The Magic of Platinum Partners and the Wand of the Magicians Involved – and the Great Tragedy to Jews Everywhere

Great liars are also great magicians.

Adolf Hitler

[Opinion 6.24.19]

Platinum Partners’ Feats of Magic and the Potential for a Great Escape –

The Existential Threat to All of Judaism

The anti-Semitism of Eastern Europe in the mid-1900’s was perpetuated by fear. The prominent Jewish families of Eastern Europe were financiers, bankers, jewelers, clothiers and well-known figures in art and antiquities collection. In whatever form of religious observance our family members took, they were feared because of their successes not because of their improprieties. Hitler’s hold on his own supporters was dominated in large part by a culture of fear shared by Bavaria and surrounding German areas, of the possibility of losing their German Arian identity to Jews, who did not inspire trust, not because they were untrustworthy but because they were gloriously successful at everything they did. Our family members were accomplished.  There were very few who exchanged education for Talmud even in the most religious families of the time. Rather for many families, mastery of life encompassed an aptitude at religious and non-religious subjects and a strong mentality of self-sufficiency. And, the Jewish identity of perseverance and tenaciousness inspired unfounded mistrust, xenophobia and anti-Semitism. As such, Hitler gained power and Jews were slaughtered.

Fast-forward fifty, sixty, seventy years and the world is seeing an increase in anti-Semitism. Unlike in the past, however, it is not a blind mistrust, it is one based upon what feels almost like a culture of fraud and deceit ingrained in so much of the Jewish Zeitgeist that it is tainting all Jews. It can almost be said that the mistrust is justified, based in Ponzi Schemes, privatized, inadequate education to the detriment of non-Jews and secular Jews and an uncanny ability to circumvent laws. Everything from vaccines and education to financial accountability and governmental regulations, are not outside the scope of subject the pubic Jewish collective is trying to manipulate.

Those of us willing to call out wrongs are relegated to courtrooms and lawsuits with no end in site. As such, anti-Semitism is far more difficult to counter than it was in the times immediately preceding Hitler’s power and during the war. And if our Jewish brothers are not held to account, Jews everywhere will be castaway as pariahs.

The Platinum Partners Ponzi Scheme, the Madoff Ponzi Scheme, the Philip Esformes conviction are so deeply rooted in the Jewish run ethos, they are leaving far more than financial ruin in their wake. They are increasing the breadth of a community of people who hate Jews because we are viewed in the unfavorable light these Jewish fraudsters shine on our community. That these frauds are perpetrated with such grace and ease by members of the Jewish community is a travesty.  That the moral compass of the community supporting them is so skewed it is unwilling to even acknowledge that the acts of Platinum’s Partners’ partners were calculated, orchestrated and choreographed like any great magic show.

And if Platinum Partners’ partners do not get convicted, the result could be catastrophic for Jews everywhere. If we are incapable of bringing swift and harsh justice against those Jews who commit wrongs, we will all suffer the consequences. That fraud is with increasing frequency seeping into the “Jewish identity” and is damaging that identity for everyone. The Platinum Partners case is a blight on our community and it should be viewed as such, whispered like the big C-Word (cancer) when our parents talked at the Shabbos table about a friend diagnosed days before. Jewish orchestrated fraud is a cancer, a blight, a disease of the worst form and if not stopped, it will spread. This is not anti-Semitic but an honest view of the dangers that rampant fraud within our community creates.

The Magic of the Platinum Partners’ Ponzi Scheme was the ease with which it was orchestrated, the complexity of the scheme and the corresponding complications involved in painting a clear picture for a jury such that the jurors can convict. The case was and continues to be simply too chaotic, too scattered, too unintelligible and we opine that this is by design, a master creation by a brilliant defense team.

If the Judge does not rule a mistrial, we believe there is a significant likelihood that this jury will come back without the clarity necessary to convict. Like the crimes themselves, a mistrial or a failure to convict will be deeply unjust for those defrauded, for future victims, for public trust and most importantly, for Jews everywhere and the world’s perception of us. We will once again be viewed as having a magical ability to escape unscathed.

