Bill Totten's Weblog

Tuesday, April 14, 2009

Myths About Madoff's 'Ponzi Scheme'

Bernie's Game Wasn't What They Told You

by Leveymg, Daily Kos (March 18 2009)

Bernie Madoff's colossal investment fraud is almost everywhere described as a "Ponzi scheme". That echoes the very words Madoff, himself, used to describe it to the FBI agents who arrested him on December 11.

I've been running "basically, a giant Ponzi scheme", he told investigators. But, that was quite misleading.

Madoff gives the impression that his scam was a classic, self-contained Ponzi, wherein the first investors see the payouts and later investors are the ones whose capital provides the payouts. In that scheme, Ponzi pockets the proceeds.

But, it didn't really work that way. Madoff Securities was not designed to rip-off its own customers. Instead, it sustained itself over four decades by an infusion of money from "feeder fund" franchizes, the proceeds of which were methodically diverted into hidden accounts. It was part multi-level marketing, part money-laundering scheme, and part bleed-out fraud designed to provide a cover for conversion of funds that would be used by banks a continent or two away from Madoff's Manhattan headquarters.

And, it really wasn't an ethnocentric raid designed to impoverish any particular national or religious group - that would be killing the Golden Goose, but it may have had that effect. Madoff's biggest clients were powerful banks and politically well-connected, philanthropic men who owned them. Their customers will get some of their money back through deposit guarantee insurance, law suits and other institutional safeguards. Madoff's own customers get first crack at funds eventually recovered - there is no way that Madoff spent $65 billion on caviar and vintage wine.

An accounting of Madoff's real estate and personal property, including that placed in the name of his wife, Ruth, amounted to no more than $67 million - not a lot by Wall Street standards. Bernie was smart, emotionally controlled, and personally frugal. His refusal to take the deal reportedly offered by the feds - trade what he knows for allowing Ruth to keep most of their joint assets - is telling. No, Bernie didn't squander it all away. Most of the money his fund piled up over the years is still out there.

This was a giant money-laundering scheme. Madoff was convicted of two counts of money-laundering, along with other charges. He refused to admit to the involvement of others, which is what the prosecution wanted him to do, so the offered plea deal was withdrawn. A Ponzi involves a single hub that draws in cash to the center - Madoff's network was a money pyramid that involved multiple players moving money upward, each taking a share. That is a distinction with a real difference - this is not a completed prosecution. That still leaves the question of who the US Attorney thought Madoff was working with. Here's an obvious place to start:

The answer to where that money is goes back to where it came from.

The Feeder Funds - Swiss Bankers, Aristocrats and Vultures Wrapped up in TARP

As for the feeder funds, seventeen of the twenty largest investors in Madoff Securities were banks or insurance companies. The others were huge "funds of funds", unregulated hedge funds and private equity funds. It was the comparative small-fry who got scalded. The bankruptcy courts will have to come to the rescue of many of the 4500 individual investors and those who were attracted through smaller feeder funds.

Most of the biggest losses were sustained by large Swiss, Euro and Asian banks - but, they will survive, and their customers will eventually receive some sort of substantial recovery or part of a government bail-out. Like so many scandals of the era, this too will pass, and public attention will wane.

But, take a good look, anyway.

Tremont Group Holdings, Inc - Robert Schulman

The third largest institutional investor in Madoff's scheme is Tremont Group Holdings Inc, a fund of funds owned by Massachusetts Mutual Life Insurance Co. Tremont is attached to an institution so big that its customers are also likely to regain the $3.3 billion in reported losses as the result of investor law suits. A 2007 Hoover's profile characterized the firm as follows: "Tremont Group Holdings wants to make you a tremendous amount of money - and to make a tremendous amount for itself, as well ..." {1}

Prior to his well-timed resignation as Chairman in July 2008 after the Mass Mutual takeover, Tremont had been run by its founder Robert Schulman. Tremont was one of Madoff's "early customers". Schulman now runs a charity with his wife, and invests in real estate. He is named as a co-defendant in an investors' suit along with Tremont, Mass Mutual and the company's auditing firm, KPMG (Bearing Point), which recently announced its own bankruptcy. Deja vu? {1}, {2}

The Independent Funds

There were only three independent funds among the top feeders: Fairfield Greenwich Group, Walter Noel's hedge-fund, ($7.5 billion in losses); Ascot Partners, headed by former GMAC Chairman Ezra Merkin ($1.8 billion); and Access International Advisors ($1.2 billion), a European investment fund.

