Ponzi

Authorities Arrest Two More in Madoff Case

Two years now since the collapse of Bernie Madoff's massive Ponzi scheme, the picture of the largest fraud ever perpetrated is becoming clearer all the time. And while Madoff himself insisted that he acted alone, investigators and prosecutors insist that a fraud of such magnitude would have to have required the complicity and support of an entire team. To that end, indictments have been handed to two additional former Madoff employees, who now await prosecution.

The indictments were reportedly handed to Jo Ann "Jodi" Crupi and Annette Bongiorno, both having been arrested by FBI agents and remain in custody pending $5 million in bail to be posted for each. The number of those indicted in the Madoff case has now reached eight as authorities strive to put the pieces back together.

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Tags: Annette Bongiorno, bernie madoff, fbi, fraud, Jo Ann Crupi, Jo Ann Jodi Crupi, Jodi Crupi, madoff, ponzi, ponzi scheme

Madoff's Long Island Beach Home Fetches $9.41 million

by Tom Johansmeyer (RSS feed) —

Filed under: Estates, Crimes and Misdemeanors

The world's most accomplished Ponzi schemer -- right up until he got caught, that is -- finally lost his beach home. Bernie Madoff's Montauk house moved for $9.41 million, according to the U.S. Marshals Service, more than the $8.75 million for which it was listed. It sold on Friday, and the buyer is not being named. It only took a month to make the transaction happen.

Joseph Guccione, U.S. Marshal for the Southern District of New York, calls this "another step forward for the government," and though he didn't mention anything about the victims, one assumes that it's progress for them, too. After all, it would be nice if they got even a taste of this cash.

Several bidders tried to get their hands on Madoff's former home, which measures 3,000 square feet and has four bedrooms and three bathrooms. The losers can have another shot at Madoff glory, though, as properties in New York and Palm Beach, Florida, are listed. The former is on the market for $9.9 million, and the latter is listed for $8.49 million.

Madoff was unable to take a last walk through the halls of the Long Island residence, of course, because he's otherwise ~~detained~~ committed in Butner, North Carolina. But, he's adapting, having already thrown down on the block and earned himself some props.

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Tags: bernardmadoff, bernie madoff, BernieMadoff, butner, florida, madoff, madoffponzischeme, madoffscandal, montauk, new york, new york city, new york new york, NewYork, NewYorkCity, NewYorkNewYork, north carolina, NorthCarolina, palm bay florida, palm beach, PalmBayFlorida, PalmBeach, ponzi, ponzi scheme, PonziScheme

Tight Lips Won't Reveal Rothko-Madoff Connection

by Tom Johansmeyer (RSS feed) —

Filed under: Art

Last month, J. Ezra Merkin Ascot Partners LP sold his art collection, which included a hefty dose of works by Mark Rothko, for $310 million. The buyer still isn't known, which is the norm in the art market. But, there are some breadcrumbs along the way which Bloomberg News considered worth following. Interestingly, Merkin's Ascot Partners LP had invested a considerable amount of cash with Ponzi scam artist Bernie Madoff.

Along the way, Merkin's agent, TLIA, LLC, picked up $26.5 million of the $37.5 million in fees. The company is registered to a retired art collector and advisor, Ben Heller, age 83. He isn't talking. PaceWildenstein, which represents the Rothko estate, nabbed the other $11 million. Again, no comment. Yet, TLIA's piece of the commission is a bit high, according to art advisor Liz Klein, but she notes that answers are impossible without the full set of facts. Given the generally silent art market, we're unlikely to get all the facts anytime soon.

Like Merkin, Heller was a Madoff victim - $3.4 million in a charitable trust and $10 million of his own cash went down the drain.

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Tags: andrew cuomo, AndrewCuomo, art, art collecting, art collection, art collector, art market, ArtCollecting, ArtCollection, ArtCollector, artist, ArtMarket, artwork, bernard madoff, BernardMadoff, bernie madoff, BernieMadoff, madoff, mark rothko, MarkRothko, pacewildenstein, ponzi, ponzi scheme, PonziScheme, rothko, scandal