It is very likely that when the Defendants sat with their team of lawyers, negotiated their joint defense agreements, and strategized, it was clear that the first thing they needed to manipulate was the jury. They did not trust their fates to fellow Jews, a jury of their peers, but to the diametric opposite, a mostly African America pool of jurors likely inexperienced in the private equity investment world.

Mark Nordlicht, David Levy and Joseph SanFilippo are smart, savvy and well-educated. They are the epitome of privilege and money. Nordlicht comes from a polished, Jewish, observant Yeshiva-related upbringing. Levy is much the same. These are not men who have ever had to live from paycheck to paycheck. These are not men who have experienced racism or the African American experience, a far cry in fact. And the jury, with all respect due to each of the jurors, most likely knows little about what it is to be born with a silver spoon in one’s mouth. The Defendants are, have been and will always be men of privilege. The jury, as a matter of profiling by appearance alone, does not share this providence.

The breadth of the evidence that was admitted, or excluded, was a remarkable play of legal defense gamesmanship, cleverly manipulated to share as little damaging information as possible. This is not unusual. But anyone who thinks that this was not calculated as the financiers of Platinum’s top brass were defrauding their investors is either naive or stupid. We believe, based upon previous experiences of some of that brass and their closest confidants, that Platinum Partners knew what to expect if their fiefdom fell. And as they were performing their magical feats of financial optical illusions, they set the stage for a worst-case-scenario.

Very early on the Judge presiding over the case ruled that Murray Huberfeld’s conviction for bribery, the avalanche that set in motion the public unraveling of Platinum Partners, was not permissible evidence in the case against Nordlicht, Levy and SanFilippo. The fact that Huberfeld was acting in consort with the partners at Platinum to bribe Norman Seabrook and entice COBA money was deemed to be outside the scope of the presentation that the government could make to the jury. As such, the corresponding testimony of Jonah Rechnitz in the previous trials was also not admissible evidence. The legal maneuvering was brilliant, awe inspiring.

Huberfeld acted as an Agent of Platinum Partners when he convinced Seabrook to invest. He was one of Platinum Partners’ alter egos. His actions and the resulting convictions could have set the stage for a clear picture for the jury regarding the maneuvering to bring in investors.

But it was deemed inadmissible.

The judge has already dismissed the count of “Fraudulent Investment Scheme” from the indictment.  Why? Because the government proved no match for the defense team. They failed ingloriously to use the same arguments the judge made for dismissal, as proof of guilt, namely that Platinum Partners’ partners calculated what needed to be put in place to cover their collective asses, the “CYA” term of endearment. The hiring of a valuation team was not a sign of care and compliance, quite the opposite. It was a distraction to mislead the government into believing that the valuations were conducted honestly.

 

B. Fraudulent Investment Scheme
As to the fraudulent investment scheme, defendants’ motion for a judgment of acquittal under Rule 29 is granted as to the allegation that they overvalued level 3 assets but otherwise denied.
The indictment alleges that defendants overvalued Platinum’s level 3 assets, but none of the Government’s witnesses challenged the accuracy of Platinum’s valuations of these assets. The Government has not even introduced witnesses who purport to be qualified to challenge these valuations, let alone attempted to introduce expert witnesses who could have guided the jury through assessing the values of level 3 assets – which are, by definition, difficult to value.

Case 1:16-cr-00640-BMC Document 752 Filed 06/17/19 Page 4 of 9 PageID #: 10473
5
Nor has the government shown that Platinum’s process for obtaining these valuations is so deeply flawed that the jury can fairly infer that the valuations were false, and fraudulently so. To the contrary, the testimony has shown that Platinum hired third parties to confirm its valuations; hired an experienced director of valuations; and maintained a valuation committee. There is insufficient evidence for a reasonable juror to conclude that defendants have falsified any valuations, let alone evidence that would support defendants’ conviction for fraudulently overvaluing assets.

Contrary to the Judge’s comments, Level 3 assets are not difficult to value if you mark them against the market in which they are traded. The government simply needed to find a market against which to mark the assets.

