Monday, December 06, 2010

Madoff Trustee Sues HSBC Over Servicing a Fraud -

Two Madoff stories of note:

Madoff Trustee Sues HSBC Over Servicing a Fraud -
"The latest lawsuit contends that the Madoff fraud “could not have been accomplished or perpetuated unless the HSBC defendants agreed to look the other way and to pretend that they were ensuring the existence of assets and trades when, in fact, they did no such thing.”

It asserts that HSBC and a dozen of its subsidiaries “aided, enabled and sustained” Mr. Madoff’s fraud in two important ways: by lending the bank’s prestige and performing services for hedge funds that raised money for Mr. Madoff; and by developing complex derivative products that provided additional sources of cash for the Ponzi scheme."

and wait
Wait, so the Mets came out ahead? Even ignoring opportunity costs, a win for the Mets is noteworthy!

Madoff Case Lingers as a Menace to Mets -

"Although there had been widespread speculation that the Wilpons lost money in the Ponzi scheme, an account called Mets Limited Partnership put a total of $522.7 million into Madoff accounts and withdrew $570.5, a profit of $47.8 million, according to a 2009 bankruptcy court filing made by Picard in New York that detailed the “net winners.”

With the Wilpons said to be emerging as net winners, they remain a target for Picard, who has until midnight Saturday to file lawsuits to recover money that was withdrawn from Madoff accounts before the scheme’s collapse or to seek punitive damages from those involved in the withdrawals."
Enhanced by Zemanta

No comments: