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Oct
01

Madoff’s Money Ended Up in Israel, Off-Shore Banks

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Political Life Imitates Art

 

October 1-2, 2013 — Madoff’s money ended up in Israel, off-shore banks, and Democratic coffers

 WMR has learned from the executor of the estate of a woman defrauded by jailed New York securities dealer Bernard Madoff that much of Madoff’s money never disappeared as allaged by some but was invested in businesses in Israel, transferred to off-shore bank accounts, and pumped in small amounts to the political campaigns of Democratic women candidates, particularly U.S. Senate candidates, endorsed by the group EMILY’s List.

Madoff pleaded guilty to a long list of federal charges in 2009 and he was sentenced to 150 years in prison.

By providing Senate candidate with laundered cash, Madoff and his associates could ensure that legislation, such as the 1999 repeal of the Glass-Steagall Act of 1933, passed the Senate. Glass-Steagall provided strict controls over banks’ activities in the securities industry and established firewalls between banks and securities firms. Recipients of Madoff campaign cash were also assured that U.S. judges favorable to Madoff’s interests were appointed to the bench in the Second Circuit in New York, the court that has primary jurisdiction over Wall Street activities. Madoff money also ended up in the coffers of Republican New York Senator Alfonse d’Amato, who helped steer prospective federal judges favorable to Madoff and his cronies on to federal benches in New York. D’Amato’s defeat by Democrat Chuck Schumer in 1998 was an even better opportunity for Madoff to influence the selection of federal judges and ensure the repeal of Glass-Steagall. Madoff and his associates also ensured that their friends were appointed as surrogate court judges. The judges appointed as guardian ad litem certain attorneys who would then direct the wealth of elderly incapacitated millionaires into Madoff’s investment schemes. Judges also made favorable rulings that saw intestate funds directed to Madoff-connected attorneys.

The coziness between Madoff and some federal judges was reported by WMR on January 12, 2009: “The U.S. District court for the Southern District of New York seems intent on keeping ex-NASDAQ chairman and $50 billion Ponzi scheme swindler Bernard Madoff confined to his Upper East Side Manhattan luxury home and not in a federal lock-up. Two judges in the New York federal circuit, Theodore Katz and Ronald Ellis, have ruled that Madoff should stay in his town house and out of prison.

Attorney General Michael Mukasey, whose son, Marc Mukasey of the law firm Bracewell & Giuliani, represents Frank DiPascali, one of the Madoff cronies. Michael Mukasey once served on the federal bench with Katz and Ellis in New York. Katz was appointed by George H. W. Bush while Ellis, an African American, was appointed by Clinton.”

WMR also reported that reported: “Madoff is suspected of transferring much of his ill-gotten gain to Israeli banks, including one, Bank Leumi, that Madoff associate J. Ezra Merkin bought from the Israeli government when Ariel Sharon was Prime Minister and current Prime Minister Ehud Olmert was Finance Minister.”

On September 9, 2009, WMR reported: “Madoff’s close financial colleague, J. Ezra Merkin, has close ties to the IDB [Israel Discount Bank]. His father, Hermann, was a director of the bank in New York. Ezra Merkin, in addition to serving as chairman of GMAC (which received $ 6 billion in federal TARP bailout money), operated feeder contrivances for Madoff, including Ariel Fund in the Cayman Islands, Gabriel Capital LP, Ascot Partners, and Gotham Capital. In 2006, Merkin traveled to Jerusalem to announce that his and Stephen Feinberg’s Cerberus-Gabriel hedge fund was buying the Israeli government’s Bank Leumi for $500 million. At the ceremony was Israeli Prime Minister Ariel Sharon and his Finance Minister, Ehud Olmert, the latter recently indicted for fraud involving pay-offs from New York businessman Morris Talansky. Those investors who were defrauded by [Texas investment banker Allen] Stanford and Madoff are looking at entities that may have been purchased with funds skimmed from their investments, including Bank Leumi.”

More recent information received by WMR from lawyers representing defrauded Madoff clients points to Israeli condominiums, co-operatives, and pharmacies being the ultimate recipients of investment money from Madoff’s coffers.

The law firm that helped steer Madoff funds into off-shore accounts, according to sour sources, was the New York white shoe law firm of Hughes, Hubbard & Reed (HH&R), which once counted former U.S. Supreme Court Chief Justice Charles Evans Hughes among its partners. Hughes’ son, Charles Evans Hughes, Jr., also a partner in the law firm, became Solicitor General of the United States. Ironically, HH&R was retained by the U.S. Department of the Treasury in 2008 to assist in the financial bailout of Wall Street.

