CLICK HERE LARGE PRINT EDITION: ALL IN THE FAMILY VI « Culture of Life News 2
Every time I think we are done with the Madoff Affairs, more news just comes pouring out. So I am putting off, talking about the Clinton ‘Charity’ scam but the Madoff mess is very much tied into the Clinton corruption system. So I will write about that tomorrow. The naked mess created by one of the biggest gnomes on Wall Street has caused a lot of fear and even got Forbes to suggest we need revolutionary changes…HAHAHA. But NOT the Wall Street Journal! No, they want to pretend, nothing is wrong, really, honestly.
Part of the blame for this failure fairly can be attributed to the SEC–both for providing too small a staff and for that staff’s decision, apparently on its own, to permit internal audits to substitute for the Commission’s requirement of external audits.
But more of this tragedy can be attributed to a general belief that the world’s leading investment banks did not need regulatory rules to assess the risk of novel forms of trading such as credit default swaps, and that those same institutions could tolerate net capital requirements that were much lower than otherwise required.
What we have learned, quite simply, from the last few months is that we now need an SEC once again able to wholly fulfill its historic mandate.
First, this means that the current system of financial regulation–with loopholes for financial holding companies, credit default swaps and hedge funds–must be transformed into one in which all relevant types of financial instruments and actors are subject to similar systems of full and complete disclosure.
Second, we need to make a fundamental distinction between the need for the Department of Treasury or the Federal Reserve, which address issues of systemic liquidity, and the need for a specialized agency, such as the SEC, which addresses the now-urgent needs of millions of American investors.
But it turns out, the Madoff crimes predated the undoing of all the post-1929 collapse regulations.
Um, the SEC must be investigated. Mary Schapiro should be thoroughly investigated and then hopefully, sent to jail like all the others in this little drama. Cox gets put in the Big Box, too. Now, how on earth can the SEC staff make decisions on their own about not auditing someone? Eh? Who was bribed? Who slept with whom? Who made under the table deals? Who went to the same Synagogues?
Since 99% of this mess was confined strictly to the Jewish sectors of the financial/government/regulatory realm, we have to have snoopy outsiders investigate this interlocking community and how it interfaces with regulators! True, the con artists, gnomes and pirates all share a philosophical ideology that no one should have any rules, regulations or laws. They want Dodge City Wild, Wild Invest.
The many ‘modern’ financial instruments that a host of irresponsible geniuses created were all pitched towards doing one thing: creating money out of thin air coupled with protecting the fees and follies of the creators so they could get very, very rich while doing absolutely nothing good. So, using all of these ‘tools’, the merry gnome community ended up dumping amazing amounts of unsustainable debts on top of everything in sight.
The last paragraph of this Forbes story is particularly amusing to me: so, Forbes thinks we should distinguish between the Fed and the Treasury? HAHAHA. The Treasury has been hijacked by criminals and we see how great they have been: the Treasury is nothing but trillions of dollars in debts. And a small pile of gold at Fort Knox. I suspect, much of which is now ‘swapped’ so the US people don’t own it at all.
This ‘liquidity’ is all about debts. And the guys who created the complete collapse of not only our entire banking system but our entire government, our entire economy and perhaps, our very nation, itself—they used the Federal Reserve to do this to us. Ergo: the Fed, which is a PRIVATE corporation, should be NATIONALIZED. And then Congress should go back to what they were supposed to do: regulate the currency and make banking rules and laws. Not the Federal Reserve.
They epitomize the utter foolishness of letting bankers regulate themselves. Ever since the Fed took over our banking system, inflation took off. And it was supposed to prevent bubbles and crashes. Yet, we have these like clockwork. And deep in the center of these bubbles is always the Federal Reserve handing out excessive loans. Right off the bat, they lent epic amounts to Europe so the empires there could ravage each other.
(Bloomberg) — U.S. regulators, trying to unravel the breadth of Bernard Madoff’s alleged $50 billion fraud, have found evidence of misconduct stretching back to at least the 1970s, two people familiar with the inquiry said.
