bernard L. Madoff Investment Secu

The Fallout From Madoff’s Fraud Includes an Ironic Twist for Investors

‎January‎ ‎03‎, ‎2017‎ ‎5‎:‎00‎ ‎AM ‎January‎ ‎03‎, ‎2017‎ ‎11‎:‎22‎ ‎AM
  • Courts say investing from offshore keeps the trustee away
  • Rulings make it easier for ‘people to benefit from cheating’

The Fallout From Madoff’s Fraud Includes an Ironic Twist for Investors – Bloomberg

The legal fallout from Bernard Madoff’s epic fraud includes an ironic twist: a road map for investors wanting to hold on to profits that seem too good to be true.

In the eight years since Madoff’s arrest, a series of court decisions have favored investors who profited from the scam, damping the hopes of trustee Irving Picard to return more to Madoff’s victims who lost $17.5 billion in principal, legal experts say. At the core of the disputes is how far Picard can go to make the Ponzi scheme’s investors whole.

“The rulings all lower the risk associated with investing in something that might be a Ponzi scheme,” said Anthony Casey, a University of Chicago law school professor. “Some of these were inevitable conclusions of law. The courts weren’t necessarily being lenient to the big institutions. It just happens to help the wealthier investors.”

Picard and his team of New York-based lawyers have recovered about 65 cents on the dollar — more than anticipated after the collapse of the biggest Ponzi scheme in U.S. history. And while the trustee’s recovery efforts continue on multiple fronts, including suits against some of Madoff’s biggest investors, the rulings took billions of dollars off the table and make a 100 percent return seem impossible.


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The Platinum Serial – Look Back to Bernie Madoff – Don’t Ignore the Pictures


We have read dozens of comments about Huberfeld, Nordlicht and Landesman, amongst others, many of which accuse us of attacking their friends. We have one particular commenter who thinks we should leave this story alone, particularly where Huberfeld is concerned. He is a good person, she says. He has family. He did not go in intending to defraud his investors.

Yes. He did. As did the others.

She then said that if people lost their children’s college funds they were, in sum, foolish to have invested it all. Well, the same has been said of Madoff. In fact, in some interview somewhere Madoff is quoted as saying something like: If they were stupid enough to trust me with all of their money, they deserved to lose it.

We beg to differ.

Platinum’s partners are serial manipulators, preying on the greed of some, the weakness of others and the trust of their friends and families. You, the investors were taken for a ride. The same can be said of Madoff’s investors.

See the video below.


For further information:

Madoff Victims’ Payout Nears $7.2 Billion, Trustee Says

U.S. charges Platinum Partners execs with $1 billion fraud


Mark Nordlicht – The Line That Says it All


Nordlicht Was 22 When it All Began…. A Serial “Risk Adjusted” Delivery Man is and Always Will Be a “Risk Adjusted” Delivery Man

This line says it all—

“is a multi-strategy hedge fund seeking to deliver risk adjusted returns uncorrelated to any broader market activity

Mark Nordlicht

Mark Nordlicht, Chief Investment Officer of Platinum Partners Hedge Fund, brings over 20 years of experience to the fund. The Platinum Partners Hedge Fund, which Mr. Nordlicht founded in 2003, is a multi-strategy hedge fund seeking to deliver risk adjusted returns uncorrelated to any broader market activity. Mr. Nordlicht is responsible for oversight of all trading, asset allocation and risk management for the company, which is headquartered in New York.
Mr. Nordlicht started his career as the youngest trader in the pits of the New York Cotton Exchange; he was 22 at the time. In 1991, Mark Nordlicht founded Northern Lights Trading and was its general partner until 2000. Northern Lights Trading was a proprietary options firm based in New York which employed traders in cotton, coffee, natural gas, crude oil, gold and silver. From 1997 to 2001, partially overlapping his time at Northern Lights, Mark Nordlicht was a founder and managing partner of West End Capital, a New York-based money management firm.

Coincidences Too Hard to Ignore. Hudson Group… Monster Digital, A Platinum Opportunity?

A Monster Inc. Pump and Dump? Perhaps Much Ado About Nothing… We Don’t Think So…. The Hudson Group Connection? Platinum???

By:  LostMessiah, 29/12/16

Yesterday, in a fluke series of events, one of us noticed that the shares of several companies were behaving irrationally. Among them were the shares of Monster Digital Inc..  At about 1:00pm (EST) Monster Digital, Inc.’s (MSDI) share price had nearly doubled from the morning. Its trading volume was nearly quadrupled. At one point during the day it had gone up 114%. As the day continued, the shares peaked and then began sliding.  

