Bernie Madoff

Nothing About the Madoff Thing Surprises Any Mets Fans

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Mr. Met gives me bad touches every summer.

I’ve been avoiding writing about Irving Picard, the trustee in charge of getting money for the victims of the Bernie Madoff Ponzi scheme, and his lawsuit against New York Mets owners Fred Wilpon and Saul Katz. It’s too painful. It’s like being close enough to see Oliver Perez’s face just as you know things are going to completely unravel but still hoping against hope that he’ll throw a strike. It’s like wondering if David Wright spends his nights crying softly while Mike Piazza texts him weekly updates on how many days he has until he’s an unrestricted free agent. I know what’s happening; I just don’t like to talk about it.

But, as we mentioned in Morning Docket, Picard’s massive complaint was made public today. He says Wilpon and Katz made $300 million in fictitious profits from business dealings with Madoff.

As you read through the allegations, try to remember how poorly the Wilpons make decisions about whom to hire, whom to fire, and how much to play baseball players — and then tell me if you are at all surprised by anything here…

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A Millionaire Paul Weiss Partner Might Get Money from His Ex-Wife — Thanks to Bernie Madoff

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Steven Simkin is too cool for a necktie.

Being married to a Paul Weiss partner is nice; getting divorced from a Paul Weiss partner is even nicer. Thanks to the prestigious firm’s eye-popping profits, getting divorced from a PW partner should give you a seven-figure payday (assuming the Paul Weiss partner has been a partner for a while and is the “monied spouse” — a pretty safe assumption, unless you work at, say, Goldman Sachs).

But when you get that gigantic payment — like winning the lottery, but without all the taxes — can you feel confident in its finality? Or do you have to worry that your ex-spouse, a partner at a firm known for its aggressive and brilliant lawyering, will find a clever way to get some of that money back from you, years later?

Consider the tale of Steven Simkin, a Paul Weiss partner of almost three decades, and his ex-wife Laura Blank, who works in education. It involves a multimillion-dollar marital estate, residential properties in Manhattan and the tony suburb of Scarsdale, and an investment account with one Bernie Madoff.

And yes, for your voyeuristic pleasure, the tale comes with hard numbers, lots of numbers…

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A $7.2 Billion Settlement Generates Money for Madoff Victims

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Irving Picard

Rack up another win for trustee Irving Picard, the partner at Baker Hostetler who’s cleaning up the Bernard Madoff mess. On Friday, Picard and Preet Bharara, the headline-making U.S. attorney for the Southern District of New York, announced a $7.2 billion settlement with the estate of Jeffry Picower (no it’s not spelled “Jeffrey”).

Picower, a successful investor and prominent philanthropist, earned billions — both real, through investing with Goldman Sachs, and fictional, through investing with Madoff — before he died in October 2009. Picower was found dead in the swimming pool of his home in Palm Beach, apparently after suffering a heart attack (a plot device familiar to viewers of Brothers & Sisters and The OC). If he had held on until January 2010, Picower would have avoided the estate tax.

Of the $7.2 billion settlement, $5 billion will go to Picard, to settle the complaint he filed against Picower in bankruptcy court, and $2.2 billion will go to the Department of Justice — the largest civil forfeiture payment in U.S. history. All of this money will eventually find its way to qualifying Madoff victims.

Based on monies collected to date, what kind of recovery might Madoff’s victims be looking at?

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Madoff Son Found Dead in Suicide (By Legendary Litigator Martin London)

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Mark Madoff, R.I.P.

Mark Madoff, the oldest of Bernard Madoff’s two sons, committed suicide on Saturday, by hanging himself in his Manhattan apartment. Saturday was a significant day: the second anniversary of Bernie Madoff’s arrest for running a multibillion-dollar Ponzi scheme.

Mark Madoff’s lawyer, prominent Paul Weiss partner Martin Flumenbaum, issued a statement yesterday: “Mark Madoff took his own life today. This is a terrible and unnecessary tragedy…. [Mark Madoff was] an innocent victim of his father’s monstrous crime who succumbed to two years of unrelenting pressure from false accusations and innuendo.”

Flumenbaum wasn’t the only powerful Paul Weiss personage named “Martin” with involvement in this case. Mark Madoff’s body was actually found by legendary litigator Martin London, a longtime partner at the firm who is now of counsel at PW.

As noted on his Paul Weiss website bio, “[t]he gamut of Mr. London’s successes is vast.” But his experience is primarily on the civil side, with occasional forays into white-collar criminal work. His docket generally doesn’t include violence and death; he’s not the kind of lawyer who sees dead people (e.g., a homicide prosecutor).

So how did Marty London come to find Mark Madoff’s body?

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How Well-Endowed Is Bernie Madoff?

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Bernie Madoff Bernard Madoff.jpgYou know you want to know….
Hazard a guess. Then click on the link below.
Bernie Madoff’s Greatest Scam Of All [Dealbreaker]
Earlier: What Kind Of Package Is A Bernie Madoff Package?

Bad News for the Brothers Madoff?

