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

Mark Nordlicht – The Line That Says it All

MarkNordlicht

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

https://www.platinumlp.com/About_MarkNordlicht#

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.  http://www.marketwatch.com/investing/stock/msdi  

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”.  http://stocktwits.com/symbol/MSDI

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: http://www.nasdaq.com/press-release/monster-digital-inc-exhibits-new-products-at-hudson-group-show-20161209-00411

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.   

TWEETS TO FOLLOW:

Continue reading

IMPLANT SCIENCES – A PLATINUM PARTNER???

Platinum Partners, Implant Sciences Shareholders Heats Up

http://www.nasdaq.com/article/platinum-partners-implant-sciences-shareholders-heats-up-20161227-00331

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 Lillian.Rizzo@wsj.com


Read more: http://www.nasdaq.com/article/platinum-partners-implant-sciences-shareholders-heats-up-20161227-00331#ixzz4U5k8PfHG

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.

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