There was no news, nothing of any interest that should have logically pushed the shares up as high as they were trading or as low as they landed.  

Tweets were going crazy (see below) as were Bloomberg posts, most of which were both perplexed and ecstatic, depending upon what positions were held by the particular “tweeter”. One trader thanked the market for his significant short on the shares of MSDI.  Another came right out and said that the company was the perfect target for a “pump and dump”.

Today, the shares are not only down from their open yesterday morning but they have sunk further as of today’s opening. Again there was no news yesterday and no new news today that should have caused this much activity in this particular company.

We decided to dig because this company fits with impeccable clarity the pattern of companies serially targeted by Platinum Partners: an obscure company, tech or oil/energy driven, with a following of tech geeks or oil bigwigs, small, IPO over-valued, followers unsophisticated, etc. etc.  We decided to go digging for a Platinum Partners connection.

And we found one.

Of recent notice, on December 5, 2016 Monster Digital, Inc. exhibited new products at the Hudson Group show in Las Vegas. An article in Marketwired on the 9th mentioned the show.  The link to the article is listed as follows:

As it would happen, the current Chief Marketing Officer of Platinum Partners is also the former Chief Marketing Officer of Hudson Group. The two week span of time between the Hudson Show (wherein Monster exhibited) and yesterday’s market activity is simply too hard to ignore.

We may be wrong.  Who knows? This may just be coincidental. We don’t think so.  Looks like a duck. Smells like a duck… You know the rest…

In fact, we think that we found the tiniest of threads to link MSDI with Platinum. We have little doubt that there is something far more nefarious lurking.  There were other stocks that behaved oddly yesterday and some today. Many of them fit the pattern. We are simply too understaffed to follow all of the breadcrumbs. We are banking on the possibility that by posting this, someone will follow leads where we cannot. Forgive the banking pun…

We hope that people who read this will send along information, watch the newswires and market industry news and tweets. We hope the federal authorities are paying attention.   


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Platinum Partners, Implant Sciences Shareholders Heats Up

Shutterstock photo

Implant Sciences Corp. shareholders are seeking bankruptcy-court permission to sue funds affiliated with troubled hedge fund Platinum Partners.

The official committee representing Implant Sciences shareholders last week filed papers asking the U.S. Bankruptcy Court in Wilmington, Del., to authorize it to sue DMRJ Group LLC and Monstant Partners LLC on Implant Sciences’ behalf. According to the shareholders, Implant Sciences has “taken no action” to pursue the legal claims it has against the funds.

The shareholders’ request comes in the wake of the recent arrest and indictment of six Platinum executives on charges of investment fraud. The Wall Street Journal has reported that the Platinum funds, which are liquidating, were a big investor in Implant Sciences.

A representative for Implant Sciences declined to comment Tuesday. Attorneys for the Platinum-affiliated funds, DMRJ and Monstant, didn’t immediately respond to requests for comment.

However, in a Monday court filing, the funds’ attorneys said shareholders are “relying on innuendo, misrepresentations and a lot of ‘where there is smoke there must be fire’ type allegations.” One of the funds’ attorneys has said nothing illegal happened between the lenders and Implant Sciences.

The shareholder committee has asked the Delaware bankruptcy court to consider their request to sue at a Jan. 10 hearing.

Brown Rudnick, the law firm representing the committee, has said such a suit could seek damages of at least $50 million.

Shareholders say their efforts to get the lawsuit off the ground have been stymied by “a substantial” number of missing documents and their inability to interview a Platinum executive who has been arrested.

In Monday’s filing, attorneys for DMRJ and Monstant said they had no control over the arrests that caused the delay in providing the requested paperwork and interviews.

Implant Sciences sought bankruptcy protection in October. In late November, shareholders were authorized to conduct an investigation into Platinum’s dealings with Implant Sciences. Earlier this month, Implant Sciences won court approval to sell its assets to L-3 Communications Holdings Inc. for $117.5 million.

If the shareholders successfully pursue litigation, it could boost the payout to creditors and shareholders in Implant Sciences’ chapter 11 case. The equity group wants to dig deeper into Implant Sciences’ primary source of debt, $86 million in bonds issued to a family of funds managed by Platinum and then converted into equity interests.

Based in Wilmington, Mass., Implant Sciences designs, manufactures and sells systems and sensors that detect trace amounts of explosives and drugs, according to court papers. Its customers include the U.S. Transportation Security Administration, the Canadian Air Transport Security Authority and European airports.

Write to Lillian Rizzo at

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