AIA - Rene-Thierry Magon de la Villehuchet

In 2007, AIA took over management of the Rothschilds family bank portfolio previously managed by UBS. AIA founder, Rene-Thierry Magon de la Villehuchet, committed suicide in his Manhattan office days after the Madoff scandal became public.

Villehuchet had carved a lucrative franchize for himself peddling access to the exclusive Madoff connection among Europe's richest glitterati, including Bettencourt family heirs to the L'Oreal cosmetics family.

* * *

Most of these private hedge funds were not only rich, they had close ties to government officials and political figures, access to public money, and knew how to benefit from bailouts. Ezra Merkin was chair of two large American industrial corporations, GM and Chrysler, which have already received more than ten billion dollars in TARP bail-outs, and are currently seeking more.

Ascot Partners - J Ezra Merkin

J Ezra Merkin is also owner of a large stake in Bank Leumi, the privatized national bank of Israel, which he acquired with partner Stephen Feinberg, founder of Cerberus Capital Management, which grew (along with others) during the Sharon - Olmert era from a bank holding company into a large global hedge fund.

Accusations abound that Noel and Merkin failed to perform due diligence, and in some cases, allegedly deceived their own customers that they were placing client funds with Madoff. For well over a decade, Madoff had a reputation on The Street not only for phenomenally steady returns but also the whiff of illegitimate methods. The only thing that nobody could quite figure out was how he did it. Suspicions were quietly voiced that he was using insider knowledge gained from his proprietary trading platform that was adopted by the NASDAQ exchange Madoff headed.

But, if the preliminary findings are indeed correct, Madoff hasn't been trading listed stocks in customer accounts for at least thirteen years. But, Bernie nonetheless managed to consistently pay out tens of billions in dividends during that period. At the eight to seventeen percent annual returns his investors were reportedly receiving, that would have depleted the fund's capital in half that time. It is arithmetically not possible that Madoff was simply paying his older investors out of the funds gained from newer, and only from those funds. As one long-term investor who got out a couple years ago remarked, Bernie "never missed a quarter". If he wasn't trading, Bernie had to have another source of funds, someone who was. A feeder relationship can operate in both directions, if regulators aren't looking very closely at both ends. And, in fact, as we are learning, regulatory authorities in several countries in the last decade have been legally blind.

Among the Madoff feeder-funds, closest attention has focused on Ascot Partners. But, J Ezra Merkin also operates a hedge firm, Gabriel Capital, which partnered with Cerberus in the takeover of the distressed US auto industry and made a big move into the defense sector during the Bush years. The partnership left companies in both sectors worse off for their attentions, but made these hedge funds owners hundreds of millions richer. Money lost in operating failing companies have been made up by lucrative government contracts and bailouts, a not entirely unexpected bonus.

The new TARP loans now being sought are in addition to the $13.4 billion the US Treasury lent earlier to Merkin's GM, and Fineberg's Chrysler. In 2006, GM sold 51 percent of Merkin's GMAC to Feinberg's private equity firm Cerberus Capital Management LP (which also owns Chrysler). In May 2004, Feinberg's private equity group, Cerberus Capital Management, LP (Cerebrus is the three-headed dog that guards Hades), became majority owner of IAP Worldwide Services, Inc, one of the US Army's largest contractors in Iraq. IAP was at the center of the Walter Reed Army medical center privatization scandal. (For the sordid details of this fetid corner of pirate capitalism, see note {4} below.)

