THE PLATINUM QUESTION – WAS ANYBODY LISTENING?

PLATINUM PARTNERS AND THEIR OUTRAGEOUS RETURNS

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:

https://lostmessiahdotcom.wordpress.com/2016/04/13/the-seabrook-connection-investments-gone/

https://lostmessiahdotcom.wordpress.com/2016/04/15/the-long-short-nope-the-dead-undead/

https://lostmessiahdotcom.wordpress.com/2016/04/14/theres-not-enough-time-in-the-day-to-discuss-nordlicht-huberfeld-bodner/

READ FURTHER:

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

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

 

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.

Continue reading

Chai – Black Elk, Regents Amongst the Most Optionable of Connections

The 18 Cases to Follow – A Thread that Ties Black Elk, Platinum and Optionable, Inc. – oh… and Where’s Bodner?

 

Schmidt v. Nordlicht et al

Filed: December 9, 2016 as 4:2016cv03614
Plaintiff: Richard Schmidt
Defendant: Mark Nordlicht, David Levy, Daniel Small and others
Cause Of Action: Notice of Removal
Manchester Management Company, LLC et al v. Echo Therapeutics, Inc. et al

Filed: November 29, 2016 as 1:2016cv09217
Plaintiff: Manchester Management Company, LLC , Manchester Alpha, L.P. , Jeb Partners, L.P. and others
Defendant: Echo Therapeutics, Inc. , Michael Goldberg , Shepard Goldberg and others
Cause Of Action: m(a) Securities Exchange Act
Romain et al v. Seabrook et al

Filed: October 31, 2016 as 1:2016cv08470
Plaintiff: Elizabeth Ann Romain , Herman Jiminian , Jeanette Feliciano and others
Defendant: Norman Seabrook, Elias Husamudeen , Joseph Bracco and others
Cause Of Action: Racketeering (RICO) Act
Matthews et al. v. Black Elk Energy Offshore Operations, LLC et al. We have downloadable decisions or orders for this case

Filed: March 9, 2016 as 4:2016cv00611
Plaintiff: Thomas G. Andrus , WHITE MARLIN ENERGY SERVICES, INC. , Guy E Matthews and others
Defendant: Black Elk Energy Offshore Operations, L.L.C. , John G. Hoffman, IRON ISLAND TECHNOLOGIES INC. and others
Cause Of Action: R&R re motions to remand (non-core)
Matthews et al. v. Black Elk Energy Offshore Operations, LLC et al.

Filed: November 30, 2015 as 1:2015cv09362
Plaintiff: Thomas G. Andrus , White Marlin Energy Services, Inc. , Guy E. Matthews and others
Defendant: Black Elk Energy Offshore Operations, LLC , John G. Hoffman, Iron Island Technologies Inc. and others
Cause Of Action: R&R re motions to remand (non-core)
Bank of Montreal v. Optionable, Inc.

Filed: March 18, 2014 as 14-860
Plaintiff-Counter-Defendant – Appellee: Bank of Montreal
Defendant: Optionable, Inc., MF Global Inc., Edward J. O’Connor and others
Defendant – Appellant: Kevin P. Cassidy
Kalter et al v. Fireman’s Fund Insurance Company

Filed: August 22, 2013 as 1:2013cv23029
Plaintiff: Mark Nordlicht , Dahlia Kalter
Defendant: Fireman’s Fund Insurance Company
Cause Of Action: Diversity-Notice of Removal
Shutts & Bowen LLP v. Regent Capital Partners, LLC et al

Filed: March 20, 2012 as 1:2012cv21116
Plaintiff: Shutts & Bowen LLP
Defendant: Regent Capital Partners, LLC, Laura Huberfeld, Murray Huberfeld and others
Cause Of Action: Diversity-Breach of Contract
Stettin v. Regents Capital Partners, LLC et al We have downloadable decisions or orders for this case

Filed: December 8, 2011 as 0:2011cv62612
Defendant: Murray Huberfeld, Naomi Bodner, David Bodner and others
Plaintiff: Herbert Stettin
Cause Of Action: Motion for Withdrawal of Reference
Stettin v. Regents Capital Partners, LLC et al

Filed: December 8, 2011 as 0:2011bk00061
Defendant: Regents Capital Partners, LLC, Laura Huberfeld, Murray Huberfeld and others
Plaintiff: Herbert Stettin
Cause Of Action: Motion for Withdrawal of Reference
Discala v. Nordlicht et al

Filed: November 10, 2011 as 9:2011cv81253
Defendant: Platinum Partners, Ari L. Glass, David Bodner and others
Plaintiff: Abraxas J. Discala
Cause Of Action: Diversity-Libel, Assault, Slander
Bank of Montreal v. Optionable, Inc. et al

Filed: August 28, 2009 as 1:2009cv07557
Plaintiff: Bank of Montreal, Bank of Montreal, Bank of Montreal
Defendant: Optionable, Inc., MF Global Inc., Kevin P. Cassidy and others
Cause Of Action: Diversity-Fraud
CMEG Nymex Inc. v. Optionable, Inc. et al