Madoff’s investment advisory business, where he allegedly operated the biggest Ponzi scheme in history, is now estimated to have had more than 4,000 customers, the people said, declining to be identified because the inquiry isn’t public. An advisory unit Madoff registered with the Securities and Exchange Commission claimed in a January filing to have no more than 25 clients. People familiar with the probe said Dec. 14 he also ran a secret unregistered business….
Madoff’s attorney, Ira “Ike” Sorkin of Dickstein Shapiro in New York, wasn’t available to comment. In an interview yesterday, Sorkin said Madoff’s company is “cooperating fully with the government.”
Do we seriously think that someone named ‘Wilson’ or ‘Martinez’ could have walked into the Exchange and open SECRET accounts and then run a Ponzi scheme? Of course not easily! This requires a social stage where such secret, unregistered and unregulated stuff is protected by others. It is hard to make deals with people if you are not part of the social scene. And once a group gets a grip on things, they shun outsiders and protect each other.
This must be investigated. Someone has to look into the social relationships as well as sexual relations of the people at the heart of our financial systems. The Madoff affair certainly has torn aside the veil of secrecy that has cloaked Wall Street. But it must go much further: the Jewish community must take responsibility for what has happened there. Just like, they must face the serious charges that they have diverted much of our foreign aid to Israeli Jews even while our budget is collapsing. Just like the tax evasions that are eating up our government finances have to be examined in light of this group effort to short-change the US while enriching Jews in Israel.
The importance of this business is obvious: our own government is cutting finances at home or running up trillions of dollars in future obligations we Americans must pay, eventually. The inability of Congress to even discuss fixing our budget problems or taxing the wealthy Wall Street community is very directly tied into the interlocked families which control our national economic systems. Eventually, enraged Americans who are not Jewish will attack the entire Jewish community.
So the time to clean house is here and now. Instead of wondering why the SEC mysteriously lets a top Jewish financier run amok, we should relentlessly discover the actual process whereby this happened. This means, the people who enabled this to happen have to be hunted down and examined. Why did they punt for Madoff in the first place?
In its 1992 lawsuit, the SEC claimed accountants Frank Avellino and Michael Bienes began raising money in 1962 and placing it with Madoff while promising investors returns of 13.5 percent to 20 percent, according to court documents obtained by Bloomberg. As of October 1992, their firm, Avellino & Bienes, had issued $441 million in unregistered notes to 3,200 people and entities, court papers say. They invested solely with Madoff, who opened his business in 1960.
Avellino and Bienes, who were represented by Sorkin, agreed in November 1992 to shut down their business and reimburse clients. Lee Richards, the court-appointed trustee over Avellino & Bienes, hired auditors Price Waterhouse to scrutinize the books of the firm, which operated as an unregistered investment company, according to the SEC.
Price Waterhouse said Avellino & Bienes kept few records and asked Madoff to provide copies of account statements issued to the firm, which he did, court records show. Richards, who was named receiver for Madoff’s foreign units on Dec. 12, didn’t investigate Madoff while overseeing Avellino & Bienes, the records show.
So, a previous ‘funnel’ who existed only to take money from people and move it into Madoff’s criminal operation were investigated and forced to return these funds! Yet, in the news, we hear of many such similar organizations, all of whom, it appears, were run by Jewish con men, all of these are now collapsing, going bankrupt or being shut down by the authorities. They existed only to fleece people via fees while simply funneling money to Madoff.
Yet, 16 years ago, this didn’t trigger an intense investigation of Madoff. He was certainly very protected.
This article was published in the Dec. 16, 1992, edition of The Wall
Here’s a tantalizing Wall Street mystery:
The Securities and Exchange Commission recently cracked down on one of
the largest-ever sales of unregistered securities. Investors had
poured $440 million into investment pools raised by two Florida
accountants, who for more than a decade took in money without telling
the SEC or making required financial disclosures to investors.
Who was the broker with the Midas touch? The SEC, which last month
went to court to shut down the operation, won’t say. Neither will the
lawyer for the two accountants, Frank J. Avellino and Michael S.