Other key parts of the business model pursued by Madoff's private feeder funds has been political influence-peddling and its financial partner, money-laundering, facilitated by bank secrecy. Merkin and Feinberg are major campaign contributors to GOP candidates and backers of the Likud Party and other right-leaning parties in Israel. Merkin is involved in the same fundraising network for Israeli charities as Morris Talansky, a secretive financier and philanthropist. Talansky's illegal campaign contributions to Israeli PM Ehud Olmert led to the Israeli Prime Minister's resignation. Haaretz reports, "Olmert's close associates called Talansky 'the banker' or 'the launderer'". {5}

Cerberus-Gabriel has earned a global reputation as a politically-connected "vulture capital" firm. As a hedge fund, it plays the downside, and swoops in on distressed firms considered essential to the national interest. Characteristically, it breaks companies up and sells off their assets when it cannot successfully green-mail governments, extracting huge concessions and cash incentives in several countries. "Crash and burn", in the parlance.

Fairfield Greenwich Group - Walter Noel

Walter Noel, like Merkin, is well connected, both financially and politically. According to the WSJ, his fund was part of the fund of funds of the Swiss private bank Union Bancaire Privee (UBP), "one of the world's largest managers of funds of funds. As of June, it managed some $124.5 billion." {6}

UBP pioneered the use of hedge funds in private equity, and is currently the world's second largest hedge fund manager. Because of Swiss resistance to international efforts to stem money-laundering, the Madoff scandal has offered the first opportunity to peek inside some of the inner workings of this most secretive of major global financial operators. Noel was also an active contributor to conservative political parties in the United States and Israel. Noel and his wife have contributed to the presidential campaign funds of John McCain, George W Bush, Dan Quayle and George H W Bush.

* * *

Look Closely, and You'll See a Snake Swallowing Its Own Tail

Recall that Madoff's Securities was actually a network of banks connected to hedge funds connected by "funds of funds", drawing from a half-dozen major large feeder funds and about thirty smaller brokers. Many of them escaped official scrutiny, and were virtually self-regulating. Their auditing was either non-existent, or unreliable. The scam went on for at least fourteen years, yet no one in a position to notice blew the whistle, and the feeders kept depositing funds in Bernie's accounts. See Table below.

These funds accounts were deposited at a number of US and foreign banks. At that point, a curtain has been drawn down on what happened to the $64.8 billion principal and reported earnings in the fund. The strange secrecy about Madoff's foreign bank accounts has been imposed by the court - in itself, this is a red-flag that this was no conventional Ponzi scheme.

Table 1: "Madoff's Victims: A List of Reported Victims and Their Exposure", in Wall Street Journal (December 17 2008), page A14. (Victims For Whom No Exposure Amount Is Available Are Not Shown.)

