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

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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.

Kushner, President Trump, The sins of the Father, Platinum… Part I

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http://forward.com/news/361035/jared-kushner-and-the-white-haired-mystic-whose-dad-got-a-ride-from-a-dead/

Jared Kushner and the White-Haired Mystic Whose Dad ‘Got a Ride’ From a Dead Sage

Jared Kushner’s family charities have given hundreds of thousands of dollars to a mystical Moroccan rabbi who some followers claim has miraculous powers.

The rabbi, David Chananya Pinto, is little known in the United States but has a coterie of wealthy backers. Two separate Kushner family foundations on whose boards Jared Kushner serves have given over $210,000 in grants to Pinto’s New York City study center.

It’s hard to square Donald Trump’s clean-cut, Modern Orthodox son-in-law with the white-bearded mystic who tells a story about a night in 1968 when his father got a ride from a second-century sage driving an Israeli-made station wagon.

Yet Kushner has shown an interest in Judaism’s mystical corners.

Kushner and his wife, Ivanka Trump, plan to attend a Washington synagogue affiliated with the Chabad Hasidic group, a movement rooted in Jewish mysticism. And days before the presidential election, the couple visited the grave of the group’s former leader, where believers say prayers may be answered with miracles.

A spokesperson for Kushner would not comment on the foundations’ donations to Pinto’s charity. Pinto’s New York study center, Chevrat Pinto, did not respond to a request for comment.

The Kushner family are Modern Orthodox stalwarts, founders of a Modern Orthodox high school in New Jersey and members of Modern Orthodox synagogues. But while Modern Orthodox theology de-emphasizes the folk magic and mysticism found in some corners of Jewish tradition, magical beliefs have grown popular among rank-and-file Modern Orthodox Jews.

“There is definitely an upswing in turning to magic,” said Rabbi Alan Brill, a professor of Jewish studies at Seton Hall University. Brill has written on the phenomenon in an essay onModern Orthodox Jews in New Jersey reviving the ancient Jewish magical practice of baking keys into challah bread.

Brill also said that the popularity of traveling charismatic mystics was rising among some Modern Orthodox Jews. “It’s a different relationship than having to sit through a congregation each week,” he said.

Pinto is one of a handful of mystically inclined rabbis gaining popularity in the United States and Israel. His better-known nephew, Rabbi Yoshiyahu Yosef Pinto, attracted a large following of wealthy Jews in the United States and Israel before ending up in an Israeli prison for bribing a high-ranking police officer.

Yoshiyahu Yosef Pinto was released from prison January 25 after serving a one-year sentence. He says he is no longer a rabbi.

Rabbi David Pinto wears the familiar black coat and hat of the ultra-Orthodox Ashkenazim, but he descends from a North African Jewish tradition of miracle workers and saints. Pinto’s ancestors were prominent rabbis; the grave of his great-great grandfather is a popular pilgrimage site for Moroccan Jews. Pinto’s organization describes his father and his grandfather, both rabbis, as “miracle workers.”

Pinto leads institutions in France and Israel, but he regularly visits his New York study center, where his followers include Jews from mainstream Modern Orthodox backgrounds alongside members of the French Jewish community. He delivers his lectures in English, speaking with a French accent.

Stories of the miracles that his father and grandfather worked, and the belief that they can continue to influence daily events, appear to play a major role in Pinto’s religious message. In a May 2016 lecture delivered in Mexico City and available online, Pinto told a story about his father getting picked up on the side of the road in 1968 by the purported author of the Zohar, Rabbi Shimon bar Yochai, who lived roughly 2,000 years ago.

According to Pinto, his father, Rabbi Moshe Ahron Pinto, lived 40 years in prayerful seclusion in his home in Morocco, and then, in 1968, sought the permission of the dead sage bar Yochai to move his family to Israel. Moshe Ahron Pinto traveled to Ashdod, then took a taxi to bar Yochai’s crypt in Meron. He finished praying late at night. A disciple who had accompanied him thought they would be stuck near the crypt until dawn, but as soon as they reached the road, an Israeli-made station wagon, an Autocars Sussita, appeared. The driver took them to a house in a nearby village.