Bienes of Fort Lauderdale.
But the mystery broker turns out to be none other than Bernard L.
Madoff — a highly successful and controversial figure on Wall Street,
but until now not known as an ace money manager.
Mr. Madoff is one of the masters of the off-exchange “third market”
and the bane of the New York Stock Exchange. He has built a highly
profitable securities firm, Bernard L. Madoff Investment Securities,
which siphons a huge volume of stock trades away from the Big Board.
The $740 million average daily volume of trades executed
electronically by the Madoff firm off the exchange equals 9% of the
New York exchange’s.
Mr. Madoff’s firm can execute trades so quickly and cheaply that it
actually pays other brokerage firms a penny a share to execute their
customers’ orders, profiting from the spread between bid and asked
prices that most stocks trade for.
In an interview, the 54-year-old Mr. Madoff says he didn’t know the
money he was managing had been raised illegally. And he insists the
returns were really nothing special, given that the Standard & Poor’s
500-stock index generated an average annual return of 16.3% between
November 1982 and November 1992. “I would be surprised if anybody
thought that matching the S&P over 10 years was anything outstanding,”
In fact, most investors would have been delighted to be promised such
returns in advance, as the accountants’ investors were. That’s
especially true since the majority of money managers actually trailed
the S&P 500 during the 1980s.
The exact same lawyer, Ira Sorkin, represented the two criminals in the above story back in 1992. He is representing the crew who are criminals today in the Madoff business.
Mr. Madoff said his investment strategy changed around 1982, when his
firm began using a greater variety of strategies tied to the stock
market, including the use of stock-index futures and “market-neutral”
arbitrage, which can involve buying and selling different stocks in an
In yesterday’s story, I explained how Mr. Madoff pretended he had this miraculous bank of computers that magically beat human market experts. But in 1992, he had other explanations for his miraculous profits. He always had some sort of incredible system at work. Which is always very vague.
Perhaps the biggest question is how the investment pools could promise
to pay high interest rates on a steady annual basis, even though
annual returns on stocks fluctuate drastically. In 1984 and 1991, for
example, the stock market delivered a negative return, even after
counting dividends. Yet Avellino & Bienes — and Mr. Madoff —
maintained their double-digit returns.
The answer could be that Mr. Madoff’s use of futures and options
helped cushion the returns against the market’s ups and downs. Mr.
Madoff says he made up for the cost of the hedges — which could have
caused him to trail the stock market’s returns — with stock-picking
and market timing.
This story from 1992 makes it crystal clear that investigators should have gone after Madoff with greatest severity. But they did not. This is because he had protection, Mafia-style protection: buying politicians and corrupting the system so it would look the other way.
As the investment pools swelled, two other accountants, Steven
Mendelow of New York City and Edward Glantz of Lake Worth, Fla.,
started their own pool, Telfran Ltd., to invest in Avellino & Bienes
notes. Telfran by itself sold $89.6 million in unregistered notes, a
separate SEC civil lawsuit charges. The two men, also represented by
Mr. Sorkin, declined to comment. The SEC said Telfran made money by
investing in Avellino & Bienes notes paying 15% to 19% annually, while
paying Telfran investors lower rates.
Here is yet another warning sign that this was an elaborate pyramid scheme! More and more guys who were ‘in the know’ and who socialized with Madoff would buy each other’s shares! So each group would launch a new ‘business’ which had only one function: to buy an earlier level of the pyramid. So the third parties to join bought the shares of the previous parties who then fed the money to Madoff after taking their own cut. This can go on forever as we see with the long, long list of hedge funds and organizations that had only one function: to buy something that was a Madoff fund.
ORDER.OF PElUfARENT INJUNCTION AND CIVIL PENALTIES ENTERED AGAINST TELFRAIIASSOCIATES LTD. ,TELFRAN ASSOCIATES COllP., STEVEN KENDELOV AND EDVAllD GLANTZ
The Commission announced that the Honorable John E. Sprizzo, District Judge for theSouthern District of New York, permanently enjoined Telfran Associates Ltd. (TelfranLtd.). Telfran Associates Corp. (Telfran Corp.), Steven Mendelow (Mendelow) and EdwardGlantz (Glantz), by consent, from further violations of Sections 5(a) and 5(c) of theSecurities Act of 1933 and Section 7 of the Investment Company Act of 1940.