Fairfield Greenwich Advisors (investment management firm): $7500 million.
Tremont Capital Management (fund of funds run by Tremont Group Holdings): $3300 million.
Banco Santander SA (Spanish bank): $2870 million.
Ascot Partners (hedge fund founded by GMAC chief J Ezra Merkin): $1800 million.
Access International Advisors (New York investment firm): $1400 million.
Fortis Bank Nederland NV (Dutch bank): $1350 million.
Union Bancaire Privee (Swiss bank): $1000 million.
HSBC Holdings PLC (British-Chinese bank): $1000 million.
Natixis SA (French investment bank): $560 million.
* Carl Shapiro (former chairman Kay Windsor Inc): $550 million.
Royal Bank of Scotland (British Bank): $492.76 million.
BNP Paribas (French Bank): $431.17 million.
BBVA (Spanish bank): $369.57 million.
Man Group PLC (British hedge fund): $360 million.
Reichmuth & Co (Swiss private bank): $327 million.
Nomura Holdings Ltd (Japanese brokerage house): $303 million.
Maxam Capital Management Inc (fund of funds based in Dairen, Connecticut): $280 million.
EIM SA (European investment manager with $11 billion in assets): $230 million.
Aozora Bank Ltd (Japan bank in which Cerebus Capital owns majority stake): $137 million.
AXA (French insurer): $123 million.
UniCredit SA (Italian bank): $92.39 million.
Nordea Bank AB (Swedish bank): $59.13 million.
Hyposwiss (Swiss private bank owned by St Galler Kantonalbank): $50 million.
Banque Bendict Hoetsch & Cie SA (Swiss private bank): $48.8 million.
City of Fairfield-Connecticut (town pension fund): $42 million.
Bramdean Alternatives (asset manager): $31.2 million.
Haredi Insurance Investments & Financial Services Ltd. (Israeli insurer): $14.2 million.
Societe Generale (French bank): $12.32 million.
Groupama SA (French insurer): $12.32 million.
Credit Agricola SA (French bank): $12.32 million.
Richard Spring (individual investor): $11 million.
RAB Capital (hedge fund): $10 million.
Banco Populare (Italian bank): $9.86 million.
Korea Teachers Pension (Korean pension fund): $9.1 million.
Jewish Community Foundation of Los Angeles: $6.4 million.
Neue Privat Bank (Swiss bank): $5 million.
Clal Insurance Enterprise Holdings Ltd (Israeli financial services): $3.1 million.
Mediobanca SpA (via its unit Compagnie Monegasque de Banque): $671000.

Now, squint, and it becomes a snake swallowing its own tail.


I've stated my theory of the case, and it just so happens to parallel the one the prosecution based their case on: Madoff couldn't pull this off alone. He was working with other parties. There is a whole pile of money out there - it isn't all gone.

We can debate the size of the actual residuals all day. I can accept the proposition being put forward by NPR and others that the true value of the fund was closer to $20 billion than $65 billion. I assume that "churn" (trading assets back and forth to increase their notional value) is part of how Bernie operated with others in his circle. But, that doesn't change the essential part that there's still a big pile of loot out there, and someone's holding it and obtaining use value from it. Is it in a foreign bank or banks? The court imposed secrecy on that part, so we should probably assume that some of it is being held by foreign banks. Was some of it rebated to one or more feeder funds? Why haven't these questions been answered? Obviously, there are some problems with this prosecution - but, that's just my opinion.

Bernie refused to reveal what he knows about the disposition of the missing funds, so the US Attorney withdrew the proffered plea agreement. Bernie goes to jail for life - his wife won't keep the $72 million in goodies. The case might end there, but I'm trying to answer the questions Madoff (and the prosecution) won't.

My biggest issue with the term "Ponzi Scheme" is that it implies what forensic investigators call a "hub and spoke" scam with money feeding from victims to a single spider at the center. The fact is, however, that Bernie's fund actually was structured as a multi-level Pyramid Scheme, with money moving up levels, each layer taking a cut. That's a distinction with a major difference - others were involved in the conspiracy - and, that implies the prosecution is not yet complete.

I am not the one who made the original assumption of a conspiracy - the FBI and US Attorney did. I am not the one who assumed that the Madoff fund was a "fund of funds". That's how its described in the court record, a characterization that even finds its way into paragraph 24 of the reputable reporting.

So, when I say, it is really not a Ponzi scheme and the first place to look for the remaining loot is the major feeders and the banks, that is hardly a leap. It is, at least to me, the most obvious.

What I find to be absurd is the assumption that someone is willing to go to jail for life leaving his wife destitute for no good reason. Why wouldn't Bernie give the feds the details of where those funds went?

Madoff doesn't claim they never existed or they were all spent. The government found in its Forfeiture Demand that $177 billion went through Madoff's fund over the course of thirteen years. According to SEC filings and multiple sources in sworn statements to federal investigators, Madoff's fund declined perhaps $10 billion during 2008 before it went belly up last December. That leaves a lot of money made in previous years that simply disappeared.

The money is real. Someone has it. Anyone who states otherwise is making an extraordinary assertion that requires extraordinary proof.

