Madoff Must Reveal Complete List of Current Assets

December 26, 2008

(ChattahBox) — A federal judge ruled, Bernard Madoff, must provide a detailed list of all investments, loans, lines of credit, business interests, brokerage accounts and other holdings to the Securities and Exchange Commission by New Year’s Eve. Madoff’s foreign business units were given until Jan. 26 to provide a similar accounting. U.S. District Judge Louis Stanton in Manhattan wrote in a Dec. 18 order that the list must describe “the source, amount, disposition and current location of each of the items listed.”  It will give investors looking to recoup some of the $50 billion they lost in Madoff’s alleged Ponzi scheme to get a better idea what the New York financial adviser has left when he is forced to reveal his assets to regulators.

Of course handing a catalog of Madoff’s assets to the SEC to inspect seems quite dubious. Since 1999 there were a number of people who looked into Madoff’s operations and came away with serious suspicions of impropriety. In 2005 independent financial fraud investigator Harry Markopolos sent a long memo about Madoff’s fund to the SEC. The title of the memo was: The World’s Largest Hedge Fund is a Fraud. Needless to say the SEC failed to act on the information.

Angry investors including hedge funds and charities seeking the return of their funds have filed proposed class-action, or group lawsuits against Madoff and his firm following FBI allegations that he admitted the business was “one big lie.” Investment firms that did business with Madoff have also been sued. New York University said it lost $24 million in investments managed by Madoff, according to a lawsuit filed Dec. 23 in New York state court in Manhattan against fund manager J. Ezra Merkin and his Gabriel Capital LP fund and Ariel Fund Ltd. The school alleged Merkin invested NYU’s money with Madoff without telling investors or performing proper due diligence. In a separate proposed class-action against Merkin, who is also the chairman of auto lender GMAC LLC, Harry Susman, a lawyer for The Calibre Fund, alleged he misled investors by claiming to have put investor money in a “diverse portfolio of securities.” On a scary side note Merkin’s GMAC LLC just won US approval to become a bank holding company.


One Response to “Madoff Must Reveal Complete List of Current Assets”

  1. kharen on June 29th, 2009 10:03 pm

    can i havea complete list of account titles that fall under current assets?

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