TelfranLtd. agreed to pay a civil penalty of $250,000, and Mendelow and Glantz each agreedto pay civil penalties of $50,000.The Commission’Scomplaint alleged that from 1989 through November 1992, thedefendants sold unregistered securities to the public and operated as an unregistered investment company. The complaint further alleged that the defendants sold investorsnotes which paid an interest rate of approximately 15\.
The complaint alleged thatthe defendants used investors’ monies to purchase notes from Avellino & Bienes, who invested the money with a broker-dealer.The complaint alleged that as of November16, 1992. Telfran Ltd. had more than 800 investors and had raised in excess of $88million through the sale of its unregistered securities.[SEC v. Telfran AssociatesLtd., Telfran Associates Corp., Steven Mendelov and Edward Glantz, 92 Civ. 8564, JES,SDNY] (La-1388l)
Madoff is the ‘broker-dealer’ mentioned in the last paragraph here. Note how the third level of this pyramid scheme raised over $88 million dollars while doing virtually nothing. 800 people were drawn into this scam. Madoff certainly was one slippery fish swimming in endless pools of money, wasn’t he?
Here is an example of today’s school of fellow fishes now going belly up: Ezra Merkin’s Gabriel Capital to Close After Losses on Madoff Investments
Like he fellow Jewish buddy, Madoff, Merkin is in the middle of a spiderweb of power. Note how he is also part of the GMAC mess. General Motors had to sell off that business and obviously, it fell into the hands of con men.
Feinberg majored in politics, producing a senior thesis arguing that drugs and prostitution should be legalized. For the paper, he not only delved into theories about the appropriate role of government but also spent a summer interviewing cops, hookers, and pimps in New York City. Feinberg took the position to impress a professor who he perceived as liberal after receiving a bad grade arguing the opposite view in a paper the previous year, says a person close to him. Today Feinberg contributes to Republican causes. He and his wife Gisela sent $114,000 in the 2003-2004 election cycle to committees working to elect Republicans to Congress.
His first finance job was as a novice trader at Drexel Burnham. But he soon moved on to Gruntal & Co., where he worked on the same floor as Steven A. Cohen, now a hedge-fund star who runs SAC Capital Advisors LLC. By 1992, when he was 32, Feinberg wanted to strike out on his own and teamed with co-founder Richter, who ran his own brokerage firm.
They named their firm Cerberus, for the ferocious three-headed dog that guards the gates of Hades in Greek mythology. Feinberg liked the idea that one of the dog’s heads was always on watch, just as his firm would guard its clients’ investments around the clock, says J. Ezra Merkin, managing partner of hedge-fund firm Gabriel Capital Group. Merkin — whose clients included university endowments and wealthy New York families — became Feinberg’s partner in a number of funds and deals. “I thought he would be able to move from passively investing in securities to building a business and actively managing companies,” says Merkin.
Cerberus was launched by Jewish Mafia guys who, according to this old article that basically admires and praises these con men, Feinberg of Cerberus was actively involved in ‘deals’ with Gabriel Capital Group’s owner and con artist, Mr. Merkin! So is Cerberus going to be thoroughly investigated? The talk in Congress for bailing out Chrysler Motors is all about Cerberus getting some profits out of that deal. I say, they should get nothing.
Merkin, the scion of a philanthropic family known for its support of Modern Orthodox causes, resigned as a YU trustee and as chairman of its investment committee on Friday following Madoff’s arrest a day earlier.
According to sources close to the case, Merkin was apparently duped by Madoff. Still, many believe that Merkin might have misled his investors, and YU officials were discussing whether to press charges against Merkin, who had placed the money with Madoff without the university board’s knowledge…..