Why is this so hard for some to grasp? Goes to show the power of a media-created meme of a one-man "Ponzi scheme" that's really an international money laundering ring. More on this in a following installment.


{1} Tremont Group Holdings, Inc. (Rye, New York) in Hoover's Inc.

{2} Tremont Group Funds Invested $3.3 Billion With Madoff by Katherine Burton, Bloomberg (December 15 2008)

{3} Pomerantz Law Firm Sues KPMG and Tremont Group in Madoff Related Derivative Action On Behalf of Rye Select Broad Market XL Fund (Globe Newswire, New York (February 04 2009)

{4} Larger CIA and DoD Privatization Scandal Emerging from Walter Reed Story, US Attorneys Firing [Rumsfeld, Top GOP Figures Profited from Privatization of VA Hospital, CIA Contractors] by Leveymg, Daily Kos (March 10 2007)

{5} Olmert financier prefers to avoid the limelight by Uri Blau, S Shamir and G Leshem, Ha'aretz (October 6 2008)

{6} UBP Scrambles to Explain Madoff Ties by Cassell Bryan-Low et al, Wall Street Journal (December 30 2008)

Bill Totten


  • I agree Mr Totten. Thank you for taking the time to put in writing some of things passing through my busy mind. Perhaps we are on the same wave length. Logic does command that all the money did not evaporate. However clearly a great deal of it must have been lost in the markets over the past year or so.

    That said, come into my mind for a minute and think outside of the box of the Madoff matter. To me his matter is merely chump change. My concerns are about about all that went down in the financial and politcal relms long before and after Bernie Madoff got caught in the market tumble.

    As far as Madoff goes I keep asking myself a question. How do I know Madoff is really in jail and not out somewhere living the life of Reilly because he knows too much about the nonsense of it all? you weren't born yesterday and neither was I. Do you trust what lawyers, cops, the media or any govenment entity has to say about anything? I know I don't.

    Before you doubt my reasoning perhaps you should study this email exchange before and after Madoff plead guilty, then the link I provided you to prove my integrity and then give me a call sometime (506 756 8687) if you wish to know more. Trust that I can tell you many things that are hard to believe then prove to you the truth of all I say in a heartbeat.

    Best Regards

    From: "Olsen, Wendy (USANYS)"
    Date: Tue, 31 Mar 2009 09:21:08 -0400
    To: David Amos, USANYS-MADOFF, "Litt, Marc (USANYS)"
    Cc: webo,,,

    Thank you for your response.

    Wendy Olsen
    Victim Witness Coordinator

    -----Original Message-----
    From: David Amos []
    Sent: Tuesday, March 31, 2009 8:48 AM
    To: USANYS-MADOFF; Olsen, Wendy (USANYS); Litt, Marc (USANYS)
    Cc: webo;;;

    Ms Olsen

    Thank you for keeping me informed.

    Yes unseal all my emails with all their attachments immediately and
    make certain that the US Attorny's office finally practices full
    disclosurement as to who I am and what my concerns are as per the Rule of Law within a purported democracy.

    As you folks all well know I am not a shy man and I have done nothing wrong. It appears to me that bureacratic people only use the right to privacy of others when it suits their malicious ends in order to protect their butts from impreacment, litigation and prosecution.

    The people in the US Attorney's Office and the SEC etc are very well aware that I protested immediately to everyone I could think of when the instant I knew that my correspondences went under seal and Madoff pled guilty so quickly and yet another cover up involing my actions was under full steam. Everybody knows that.the US Government has been trying to keep my concerns about the rampant public corruption a secret for well over seven long years. However now that a lot of
    poeple and their countries in general are losing a lot of money people are beginning to remember just exactly who I am and what i did beginning over seven years ago..

    Veritas Vincit
    David Raymond Amos
    506 756 8687

    P.S. For the record Obviously I pounced on these Yankee bastards as
    soon as the newsrag in Boston published this article on the web last night.

