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

 

Following the Platinum Property… Murray Signing over Quit Claim Deeds to Miami Property to Laura

IF ONLY THE AUTHORITIES WOULD PAY AS MUCH ATTENTION AS OUR READERS!!! TO THOSE OF YOU WHO ARE PAYING ATTENTION, THANK YOU!!!

 

Murray Huberfeld, Signing over Property to his Wife… For Love and Affection

https://www2.miami-dadeclerk.com/OfficialRecords/StandardSearch.aspx?

 

2016 R 670496 QCD 11/21/2016 30315 / 3281 27891/454 UNIT 1101 S
HUBERFELD LAURA (D)
HUBERFELD LAURA
2016 R 670496 QCD 11/21/2016 30315 / 3281 27891/454 UNIT 1101 S
HUBERFELD LAURA (R)
HUBERFELD LAURA
2016 R 670496 QCD 11/21/2016 30315 / 3281 27891/454 UNIT 1101 S
HUBERFELD MURRAY (D)
HUBERFELD LAURA

Kushner Family – A Platinum Valued Connection – Have You been Paying Attention????

 

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[Originally reported in the New York Post on September 12, 2016]

Family of Trump’s son-in-law linked to hedge fund probe

The troubled New York hedge fund that is plaguing the city prison guards’ union has also ensnared the family of Donald Trump’s son-in-law Jared Kushner, The Post has learned.

Hedge fund firm Platinum Partners, which is being investigated by Brooklyn federal prosecutors, was short on cash and desperately borrowing money in the days leading up to the June arrest of one of its co-founders, documents shows.

Among the people it turned to for cash were Marisa and Richard Stadtmauer, the aunt and uncle of Jared Kushner, according to a document from Platinum’s court-appointed liquidator, a copy of which was obtained by The Post. Kushner is married to Trump daughter Ivanka.

On May 27, Marisa Stadtmauer loaned Platinum $4.1 million, the liquidator said. It got another $6.4 million from Richard Stadtmauer, the brother of Kushner’s mother, Seryl, and former vice chairman of family’s real estate empire, Kushner Companies.

Platinum, which is headquartered in Manhattan, also received a $2.3-million loan from the National Society for Hebrew Day Schools the same day it borrowed money from the Stadtmauers, the document said.

Rabbi Zvi Bloom, executive director of the national educational organization, did not return a request for comment.

Shortly after the loans were made, Platinum’s co-founder and Stadtmauer’s pal, Murray Huberfeld, was arrested and charged with bribing Norman Seabrook, the head of the NYC prison guards’ union for a $20 million investment.

Seabrook was also arrested and relieved of his post as head of the Corrections Officers’ Benevolent Association.

Stadtmauer didn’t return requests for comment about the money, which was revealed in a court document filed by liquidation firm RHSW Caribbean, which has taken over Platinum’s flagship fund at the direction of a judge in the Cayman Islands, where the fund is registered.

His chances of being repaid are looking slim.

At the time of the loan, the flagship fund — which makes up the bulk of Platinum’s $1.3 billion in assets — had just $68,530 in cash.

The cash pile has since grown to $881,976, RHSW said. Still, it’s not enough to make a dent to the $365 million Platinum ‘s flagship fund owes Wall Street traders and other lenders, RHSW said.

Stadtmauer and Huberfeld’s ties go back more than a decade as investors in NorCrown Bank, a Livingston, N.J., bank controlled by Kushner’s dad Charles.

 

To read more click here.

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

Platinum and Black Elk – an Explosive Combination

http://www.reuters.com/article/us-platinumpartners-lawsuit-idUSKBN1481BI

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

 

Top executives of New York-based hedge fund manager Platinum Partners were arrested on Monday and charged with running an approximately $1 billion fraud that federal prosecutors said became “like a Ponzi scheme” as its largest investments lost much of their value.

Mark Nordlicht, Platinum’s founding partner and chief investment officer, was arrested at his New Rochelle, New York, as federal prosecutors in Brooklyn accused him and six others of participating in a pair of schemes to defraud investors.

“The charges relating to these two schemes highlight the brazenness and the breadth of the defendants’ lies and deceit,” Brooklyn U.S. Attorney Robert Capers told reporters.

Led by Nordlicht, Platinum, the subject of a Reuters Special Report in April, was known for years for producing exceptionally high returns by taking an usually aggressive approach to investing and fund management. (reut.rs/2h36duU) (reut.rs/1TRovwx)

But a 48-page indictment said since 2012, Nordlicht and four other defendants defrauded investors by overvaluing illiquid assets held by its flagship Platinum Partners Value Arbitrage Fund LP, mostly troubled energy-related investments.

This caused a “severe liquidity crisis” that Platinum at first tried to remedy through high-interest loans between its funds before selectively paying some investors ahead of others, the indictment said.

“So to some extent, there is a Ponzi-esque aspect to this scheme,” Capers said.

Prosecutors said David Levy, Platinum’s co-chief investment officer, and Uri Landesman, the former president of the firm’s signature fund, also participated in the scheme, which prosecutors said allowed Platinum to extract more than $100 million in fees.

Nordlicht, Levy and Jeffrey Shulse, former chief executive officer of Platinum’s majority-owned Black Elk Energy Offshore Operations LLC [BLCELB.UL], also schemed to defraud bondholders of Black Elk, a now-defunct Texas energy company, out of $50 million, prosecutors said.

The indictment said the scheme involved using a group of reinsurance companies called Beechwood, partially controlled by Platinum’s principals, to rig a bond vote and pay the hedge fund manager ahead of creditors.

A Platinum spokesman declined to comment. Nordlicht’s lawyer did not immediately respond to requests for comment. Michael Sommer, Levy’s lawyer, said he looked forward to clearing his client.

Lawyers for the other defendants did not immediately respond to requests for comment.

Founded in 2003, Platinum until this year had more than $1.7 billion under management, with more than 600 investors, authorities said. Its Value Arbitrage fund reported average returns of more than 17 percent from its inception, according to prosecutors.

This year, a series of investigations tied to Platinum came to a head. The firm hired an independent monitor in July to unwind its funds, and a Cayman Islands court in August placed its main offshore funds into liquidation.

Those moves came after the June arrest of Murray Huberfeld, a longtime Platinum associate, on charges in Manhattan federal court that he orchestrated a bribe to the head of the New York City prison guards’ union, Norman Seabrook, to secure a $20 million investment with the firm.

Seabrook pleaded not guilty, as did Huberfeld who was also arrested.

Two weeks later, the FBI and U.S. Postal Inspection Service raided Platinum’s Manhattan offices in a separate fraud investigation that culminated in Monday’s indictment.

Others indicted on Monday include Joseph Sanfilippo, Value Arbitrage’s former chief financial officer; Joseph Mann, a former Platinum marketing employee; and Daniel Small, a Platinum managing director.

The U.S. Securities and Exchange Commission said on Monday that it was seeking a court-appointed receiver for funds managed by Platinum Credit Management, the firm’s second-largest vehicle after Value Arbitrage.

The case is U.S. v. Nordlicht et al, U.S. District Court, Eastern District of New York, No. 16-cr-640.