“My father went out [of the car], [the disciple] closed the car, and suddenly there was no car,” Pinto said.

Pinto said his father told the disciple that the driver was bar Yochai, and that if he told anyone of the miracle he would die.

The idea that righteous rabbis have the power to perform miracles is a familiar one in mystical Jewish traditions, and particularly among North African Jews. In the literature of Pinto’s organization, dead rabbis and even Pinto himself are credited with causing everyday miracles to occur.

 

An article in the 2010 English-language edition of a magazine published by his organization in Paris reports that a “great miracle happened” at the home of a Chicago follower who hosted Pinto: Two days after receiving Pinto’s blessing, the follower’s daughter was matched with a man whom she eventually married.

The article also reports that after Pinto promised a French follower that God would “perform a miracle for you this week” if the man spent one more hour a day studying the Torah, the man’s son narrowly escaped electrocution.

The story claims that Pinto knows things by miraculous means. “Many people are surprised by the way that the Rav knows and sees things from afar,” the article says. Pinto, the authors report, denies being a prophet. “Everything is due to the merit of the fathers,” it quotes him saying.

In a brief recollection presented in a December 2016 weekly bulletin published by Pinto’s Israeli organization, Pinto claimed that a German boy had been revived from a three-month coma after a man who hosted him on a visit to Morocco prayed at the grave of Rabbi Chaim Pinto, his great-great grandfather.

“I would never dare bang on the tombstone of my grandfather,” Pinto wrote. “However, [the man] did it naturally, and he was answered immediately!”

In New York City, Pinto has a study center, called Chevrat Pinto, in an Upper West Side brownstone. The study center received between $10,000 and $50,000 from a Kushner family foundation nearly every year from 2004 to 2013. Jared Kushner sits on the boards of the two foundations that made the grants, the Charles and Seryl Kushner Family Foundation and the C. Kushner Companies Foundation. He is one of seven coequal directors of the Charles and Seryl Kushner Family Foundation, according to 2014 tax documents, and was a member of a board of directors led by his mother at the C. Kushner Companies Foundation, which no longer exists.

In total, Chevrat Pinto received $217,000 from the Kushners’ two foundations.

Jared Kushner’s aunt and uncle, Marisa and Richard Stadtmauer, have been ever more generous. Their family foundation has given Chevrat Pinto $592,000 in grants since 2009.

To read the article in its original format click here.

Platinum Partners – One Description

Unbelievable description of the Platinum fraud.

http://www.houstonchronicle.com/business/article/The-fall-of-Black-Elk-Energy-10855360.php

The fall of Black Elk Energy began in New York City nearly a decade ago, with a meeting, a handshake and a loan.

Looking back, those were halcyon days for John Hoffman, founder of the Houston oil and gas company – before an explosion tore through an offshore rig and killed three workers, before federal investigators accused the hedge fund that made the loan of bilking investors, and before one of his top executives turned on him.

Hoffman, forced out of Black Elk in 2014, is now at the helm of a new company, and barely keeping the doors open. Black Elk is bankrupt and facing criminal charges in a federal case awaiting trial. And Hoffman’s one-time backer, Platinum Partners, is under federal indictment, accused of pillaging Black Elk and the hedge fund’s investors.

Last month, federal investigators arrested six Platinum executives and the man who replaced Hoffman as CEO, alleging they overvalued Black Elk’s assets, concealed “severe cash flow problems,” extracted high management fees and illegally diverted to Platinum more than $95 million owed to creditors holding Black Elk’s bonds. Platinum attorneys did not return calls seeking comment.

“I didn’t think (Platinum) had the guts to take it all,” Hoffman said in an interview. “I thought they’d take a large share. Ends up they took it all.”