    Notice that Nester just like everyone else would not say my name? It is because my issues surrounding both Madoff and are NOT marketing timing They are as you all well know money laundering, fraud, forgery, perjury, securites fraud, tax fraud, Bank fraud, illegal
    wiretappping and Murder amongst other very serious crimes.

    "SEC spokesman John Nester dismissed similarities between Markopolos and Scannell's cases as "not a valid comparison."

    He said the SEC determined the market-timing by Putnam clients that Scannell reported didn't violate federal law. Nester said the SEC only acted after another tipster alleged undisclosed market-timing by some Putnam insiders.

    Scannell, now a crusader for SEC reforms, isn't surprised the agency
    is in hot water again.

    Noting that several top SEC officials have gone on to high-paying private-sector jobs, he believes hopes for future employment impact investigations. "It's a distinct disadvantage to make waves before you enter the private sector," Scannell said."

    --- On Mon, 3/30/09, David Amos wrote:

    From: David Amos
    To:,, "oig",,,, "Dan Fitzgerald"
    Date: Monday, March 30, 2009, 10:00 PM

    Need I say BULLSHIT?

    ---------- Forwarded message ----------
    From: David Amos
    Date: Mon, 30 Mar 2009 00:03:13 -0300
    Cc:,,, jacques_poitras

    ---------- Forwarded message ----------
    From: David Amos
    Date: Sun, 29 Mar 2009 23:40:55 -0300
    To:, MartiK1,
    "Paul. Harpelle", Jason Keenan, Kandalaw

    From: "Peck,Dave"
    Date: Sun, 29 Mar 2009 22:32:32 -0400
    Subject: Out of Office AutoReply: USANYS-MADOFF FW: IMPORTANT
    To: David Amos

    I will be unavailable until 4/1/09.

    Deputy Chief MacNamara will be in charge while I am away.

    He can be reached at 254-4831 or email him at

    I will not be checking emails or cell phone messages.

    Thank you,

    Chief Dave Peck

    ---------- Forwarded message ----------
    From: David Amos
    Date: Sun, 29 Mar 2009 23:32:18 -0300

    ---------- Forwarded message ----------
    From: David Amos
    Date: Sun, 29 Mar 2009 23:19:35 -0300

    -----Original Message-----
    Sent: Saturday, March 28, 2009 3:06 PM

    In United States v. Bernard L. Madoff, 09 Cr. 213 (DC), the Court
    received a request from NBC and ABC to unseal all correspondence from victims that has been submitted in connection with the case. This includes your email to the Government. If the correspondence from victims is unsealed, the victim's personal identifying information including name, address, telephone number and email address (to the extent it was included on the correspondence) will become public. The Government must submit a response to the request by NBC and ABC by Tuesday, March 31, 2009.

    Please let us know whether you consent to the full disclosure of your correspondence, or whether you wish to have your correspondence remain sealed for privacy or other reasons. If you wish to have your correspondence remain sealed, please let us
    know the reason. We will defend your privacy to the extent that we

    Thank you.

    I looks like the US attorney in New York finally has to unseal my
    emails that you dudes have been sitting on for quite some time for no reason I will ever understand other than you are just a bunch of

    I know NBC, ABC, your blogger buddies or any other media wacko will never say my name but the pissed off folks that lost a lot of money with Bernie Baby just may ask how the hell I am EH?

    Veritas Vincit
    David Raymond Amos

    From: David Amos
    Date: Wed, 11 Mar 2009 15:48:50 -0300
    Subject: Fwd: Trust that whatever covert deal that Bernie Madoff and
    KPMG etc may make with the Feds they are not fooling mean old me

    ---------- Forwarded message ----------
    From: David Amos
    Date: Wed, 11 Mar 2009 15:29:42 -0300
    Subject: Fwd: Trust that whatever covert deal that Bernie Madoff and
    KPMG etc may make with the Feds they are not fooling mean old me
    Cc: webo