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Bernie Madoff Bernard Madoff.jpgOr maybe good news? It seems they’ll get to enjoy Labor Day weekend before any trouble hits.
Read more and discuss over at Dealbreaker.
Federal Prosecutors May Let Andy And Mark Madoff Enjoy Labor Day Weekend
[Dealbreaker]

Another Conviction in the Madoff Mess

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Bernie Madoff Bernard Madoff.jpgFrank DiPascali, the former CFO — chief fraudulent officer? — for Ponzi schemer extraordinaire Bernard Madoff, pleaded guilty today to a variety of charges, including securities fraud, falsifying records, and international money laundering.
Read more and comment over at Going Concern.
Guilty Madoff CFO Update [Going Concern]

Marc Dreier Gets 20 Years

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Marc Dreier small Mark Dreier Marc Drier Marc S Dreier LLP.jpgThe long (inter)national Marc Dreier nightmare is almost at an end. He’s been sentenced to 20 years for defrauding his clients and investors. The Wall Street Journal Law Blog reports:

Prosecutors had asked for a 145-year sentence, which harked back to the 150-year sentence U.S. District Judge Denny Chin readily handed down to Bernie Madoff, whose massive Ponzi scheme drained the bank accounts of countless investors. In both cases defense attorneys sought a fraction of that. Dreier’s attorney sought no more than 12-and-a-half years.

But Dreier drew U.S. District Judge Jed Rakoff, who has been highly critical of the length of sentences under the federal sentencing guidelines, particularly in white collar crime cases.

Bernie Madoff gets 150 years, but Dreier only gets 20? Justice may be blind, but she’s certainly not deaf.
Breaking: Marc Dreier Sentenced to 20 Years in Prison [WSJ Law Blog]
Earlier: Is Marc Dreier Almost As Bad as Bernie Madoff?

Is Marc Dreier Almost As Bad as Bernie Madoff?

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Marc Dreier small Mark Dreier Marc Drier Marc S Dreier LLP.jpgThe federal government seems to think so, based on the sentence they’re seeking. We’re kind of proud that one of our own, a lawyer, can rank up there with one of the greatest swindlers of all time.
And what does Marc Dreier think he deserves? No more than 12 1/2 years, according to his sentencing memo. More details, including excerpts from Dreier’s seemingly heartfelt letter to Judge Rakoff, over at the WSJ Law Blog.
U.S. Seeks 145-Year Sentence for Lawyer in Fraud Case [City Room]
Sentencing Looming, Dreier Asks For No More than 12 1/2 Years [WSJ Law Blog]

Breaking: Madoff Sentenced to 150 Years

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Bernie Madoff Bernard Madoff.jpgBernie Madoff has been sentenced to 150 years.
Judge Denny Chin said that the sentence was necessary to deter other people from entering into these kinds of schemes
The Judge apparently said that he was struck that there was no letter written in support of Bernie Madoff. On the other hand, the judge received 141 pages of letters from Madoff victims.
Madoff allegedly said:

They have accused me and my wife of not being sympathetic. She cries every night, I am also tormented.

Umm … crying doesn’t make you sympathetic. I think instead of turning on the waterworks, Madoff should try not stealing billions of dollars.
But Madoff did apparently say: “I am sorry.”
But the pitchfork rally doesn’t have to end here. Next up: what prison will Madoff be heading to? A “club-fed” facility, or someplace where Madoff might expect “more bareback.”
For extensive and ongoing coverage of L’Affaire Madoff, surf over to our sister site, Dealbreaker.

Morning Docket 3.24.09

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small cockpit.jpg* United Airlines settled a suit filed by a former pilot, who resigned after repeatedly finding porn in hidden places in her cockpit, including underneath a cap on a safety device called a “stick shaker” (no pun intended). Click to see United’s ridiculous effort to dismiss. [The Seattle Times]

* Attorney General Andrew Cuomo convinced 9 out of the top 10 bonus recipients at AIG to return their bonuses. Who is number 10? [The New York Times]

* Barney Frank called Antonin Scalia a “homophobe.” [The Associated Press]

* It turns out that Madoff has more than $1 billion worth of assets and the french authorities plan to seize his chateau in Cap d’Antibe, France, so maybe his victims can get a time share? No? [The Associated Press]

* A court battle between billionaire Wilbur Ross and hedge fund manager Bruce Rose may be the key to understanding the housing crisis. [Bloomberg]

* A sex-discrimination suit against Wal-Mart reaches the 9th Circuit Court of Appeals today. 200 female employees say women in comparable jobs don’t get paid as much as men. [The Huffington Post]

* Preservationists think a landmark case in Chicago is cause for alarm. [The New York Times]

Morning Docket 3.19.2009

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fortune cookie.jpg* Take a look at this legal analysis of the AIG bonus fiasco [The Hartford Courant]

* A new report from the Project for Attorney Retention (sounds like something we can all get behind) shows that it makes better business sense to have attorneys work reduced hours rather than laying them off. [The American Lawyer]

* More drama in the never-ending Minnesota Senate race: Al Franken says Norm Coleman should pay for the costs of the trial if he loses. [MSNBC]

* California’s 1996 ban of affirmative action in education, public hiring, or contracting is being closely considered by the courts. [National Law Journal]

* In spite of the recent blood bath at lawfirms–law school applications are still up. [The Wall Street Journal]

* China fell short of international anti-trust standards, rejecting Coca-Cola’s $2.4 billion bid for Huiguan Juice [Reuters]

* Enough Madoff already. Madoff’s accountant was charged with fraud and surrendered. [abcnews.com]