The media has lost track of Walter Noel this summer and I can’t find him. Is he summering in Southampton? Anyone know?
And can you figure out how he’s allowed to stay in his beach cottage (last rented out, summer of 2009, for $375,000 per month) when he’s on the hook for a couple of billions of dollars? And how, four years on, is he still free?
Madoff Trustee, Fairfield Group liquidator agree on settlement. That might at first blush sound like good news for our Round Hill resident but then there’s this:
The settlement allows the liquidators of the Fairfield funds to work together with Picard to purse [sic] assets from the former owners and managers of the Fairfield funds, David Sheehan, the Madoff trustee’s chief counsel, said in Picard’s statement.
I think Walt’s going to have a troubled retirement.
Reader IL sends along this arbitration award: $1.8 million against a Madoff feeder fund. Not Walter’s and his Fairfield Greenwich Group, but same cause of action, same facts. The old homestead on Round Hill Road draws closer to the auction block.
May 17 (Bloomberg) — An investor in J. Ezra Merkin’s Ascot Partners LP, a feeder fund for Ponzi schemer Bernard Madoff, was awarded $1.75 million by arbitrators who found Merkin intentionally breached his fiduciary duty by not disclosing Madoff’s role in the fund, according to a court filing.
Merkin also was negligent in performing due diligence on Madoff, a majority of an arbitration panel found, according to a petition filed today in New York state court. Investor Noel Wiederhorn, who put $1.46 million into Ascot Partners in 2003 and 2004, is seeking a judgment confirming the award, which was for the amount he invested plus interest.
Wiederhorn, a Wycoff, New Jersey, pediatrician, also asked that the sealed record of the arbitration case be made public.
“These findings could have significance in later litigation and arbitrations against Mr. Merkin as well as against numerous other Madoff feeder-fund managers,” Weiderhorn’s attorney, David Bamberger, wrote in asking for the record to be unsealed.
The evidence showed “major contradictions and ambiguities” in transaction confirmations, which should have caused Merkin to question the Madoff trades, according to his filing. The evidence in the hearing also established the “extreme improbability” of the transactions Madoff reported in the over-the-counter options market, the papers said.
When Bernie Madoff went down last December 11th his largest co-conspirator, Fairfield Greenwich Group, kept its website up for days, allowing ghouls like me to capture images of its promises of due diligence. That will prove a mistake in the years of litigation FGG now faces.
Galleon Group will not repeat Walt Noel’s mistake, as Business Insider discovered when its editor attempted to access their page and got this: (Bess Levin suggests that they’ve taken down the page pursuant to a really cool re-do, but I think she’s being funny)
Bernie Madoff may be preparing to shuffle off this mortal coil but Walter Noel is still golfing in the Hamptons, resting up, no doubt, for his hearings in Boston that commence September 9th. But now comes news that investors who lost money with Bernie are suing the feeder funds that fed Walter and Fairfield Greenwich Group who in turn fed Madoff. The first out of the box is a suit against something called Chartered Investments (or something like that). The first thing someone like Chartered will do in a situation like this is to implead – sue – Fairfield, saying, in effect, “if we’re responsible for our clients’ losses, then you’re really to blame, because we relied on your due diligence, which you didn’t perform.” I don’t know if this will add to the $7.5 billion FGG admits it lost to Madoff, but it’s certainly going to add to its legal fees. I wonder whether Andres has found a buyer for that yacht yet?
A reader sent me this link to a WSJ article which I missed in all the excitement of setting up my new business venture (below). Massachusetts’s AG rejected an offer from FGG to compensate all that state’s victims for every penny they lost. The AG claims his state’s residents lost $6 milion with FGG, FGG said “okay, here: take it back”. Not sufficient. The AG wants more discovery and, prossibly, this being a position held by politically ambitious persons (see Blumenthal, Richard, eg), a show trial. Hmmm. More fun scheduled for September 9th.