The rise and fall of Black Elk Energy highlights the risks of the oil and gas business, which demands piles of cash that can quickly vanish through bad luck, bad planning, bad management or all three. It also reveals a shadow banking system that lends at double-digit interest rates to firms desperate for capital and has few qualms about gutting companies when they don’t perform.

BLACK ELK TIMELINE

MONEY TRAIL

2003 Investment manager Mark Nordlicht starts the hedge fund Platinum Partners in New York.

2007 Engineer John Hoffman and a partner open Black Elk Energy in Houston.

2008 Hoffman and partner fly to New York looking for capital; meet Platinum executives.

2009 Black Elk buys 35 oil fields on 71,000 acres from the Houston company W&T Offshore for $30 million, the first major purchase of many to come.

2011 Black Elk ends year with 240 oil production platforms in the Gulf of Mexico on 300,000 acres, producing about 14,500 barrels of oil and gas per day.

2012 Workers welding on a company platform in the Gulf ignite fuel vapors, leading to a string of exploding tanks and killing three.

2013 Black Elk signs drilling contracts worth about $90 million, but Platinum reneges on promises to send capital and Black Elk can’t pay the contractors.

2014 Renaissance Offshore, a Houston production company, buys Black Elk oil fields for $170 million; Platinum engineers a bondholders vote, federal investigators say, that diverts $95 million in proceeds to Platinum rather than contractors and bondholders.

2015 Federal prosecutors file involuntary manslaughter and other charges stemming from the Gulf explosion against Black Elk and contractor Grand Isle Shipyards. Black Elk files for bankruptcy.

2016 The U.S. attorney of the Eastern District of New York announces the indictment of six Platinum executives and one Black Elk executive, alleging they overvalued Black Elk assets, concealed “severe cash flow problems,” extracted high management fees and illegally diverted to Platinum money owed to bondholders.

Hoffman now says he had no idea of the financial disaster he was walking into when he flew from Houston to New York in 2008 and made a deal with Platinum. He thought he had found a deep-pocketed partner to fuel his vision for Black Elk at a time when loans were hard to come by. Even after disaster struck an offshore rig in the Gulf of Mexico, Platinum seemed to have the money and confidence to right Black Elk and put it back on a path to success.

But one day in 2014, Hoffman got suspicious pretty quickly.

Knocking on doors

The following account is based on interviews, financial filings and court records in civil and criminal cases:

Hoffman started Black Elk in 2007, raising money from private investors and using the cash to buy shallow-water oil fields in the Gulf for bottom-barrel prices from companies that no longer wanted them. Black Elk reworked the old wells with updated technology and boosted production.

Not a year later, the U.S. economy crashed, and oil prices with it. In late 2008, Hoffman and co-founder James Hagemeier flew to New York City to nail down capital. Over the course of two months, they knocked on the doors of at least 50 investment firms.

“It was a tough time to look for funds,” Hoffman said.

Finally, a middleman suggested the two meet the executives of the New York hedge fund Platinum Partners.

Platinum was founded in 2003 by Mark Nordlicht, who started as a young trader in the pits of the New York Cotton Exchange and opened two other investment firms before Platinum. He and Platinum gained a reputation for investing in risky companies and returning double-digit profits for investors.

Platinum offered Black Elk two loans together worth about $50 million – at 20 percent interest. But Platinum’s business model didn’t just loan money to desperate companies. The loans came with “kickers,” or clauses that gave Platinum growing ownership stakes in the firms over the lives of the loans.

“We were new and so small,” Hoffman recalled. “We didn’t draw much interest from the bigger players. Platinum seemed like a good fit.”

In 2009, Black Elk began a buying spree with Platinum’s cash, later supplemented by $150 million raised in a bond sale. By 2011, it owned leases on 300,000 acres in the Gulf of Mexico that produced about 14,500 barrels of oil and gas per day, according to securities filings.