Madoff’s contributions to EMILY’s List candidates were kept to the minimum $2400 single contributions but were made by a number of Madoff family members and business associates. Some fourteen women senators owe their Senate seats, in part, to Madoff’s largesse and their voting records supported relaxation of regulatory controls over Wall Street. Recipients, all Democrats, include California’s Dianne Feinstein and Barbara Boxer, Louisiana’s Mary Landrieu, Maryland;s Barbard Mikulski, Minnesota’s Amy Klobuchar, Michigan’s Debbie Stabenow, Missouri’s Claire McCaskill, New Hampshire’s Jeanne Shaheen, New York’s Kirsten Gillibrand, North Carolina’s Kay Hagen, and Washington’s Patty Murray and Maria Cantwell. Other major recipients of Madoff cash included former senators Hillary Clinton of New York, Carol Mosely-Braun of Illinois,  and Jean Carnahan of Missouri. In the 2008 Democratic presidential primary, EMILY’s List endorsed Clinton over Barack Obama, earning the group long-term political repercussions from the Obama administration.

WMR’s sources also report that one long-time associate of Madoff and his family was New York Mayor Michael Bloomberg. In fact, we are told, the list of Madoff victims has been purposely kept secret in order to protect the identities of Madoff’s feeder fund principals and business associates, many of whom became friendly with the now-disgraced securities dealer through their membership in Madoff’s Fifth Avenue Synagogue as well as another synagogue that counted a number of Foley Square judges among its members, the Bialystok Synagogue in the Lower East Side.

WMR has been told the recent arrest of William Rapfogel, the former head of the Metropolitan Council on Jewish Poverty, is an outgrowth of the Madoff scandal. Rapfogel is charged with stealing $5 million from the Jewish charity. Rapfogel’s wife, Judy, serves as chief of staff to New York Assembly Speaker Sheldon Silver and Rapfogel and Silver are good friends. Silver has ensured that Rapfogel’s charity has received millions of dollars in state outlays for public services. Bernard Madoff had a close connection to Rapfogel and Sheldon through his younger brother Peter Madoff, his firm’s compliance officer who is now serving a 10-year sentence for fraud. According to our sources, Peter Madoff, Sheldon Silver, and Rapfogel were all good friends through their association with the Bialystok Synagogue

Comments

  1. Marcia the Kabbalist says:

    Oh what a tangled web we weave……

  2. It’s never enough money, power, or influence for the Madoff’s of the world. If you’re in their way I guess you’re disposable.

  3. It’s never enough money….never enough power and influence.

  4. So we clearly have a world of governments (and banks) that are run like criminal gangs. I agree with what I Jesse Ventura said last night on Piers Morgan, Vote for anyone next election as long as they are not in the two current political parties, Vote Green, Vote Vegan, Vote Crazy Uncle Bob… but with the power in numbers, it’s long overdue that note of these systems that pretend to protect and manage our affairs are sane. Clearly we are running out of time environmentally, and if psychopathic millionaires keep playing these games, we are all toast. Thank you Roseanne for being a voice in the wilderness and gathering up all us strays who just want to save humanity and the planet.

  5. Greetings, I hope this will be of interest to Roseanne.

    Free and Equal Elections Foundation hosted the 2012 “3rd Party” Presidential debates that were moderated by Larry King and Thom Hartmann and viewed by an estimated 20 million people. I’ve left Free & Equal, but I have even bigger plans moving forward. I don’t believe that one organization should ever have control of the presidential debates, even the open ones.

    4 Point plan to give the 3rd Parties a media platform to fairly compete in 2016 and let alternative voices and ideas be heard.

    1 – Hosting the debates in LA and NYC. While I got lucky with Ora.tv helping to bring Larry King in to moderate the Chicago debate, I wasn’t so lucky in DC. While Thom Hartmann is well known, he’s not nearly as big as the names who were interested in moderating the 2nd debate had we been in LA or NYC. Larry King generated incredible amounts of press for that debate, and I plan on bringing in more names the entire country knows and cameras can’t help but follow to moderate the debates in 2016. (Both Jon Stewart and Phil Donahue were interested if we had been in NYC, as were Ricki Lake and Martin Sheen had we been in LA.)

    2 – Two tiers of sponsors. Our second tier sponsors will expand on the 57 media and organization sponsors F&E had for the 2012 debates. These sponsors paid nothing, but reported on the debates and helped spread word of them. The first tier sponsors will be the real game changer in 2016 – organizations and companies that will sponsor us financially, enabling us to then take that money to the networks to run promotional ads in addition to broadcasting our debates. RT America, The Real News Network, Al Jazeera, Free Speech TV, Ora.tv, Link TV and CSPAN all broadcast the 2012 debates, and I’m going to work hard to get at least one of the major networks to join that list in 2016. (As well as Ben Swann’s soon to launch EMP News Network)

    3 – In the summer of 2012 a handful of Gary Johnson supporters were able to get through to 2 companies and 1 organization (Phillips, BBH New York and the YWCA) that had been sponsors of the CPD’s debates and educate them about their debates being closed. I was late on the ball in trying to bring them on as sponsors of the debates in 2012, but I plan on really promoting this approach in 2016 to starve the CPD of their sponsorship dollars, and doing all we can to welcome these companies and orgs on as sponsors of the open debates. If we can get just one of these companies to sponsor them, it will create an opportunity for a national news story.