Justice will not be served because the perpetrators of the crimes have far greater knowledge of their craft than the government prosecutors. The brilliance of the defense attorneys in making it all look so complicated is not by chance. Platinum’s partners took their precautionary measures when they placed a value on the assets well above their market. They had a team of quasi-conspirators in place.

The government needed to bring in a valuation expert to counter what Platinum was suggesting, that the valuation team was evidence they they acted admirably and honestly. Our analysis is that the Defendants breached their fiduciary duty to their investors by over-valuing assets, that they had taken all the necessary precautions to make it look kosher and that this was choreographed with remarkable dexterity. In reality, the magicians at Platinum had performed what is known as “CYA” and had done so with the skill commensurate with their experience, what any good hedge fund manager would have done.

Platinum Partners’ partners knew what they were doing. The very argument that the judge makes regarding Platinum’s valuation team should be the argument that substantiates the fraud: that Platinum hired the people who would paint a rosy picture to cover up financial impropriety. They brought in Picasso and commissioned him a painting, and paint he did.

Platinum knew its assets were worth far less than they were being valued and created a charade. The told “a tale, full of sound and fury” (Shakespeare) but for them, it is signifying exactly what they wanted it to… everything. 

But we digress. As the Judge rightly pointed out, a reasonable juror would likely not have concluded that the Defendants falsified valuations.

We believe, however, that it is not because the charge is wrong but because the government did not understand that the very act of hiring a valuation committees and valuations’ experts was just part of the magic, the optical illusion.

Platinum Partners’ victims are many, a vast range of people, mostly from their own community. Their victims are also COBA members who deserve the best the government has to offer and is not getting their justice.

The Defendants’ seats in the courtroom are full, almost every day while the Plaintiff’s seats are comprised mostly of victims, their lawyers, journalists and those most curious. It is a sad state of affairs for the greater Jewish collective.

For a parent, a child can do no wrong so it is understandable that the Defendants’ families would be making a show of support. But, an acquittal poses an existential threat to the greater Jewish identity.  Not only do we surmise that these men are likely already planning their next major magic show, but we fear the darkness that would come of an acquittal.

Justice should be served. The victims are entitled to justice and the greater Jewish collective deserves the optics of an equitable distribution of accountability, only accomplished by a conviction. But the government will need to start pulling better punches, or a rabbit from a hat.

LM

If We Judge Our Criminals by the Charities to Which they Donate, Perhaps Madoff Should not be Sitting in Prison – Huberfeld?

11-175 2012-03-28 viridian response to staff inquiry of affiliate status
10-252 2012-04-17 comment-m petras
huberfeld
UPDATED: 1.22.19

The Huberfeld 45 Pages of Fluff and Madoff’s Charities

We begin with a preface. We have been accused of having a “vendetta” against Murray Huberfeld. We do not know him personally, have no reason to have a “vendetta” and find that assertion to be absurd. Our comments come not from malice but from a desire for justice, justice for all of those who have lost over the years at the hands of Murray Huberfeld and his various partnerships.

We feel that anyone who commits a crime against another, who deprives others of property, integrity, hard-earned money, trust, confidence and peace of mind deserves to be exposed and punished. We believe that the integrity of Judaism depends upon the honesty of its overtly practicing members. those like Murray Huberfeld who hold themselves out there as examples of spiritual enlightenment. We believe that the reliability of our financial systems and legal regulatory entities hinges on its enforceability and enforcement; and we steadfastly hold that the worldview of Judaism depends upon the integrity of its members and Jewish run enterprises, upon the honesty and transparency of their leaders.

That’s where Murray Huberfeld and Platinum Partners, along with all of its executives and co-conspirators comes in.

Despite what his friends and family may contrive in their own collective or individual consciousness, Platinum investors relied on the Huberfeld run funds, particularly Platinum and its historic returns.  Whether that was out of stupidity or naivete, we cannot say. Many people put their savings into Platinum, and placed their trust into the names behind it, which included Huberfeld’s name and quite frankly the names of his friends. He used them as references, shows of good-faith and good-will.  He betrayed his friends, along with his investors, each and every one of them.