“All I know was when we had an acquisition, Mark Nordlicht said, ‘Don’t worry about it,’ ” Hoffman said. “And he always had the money.”

By 2012, Black Elk, with a market value that Platinum estimated at nearly $300 million, was the largest asset in Platinum’s most successful fund, then valued at $700 million. Then it all unraveled.

In November 2012, workers welding on a Black Elk platform ignited fuel vapors, leading to a string of exploding tanks. The explosion killed three workers, injured at least two others and spilled hundreds of gallons of oil into the Gulf.

The fall out was immediate for Black Elk’s finances. Oil production fell. Legal fees mounted. (In 2015, federal prosecutors filed involuntary manslaughter and other criminal charges against Black Elk and contractor Grand Isle Shipyards, which both pleaded not guilty. Hoffman was not charged individually.)

BUSINESS

It’s official. Whataburger has been dubbed the winner of taste over In-N-Out and Shake Shack, according to BuzzFeed .  Buzzfeed dubs Whataburger better than In-N-Out, Shake Shack Houston Salsa Congress workshop participant Harrison Bohanan follows instructor Franklin Liranzo’s dance moves to warm up before a class Saturday in Houston. Houston Salsa Congress attracts veterans seeking stress relief A group of economists who believe in the thesis of “cash only, no strings” founded GiveDirectly, just give cash, unconditionally, to poor adults in Africa. Kenya is one of the main countries it operates in. In eliminating poverty, cold hard cash goes a lot further than Cattle are inspected for ticks near Laredo. Experts are trying to pinpoint how the ticks ended up 110 miles north of the border. Spread of fever tick spooks Texas cattle industry Indian airline SpiceJet buying 100 Boeing 737 MAX jets Consumers look over toys for sale before Christmas in Harare, Zimbabwe. A cash crunch is so severe that banks are capping customer withdrawals at $150 a week. Cash is king in Mugabe’s Zimbabwe
Black Elk’s lenders reduced lines of credit and demanded more collateral. Black Elk started selling assets to raise cash.

Still, in December 2012, Hoffman flew to New York to present Black Elk’s growth strategy to Nordlicht and another Platinum executive, David Levy. Platinum promised as much as $120 million in capital for the company’s 2013 drilling campaign, Hoffman said, and Black Elk signed drilling contracts worth about $90 million with energy services companies.

Four months later, Platinum reneged on its pledge, leaving Black Elk unable to pay the contractors.

“It was just such a deep hole,” Hoffman said. “We couldn’t dig out of it.”

‘This is code red’

By the start of 2014, Black Elk had a new chief financial officer, Jeffrey Shulse, a lawyer and accountant whom Hoffman had hired a few years earlier to run a well-plugging company created by Black Elk. Platinum pushed Hoffman hard to make Shulse the CFO of Black Elk, Hoffman said.

Shulse wanted Hoffman out of the company. He wouldn’t comment for this story but said in a court deposition that Black Elk was ineptly managed, spending money it didn’t have on luxuries like boats, helicopters and cigar rooms at the office. Hoffman began secretly tracking and reading Shulse’s every email, Shulse said in the deposition; Shulse hired investigators to see if Hoffman had bugged his office.

Black Elk was by then effectively insolvent, federal investigators said.

Platinum, however, owned a $98 million stake in Black Elk, about 76 percent of the company, according to Hoffman’s files. And Platinum had a plan to get as much money back from the sinking oil company. It ordered Shulse to find a buyer willing to pay $170 million for Black Elk’s seven most valuable oil fields.

Shulse, meanwhile, was secretly trying to get Hoffman’s job. In March 2014, Shulse sent an email to Levy asking to take over as Black Elk CEO – and, according to the indictment, get paid $1 million from sales of the Black Elk’s assets.

“I want to be aligned with Platinum and friends of Platinum,” Shulse wrote in an email seized by investigators. “What’s good for them is good for me.”