    ---------- Forwarded message ----------
    From: "Olsen, Wendy (USANYS)"
    Date: Tue, 10 Mar 2009 19:08:04 -0400
    Subject: RE: Trust that whatever covert deal that Bernie Madoff and
    KPMG etc may make with the Feds they are not fooling mean old me

    On March 10, 2009, the Honorable Denny Chin provided the following guidance for victims who wish to be heard at the plea proceeding on
    March 12, 2009 at 10:00 a.m.:

    Judge Chin stated that there are two issues that the Court will
    consider at the hearing: (1) whether to accept a guilty plea from the defendant to the eleven-count Criminal Information filed by the Government, which provides for a maximum sentence of 150 years' imprisonment; and (2) whether the defendant should be remanded or released on conditions of bail, if the Court accepts a guilty plea. Judge Chin also stated that, at the hearing on March 12, 2009, he will conduct a plea allocution of the defendant and then will announce whether the Court intends to accept the plea. At that time, the Court will solicit speakers who disagree with the Court's intended ruling.

    Assuming the defendant pleads guilty and his plea is accepted by the Court, the Court intends to allow the Government and defense counsel to speak on the issue of bail. The Court will then announce its intended ruling on that issue. The Court will then invite individuals who disagree with the proposed ruling on bail to be heard.

    The Court noted that there will be opportunity for victims to be
    heard in the future on the subjects of sentencing, forfeiture and restitution in advance of any sentencing of the defendant. The Court also noted that it is not appropriate for victims who wish to speak concerning sentencing issues to be heard at the March 12, 2009 proceeding.

    A link to the a transcript of the March 10, 2009 Court hearing can
    be found on the website of the United States Attorney's Office for the Southern District of New York:

    -----Original Message-----
    From: Olsen, Wendy (USANYS)
    Sent: Monday, March 09, 2009 10:56 AM
    Subject: FW: Trust that whatever covert deal that Bernie Madoff and
    KPMG etc may make with the Feds they are not fooling mean old me

    -----Original Message-----
    From: David Amos []
    Sent: Friday, March 06, 2009 12:58 PM
    To:; Nardoza, Robert (USANYE);
    USAMA-Media (USAMA); Olsen, Wendy (USANYS)
    Cc: oig
    Subject: Trust that whatever covert deal that Bernie Madoff and KPMG etc may make with the Feds they are not fooling mean old me

    ---------- Forwarded message ----------
    From: "Sartory, Thomas J."
    Date: Fri, 6 Mar 2009 07:41:20 -0500
    Subject: RE: I did talk the lawyers Golub and Flumenbaum tried to discuss Bernie Madoff and KPMG etc before sending these emails

    Dear Mr. Amos,

    I am General Counsel at Goulston & Storrs. Your email below to
    Messers. Rosensweig and Reisch has been forwarded to me for response.
    While it's not clear what type of assistance, if any, you seek from
    Goulston % Storrs, please be advised that we are not in a position to help you.

    Please do not send further communications to any of our
    attorneys. We will not be able to respond, and your communications
    will not be protected by the attorney-client privilege.

    We wish you well in the pursuit of your concerns.


    Thomas J. Sartory

    -----Original Message-----
    From: David Amos [mailto:
    Sent: Wednesday, March 04, 2009 8:18 PM
    To: Rosensweig, Richard J.;; Reisch, Alan M.;
    Subject: Fwd: I did talk the lawyers Golub and Flumenbaum tried to discuss Bernie Madoff and KPMG etc before sending these emails

    Perhaps somebody should call me back now. EH? (506 756 8687)

    By Blogger David Raymond Amos, at 6:17 AM, May 17, 2009  

  • Opps please excuse dumb old me. I just noticed that somebody else wrote that article. I was researchng someone mentioned within it and then scanned it too quickly after I took an interest and agreed with what was written and posted by you. At least we both agree with the unidentified writer correct?

    Best Regards

    By Blogger David Raymond Amos, at 6:35 AM, May 17, 2009  

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