Huberfeld’s friends and family can stand behind him, an admirable trait on their part, as did those of Madoff. We see little difference between the two. In fact, Madoff’s Ponzi scheme was vast in the totality of its financial numbers because it spanned unnoticed for so many years. However, contrary to Huberfeld, Madoff seems to have spent his early years as an honest businessman, someone who was trusted  and trustworthy. Madoff passed his SEC licensing exams to go on and be the chairman of NASDAQ. That he then used that influence to create goodwill and trust, which was then instrumental to the ease with which he was able to bilk investors is tragic. He was an old-school genius. People who knew him in his early years referred to him as a mensch, the old-school version, not one cloaked in a kipa, ultra-religious organizations and quasi religious worldviews. He did not couch his business in G-d, nor did he ask for leniency by citing religious enlightenment. While Madoff was just as much a Jew as Huberfeld, he is to date far less the hypocrite. How Madoff’s sense of the ethical codes of business flipped is a question we continue to ask. We are still looking for Huberfeld’s business morality which appears nowhere obvious in his historical rise.

We do not believe, an opinion based upon years of research and reports, that Huberfeld earned an honest dollar in all of the years since Kosher Delight.  Nor cam we ascribe to the belief that a criminal can be judged by the charities to which he gives; unless perhaps he, himself, lives a pauper’s life post “remorse.” Madoff’s charitable giving means nothing when ultimately it came and may now continue to be coming from money he stole, whether directly or indirectly, from his investors.  Similarly, Murray Huberfeld’s charitable giving is meaningless if it comes at the expense of those who were deprived of their money, their trust, their livelihoods, pension funds, their families’ futures, need we say more?

Murray Huberfeld’s returns to his COBA victims is a slap in the face to each and every one of his victims over the years; and it amounts to a pittance compared to the money in family trusts, both his own and those shared with other families including the Bodner family. And in reality, given his exposure and his admissions, we cannot seem to match the return of COBA funds with the crime to which he admitted. Was he complicit in defrauding COBA? Was he a conspirator in the Platinum fraud? Both the 45 pages from his lawyers waxing poetic about him and the $7M he has agreed to return seem to speak to a different crime than that to which he admitted. We are a bit perplexed.

But we digress. Were Huberfeld to feel true remorse, he would be returning ALL of the money owed to COBA, amounting to upwards of $19M; and he would be returning the money lost to Platinum’s investors. He would not be trying to apportion blame or to claim lack of knowledge to the well-executed scam that Platinum was perpetrating. Remorse means returning money lost to investors in Platinum entities. His hands were sullied by those schemes over the years. His victims deserve compensation and retribution; and he deserves punishment.

To his attorneys who so very eloquently set forth as an characteristic of his kindness his care of his parents, we say anyone with decency should care for his parents. To his attorneys who look to Kosher Delight, Sha’are Tzedek and the other charities to which he has given for a salve to wash his hands, we say that these were endeavors intended to provide a cover. To his attorneys who quoted the people he has helped with letters and videos (likely all with the dirty money he amassed) we present these two question: a) are the convicted felons in that list of supporters really credible and 2) should Madoff’s charities not have similarly been considered in reducing his sentence? 

The following is a list of charities that in 2010 were beneficiaries of Madoff’s “philanthropy.” We stand by how much we hate that word. It represents in so many contexts nothing more than hypocrisy.

Madoff also made large donations to charity like Amway

Shyam
Naive young Trivedi seems to think that giving money to good causes is a mark of honesty. The following is just part of a list of donations made by Bernie Madoff and his wife to numerous charities in the 10 years prior to his arrest.Name of Donor —- Minimum Confirmed Amount—— Recipient Name —-Year
Bernard L. Madoff—— $2,500—–American Liver Foundation-2003-2003
Ruth and Bernard L. Madoff $10,000 Brandeis University