Shulse found a buyer, the Houston production company Renaissance Offshore, for the Black Elk holdings. But Platinum still had a problem. The terms of Black Elk’s bonds required the company to pay off bondholders before it did anything else with the money.

Platinum was having its own problems. No longer generating double-digit returns, investors were pulling out money, and Platinum was barely able to pay redemption requests to investors, according to the indictment. Failure to cash in on Black Elk assets would “be the end of the fund,” Nordlicht wrote in an email. “This is code red,” he later said.

By May 2014, Platinum executives decided they had to persuade bondholders to let Black Elk use the sale proceeds for other purposes than paying off the bonds. And that change required a vote of the bondholders.

Hoffman didn’t like the move. But he didn’t oppose it, either. What bondholder “with half a brain,” Hoffman thought, would agree to give up his rights?

Platinum, again, had it figured out. It began buying Black Elk bonds – so that it could vote to pay itself, according to the indictment.

Platinum executives leaked information about Black Elk’s finances, driving down the value of the bonds, which they then bought at healthy discounts, federal prosecutors alleged. By April 2014, Platinum owned $99 million of the original $150 million in bonds, but concealed its ownership, investigators said, by selling all but $18 million to four investment funds that Platinum controlled.

With Platinum and its entities holding most of the bonds, the proposal to spend the cash from the oil field sales as the company saw fit was easily approved.

Ripping TVs off walls

On Aug. 18, 2014, Platinum sent an email to Shulse directing him to wire $70 million to Platinum. Two days later, Black Elk sent another $25 million from the Renaissance sales to Platinum.

The next Monday, Hoffman showed up at Black Elk. The doors were locked and office vacated, he said, and he had to call the building superintendent to get in. What was left of the company had moved in with Shulse’s well service company, which was by then also controlled by Platinum.

Not a week later, Shulse, now CEO, held something of a yard sale in the old office. Afterwards, former Black Elk employees said they went back inside the building. Computers, refrigerators and office furniture were all gone. Trash littered the floor. TVs yanked out of the walls, mounts and all, left fist-sized holes in the drywall.

“What a disgraceful way to go out,” Hoffman said.

By then, Black Elk had laid off about 100 workers, most of its staff.

On Sept. 11, 2014, Platinum authorized Shulse to pay himself a $275,000 bonus. Platinum executives, meanwhile, were paying themselves as well, according to the indictment. From 2012 to 2015, even as Black Elk crashed and Platinum scraped for cash, executives consistently told investors the fund was returning double-digit profits, justifying charges of as much as 20 percent in management and incentive fees, or $111 million in total over the four years, federal authorities alleged.

Many of Black Elk’s contractors were never paid. In August 2015, some filed a petition to liquidate Black Elk through Chapter 7 bankruptcy and use the proceeds to pay creditors. By the following June, Platinum didn’t have enough cash to pay investors trying to pull their money out the Platinum fund.

On Dec. 19, the U.S. Attorney of the Eastern District of New York announced the indictment of seven on fraud and conspiracy charges: Platinum executives Uri Landesman, Joseph Sanfilippo, Joseph Mann, Daniel Small, Levy and Nordlicht as well as Shulse. They all pleaded not guilty.

U.S. Attorney Robert L. Capers, whose office investigated the case, estimated that investors in Platinum’s fund lost $1 billion.

Shulse’s attorney, F. Andino Reynal, said Shulse was told what to do by Platinum.

“He didn’t commit a crime here,” Reynal said. “I’m very confident that once the jury has heard all the facts, they’ll determine he’s not guilty.”

Hoffman’s hands still shake when talking about Platinum. His cheeks still redden. The scandal has hamstrung his new company, P3 Petroleum, which can’t raise money to grow. The company pumps about 50 barrels a day and employs seven workers.

“We’ve been going at it for more than two years now,” Hoffman said. “We don’t have a lot to show for it.”

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

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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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:

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