Filed: April 10, 2009 as 1:2009cv03677
Plaintiff: CMEG Nymex Inc.
Defendant: Optionable, Inc., Kevin Cassidy, Pierpoint Capital, Inc. and others
Cause Of Action: Securities Exchange Act
Bock v. Optionable Inc. et al

Filed: June 22, 2007 as 1:2007cv05948
Plaintiff: Stanley T. Bock, Stanley T. Bock, Stanley T. Bock
Defendant: Optionable Inc., Kevin Cassidy, Mark Nordlicht and others
Cause Of Action: Securities Exchange Act
Glaubach v. Optionable Inc. et al

Filed: May 24, 2007 as 1:2007cv04085
Plaintiff: Jonathan Glaubach, Jonathan Glaubach, Jonathan Glaubach and others
Defendant: Optionable Inc., Kevin Cassidy, Mark Nordlicht and others
Cause Of Action: Securities Exchange Act
Peters et al v. Optionable, Inc. et al

Filed: May 17, 2007 as 1:2007cv03877
Plaintiff: Edward Peters, Edward Peters
Defendant: Optionable, Inc., Mark Nordlicht, Kevin P. Cassidy and others
Cause Of Action: Securities Exchange Act
Manowitz v. Optionable Inc. et al

Filed: May 17, 2007 as 7:2007cv03884
Plaintiff: Gerald Manowitz, Gerald Manowitz
Defendant: Optionable Inc., Kevin Cassidy, Edward J. O’Conner and others
Cause Of Action: Securities Exchange Act
Fleiss v. Optionable Inc. et al

Filed: May 11, 2007 as 1:2007cv03753
Plaintiff: Alexander Fleiss, Alexander Fleiss
Defendant: Optionable Inc., Mark Nordlicht, Kevin Cassidy and others
Cause Of Action: Securities Fraud

A Platinum Reality – Has the Passage of Time Taught us Nothing? – 2005 NorCrown – Another Fraud

David Bodner, Murray Huberfeld and Charles Kushner – Enforcement Actions – Have we Learned Nothing?

People don’t change. Their moral compasses do not suddenly become righted. They don’t go from being serial fraudsters and morally bankrupt to charitable and altruistic. Opportunism is opportunism and that will not change, particularly as history has played out in regard to Murray Huberfeld, David Bodner and the rest of the Platinum Partners cast of characters. The scenarios of changed but the pattern of fraud has remained the same as has the ability to shield themselves from punitive consequences.

Murray Huberfeld has been credited with his “Philanthropy” but the money that he so “generously” gives away is nothing short of blood money garnered and obtained off the backs of his victims. As we see it, he is no altruist, he is an opportunist to the very core of his being.

David Bodner, while cleverly managing to remain in the shadows, is no less the player in the fraud game and contemptible. In our view, he has simply managed to hide it in a level of polish lacking in Huberfeld. 

Charles Kushner would need far more than one article to analyze. Unlike Huberfeld and Bodner, he has paid some dues for his reprehensible financial dealings. We must admit that we do find it somewhat questionable that Kushner’s links to Trump did not get addressed during the most recent presidential election…. a discussion for another day, but certainly the basis for significant speculation.

Huberfeld, while being blatant in his financial abuses, has managed to shield himself and his money, from those whom he has defrauded for years. He likely has an arsenal of cash and diamonds hidden for him and his family in trusts and other vehicles that have loopholes making them untouchable. 

Is it not about time that we look to the patterns of history to unwind the events of today?

2005 

Continue reading

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

Continue reading

Platinum -Paying Back…. Precious little – Huberfeld/Bodner – Follow the Money

 

Huberfeld Ponzi1.3

Hedge Fund Platinum Partners to Pay Back Fraction of What Firm Owes

The hedge fund is under federal fraud investigation

http://www.wsj.com/articles/platinum-partners-plans-to-repay-around-80-million-to-investors-1475859524

Hedge fund Platinum Partners plans to pay back around $80 million to investors in the coming months, less than 10% of what the firm owes in total, according to people familiar with the matter.

Platinum, whose practices are the subject of a federal investigation, as of this summer said it had $1.25 billion under management.

Its executives, as recently as this month, continued to tell investors they hope to return the entirety of that sum over time, though they haven’t said exactly when they will do so.

Bernard Fuchs, one of the firm’s co-owners, will likely be among those paid first, the people said. Mr. Fuchs, 70 years old, had requested last year to pull some of his money even as he encouraged other investors to stay put, the people said.

Mr. Fuchs said he requested the money back “for charitable donations” connected to his foundation. He said the withdrawal constituted “a fraction of my money in the fund.”
Previous Coverage

Insurer Sues Executives Tied to Platinum Hedge Fund (Sept. 29)
Adviser With Ties to Hedge Fund Platinum Put Client Funds in It

Platinum’s first planned repayments to investors come as federal investigators conduct a fraud probe focused on Platinum, which had reported some of the most consistent returns in the hedge-fund industry. In addition, in June, Platinum co-founder Murray Huberfeld was arrested for his role in the alleged bribery of a New York City Correction Officers’ Benevolent Association official in exchange for an investment. Mr. Huberfeld and the union official denied wrongdoing.

That same month, Platinum announced it would suspend all redemptions and move to liquidate. The firm has said it is cooperating with all investigations.

To read the article in its entirety click here.