National Women`s Committee 1999-2000
Bernard L. and Ruth
Madoff Foundation $10,000 Center for Jewish History 2006-2006
Ruth and Bernard L. Madoff $10,000 City Harvest 2005-2006
Bernard L. Madoff $10,000 Educational Broadcasting
Corporation 2006-2007
Mr. and Mrs. Bernard L. Madoff$10,000 Fountain House 2005-2006
Ruth and Bernard L. Madoff $25,000 Girls Inc. 2005-2006
Ruth and Bernard Madoff $2,500 Global Camps Africa 2007-2007
Mr. and Mrs. Bernard L.Madoff $5,000 God`s Love We Deliver 2004-2004
Ruth and Bernard Madoff $10,000 Hillel Foundation for
Jewish Campus Life 2006-2007
Ruth and Bernard Madoff $10,000 Hofstra University 2005-2006
Ruth and Bernard Madoff $1,000 Jewish Federation of
Palm Beach County 2006-2007
Ruth & Bernard L. Madoff $10,000 Learning Leaders 2004-2005
Bernard L. Madoff
Investment Securities LLC $5,000 Lower East Side Name
Tenement Museum 2006-2006
The Madoff Family Foundation $1,000,000 Lymphoma Research
Foundation 2007-2007
Bernard L. Madoff $40,000 Metropolitan Museumof Art 2007-2008
Bernard L. Madoff $2,500 Museum of Name
ModernArt (MOMA) 2005-2006
The Bernard L. and Ruth
Madoff Foundation $25,000 New York Public Library 2002-2002
Ruth and Bernard L. Madoff $10,000 New York University,
Harris Obesity Prevention
Effort (HOPE) 2007-2007
Mr. and Mrs. Bernard Madoff $1,000 North Shore – Long Island
Jewish Health System 2003-2003
Bernard L. Madoff Investment
Securities $10,000 Pace University 2002-2003
Bernard Madoff $250 Police Athletic League
of New York 2001-2002 Bernard L. Madoff $25,000 Prostate Cancer Foundation 2007-2007 Bernard L. & Ruth
Alpern Madoff `61 $25,000 Queens College , City
University of New York 2006-2007
Bernard L. Madoff $5,000 Ronald McDonald House
of New York, Inc. 2007-2007
Ruth and Bernard Madoff $1,500 Wildlife Conservation Society 2006-2007

It is also interesting to note, that (exactly as in the case of Bernie Madoff) any money given by the ‘Amway’ mob to charity, has actually first come from the victims of a fraud.
David Brear

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

images
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.

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

https://www.bloomberg.com/news/articles/2017-01-03/another-madoff-legacy-ways-for-investors-to-keep-ponzi-profits

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

“THE TRAIL OF PEOPLE WHO CALLED HIM THEIR BROTHER, THEIR BEST FRIEND”…

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.

http://video.vanityfair.com/watch/vintage-vf-bernie-madoff-s-victims-speak-out

 

For further information:

Madoff Victims’ Payout Nears $7.2 Billion, Trustee Says

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

 

Madoff and Platinum – Comparisons to be had – Pyramid Games

LETTER TO THE EDITOR:

Hi,
I noticed that you are posting quite a lot about the Madoff scandal at the moment. Please can I direct your attention to Sonja Kohn (pronounced Sonya)
This is detailed in full in the book called Pyramid games. https://www.amazon.co.uk/dp/0957619146/ref=cm_sw_r_cp_apa_oWInybEDJP0SJ
Sonja Kohn was totally vindicated by a London court despite the exposé book. 
There is already a lot of material online that you can find through Google to help find out more about her.
Wishing you every success.
Anonymous

SONJA KOHN

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The Madoff Chronicles: One of Many Lawsuits and the “investment strategy intended to safeguard assets”…

madoff

The Savvy Versus the Non-so-Savvy…

And the Littany of Jewish Defendants who were able to Maneuver a Complicated Investment Strategy.

 

The attached document is one of a litany of lawsuits associated with the Madoff Ponzi Scheme. The defendants are a veritable treasure trove of hedge funds, feeder funds, associated banks, individuals and so-on and so-on. All have one thing in common – savvy. They are all “big-boys” in Securities parlance.  

We are providing a copy of this lawsuit simply because it illustrates the ease with which Madoff was able to bilk billions of dollars from investors, some of whom are reaping the benefits of Madoff’s savvy, and their own. The Koch brothers are not alone in that category of multi-billionaire beneficiaries.

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