    4 – At least 10 debates. We’ll start the 2016 debates late spring/early summer, and space them out so that the last one takes place right before the CPD’s debates start. Just 2 debates close to election day is too little too late. Last year viewers could vote online for their favorites, and I plan on expanding that to voting via text message, with one candidate going home after every debate until 2 are left at the last debate. The plan is to create demand for the candidates to be included in the CPD’s debates. If they don’t allow them to their debate, the American people will become very aware of the fraud, and we’ll publicly invite the D/R candidates to our platform while we continue hosting debates with our two remaining candidates on the same nights the CPD’s debates are held to include the VP’s. We’ll ignore them just as they’ve ignored us. We also plan for reality TV shows that showcase each of the candidates before the first debate airs.

    The media project I’m helping with now – http://benswann.com/ – and the work I do with a reality TV show producer, are with an eye on creating relationships with people in other organizations and media outlets that will help with the 2016 plan.

    I am currently looking for organizations that would be interested in forming a coalition to help make these debates happen, and if you know of anyone with an organization who might consider joining with – http://ivn.us/- http://www.saveamericafoundation.comhttp://www.freetalklive.com/http://www.bluerepublican.org/ – the organizations that are already aboard, feel very free to pass this along! I really think we can shake things up!

    In Liberty, Zak Carter
    206-551-8704

  6. Rhonda radcliffe says:

    He and his cronies are motherfuckers and to do it to us – Jews no less- rotting in hell is not enough suffering —

  7. I love your stories, so true and so interesting.

  8. AllI can say is I’m not surprised about any of this and it’s all very interesting. It is a depressingly corrupt world we live in. Thank you for this very informative story.

  9. Hal J. Ridley, Jr. says:

    Robotic Construction Model & the Personal Robotic Revolution

    Invention Innovation and Entrepreneurial Acumen are all we have to

    pull up from this descending spiral, we had better improvise some

    wings quickly. We need a completely new way to live. We change the

    way we live by changing the way we build. The Robotic Construction

    Model is the next step to that new way. The RC Model is a new way to

    build a new type of building using a series of construction robots I have

    invented. I have my first US Patent, “The Multi-Function Construction Aid”

    http://www.uspto.gov/ # 6640928. I have put up a little website to explain a little

    of what I am trying to do without giving up enabling information.

    http://www.roboticconstruction.com/ To cover the entire RC Model will take 14

    more patents. The second generation of this concept is “The ARC Model”

    Autonomous Robotic Construction which are buildings designed to build

    themselves almost. With the RC Model we will be able to build much

    stronger, faster, safer, and cheaper. We will be able to construct buildings

    and dwellings that will not burn down, blow down, shake down or wash

    away with very little exception and we will be able to build energy self-

    sufficient structures that make and filter their own water and treat their

    own waste all off the grid. The RC Model is a Matrix Idea as it will bring

    along a host of other good ideas with it. Everything that we require to

    create the dramatic changes we desperately need to make is here or very

    near right now, except for the vision to see it. It’s only when the barbarians

    are at the gate, that the fear of the external threat is greater than the fear of

    overthrowing the internal order. That is when dramatic and radical change

    can and will occur, one way or the other. The RC Model will bring on the

    Personal Robotic Revolution which will be an economic revolution and maybe

    create an unrecognizable post-new world order. When corporations use robotics

    we lose our jobs, when we use robotics we lose corporations. The Personal

    Robotic Revolution will in very short order replace the dying and rotting economic

    system called Corporate Capitalism. This new economic model will take from the

    old world order and mix it with Information and Robotic Technologies to recreate

    a Hybrid Economy of smaller near self-sufficient economies and local entities that

    trade for only raw materials and produce all goods and services very locally within

    the village or small town or neighborhood. Very much along the lines of the Native

    American or Amish models but with high technologies added. There is no way to

    compete with a Closed Loop Local Techno-Agrarian Economy except by Genocide

    which is the tried and true method used by our own Government against all comers

    including our own selves for the last three centuries. The primary reason for the past

    and the present is so there will be a future. In human terms the delusion, with vision,

    effort and luck, that does someday happen to occur is called the future. To have

    the best chance of succeeding in a very difficult venture you should never expect

    to succeed. By keeping very low expectations, then you are never disappointed

    and you are able to continue on day after day and year after year and decade

    after decade. When people ignore me or reject me or tell me no, it never stops

    me it only stops them. Inventor and Futurist Buckminster Fuller believed “If you

    want to change things don’t confront reality head on, create a new model that makes

    the old model obsolete” and I’ve come to think that one of the most impossible things

    is convincing everyday people what is possible. New ideas are threatening because

    they replace old ideas that have very powerful vested interests but even so they can’t

    stop us unless we quit. Take 30 minutes and find out if I know what I’m talking about

    and also pass around my info to anyone who might be interested in the future.

    thankz
    MS Roseanne