Some veteran members said that at the time Merkin was not only respected and trusted, but also seen as “the Golden Boy controlling the Golden Goose.”…
According to a board member cited by the Yeshiva University newspaper, several trustees and the university’s President Richard Joel had “long been upset with Merkin’s management of the endowment, citing factors such as disappointing returns as well as a secretive, overbearing leadership style.”
In particular, YU officials were “troubled by Merkin’s tactic of directing substantial amounts of YU’s endowment – in the range of $400 m. to $700 m. – to a fund that he himself managed.”
This article from Israel is ridiculous. Merkin was NOT conned by Madoff. He knew he was scamming people because the sole reason his hedge fund existed was to funnel money into Madoff’s pyramid scheme. Note that Merkin, like all criminals, didn’t want anyone seeing his books, poking around in his deals or knowing anything. He was secretive. They all are! Ergo: he was operating a criminal con job.
Moreover, in the years leading up to his involvement with Ms. Madoff, Mr. Swanson aggressively pursued an enforcement action against a company whose board included his future father-in-law, Peter Madoff, and whose chief executive was one of Mr. Madoff’s closest friends.
Former colleagues in the regulatory world and professional adversaries described Mr. Swanson as a straight arrow, earnest by-the-book Midwesterner who worked long hours and received excellent job evaluations. Several said they always saw him act aggressively but fairly in his years at the commission and that they never saw any evidence of him favoring any company, including Madoff Securities.
“I remember him as a very hard-working, dedicated and smart guy,” said Joseph Lombard, a former market regulation counsel to Arthur Levitt Jr. when he was the S.E.C. chairman in the 1990s. “You have people at the agency, like anyplace, who are more or less committed to the enterprise. Eric was all in. He believed in the ability of regulation to make markets better. He was an advocate of aggressive action against people who had fallen short.”
This article seeks to protect someone who should have had a faint idea, what was going on. This ‘investigator’ didn’t know what his wife was doing? Boy, is he in for a world of hurt when she really decides to go off and screw around! She, of course, even when supposedly in a position of authority in her father’s scam business, claims to be stupid an innocent.
Ah, all these highly educated, sharp people who pride themselves on being on top of things, when caught, suddenly are the dumbest people on earth! Didn’t know a thing! Straight arrows who marry into Mafia families! HAHAHA. The Godfather is a good movie. A must-see.
Another clue as to why we must thoroughly investigate the gangsters and the regulators is the top paragraph: the guy Mr. Swanson investigated right before joining this branch of the Jewish Mafia was one of Madoff’s closest friends! Did the guy go to jail? Since I don’t know the name, I can’t look it up!
The Madoff tale is striking in part because it is like stealing from family. Yet frauds that prey on people who share bonds of religion or ethnicity, who travel in the same circles, are quite common. Two years ago the Securities and Exchange Commission issued a warning about “affinity fraud.” The SEC ticked off a series of examples of schemes that were directed at members of a community: Armenian-Americans, Baptist Church members, Jehovah’s Witnesses, African-American church groups, Korean-Americans. In each case, the perpetrator relied on the fact that being from the same community provided a reason to trust the sales pitch, to believe it was plausible that someone from the same background would give you a deal that, if offered by someone without such ties, would sound too good to be true….
The SEC’s failure to pursue complaints about Mr. Madoff over the past decade wasn’t the result of inadequate regulations but of disbelief that someone so well entrenched in the industry — a former Nasdaq chairman and SEC adviser — was capable of committing such a callous crime.
Although regulatory initiatives routinely are taken off the shelf and offered up as the solution to a newsworthy problem, the conduct Mr. Madoff is accused of was illegal long before Charles Ponzi made pyramid schemes synonymous with his name. With so many aspects of our financial system under scrutiny today, and so many people in the government who regulate and write the rules for that system set to change, it hardly makes sense to go looking for ways to prevent new Madoff-like schemes….
In retrospect, the current Madoff story is about someone who was as perfectly suited to swindling as Horowitz was to playing piano. The violation of trust at the heart of that story — of trust by those with the greatest reason to trust — cries out for sympathy. It illustrates the limits of law, not the need for more of it.
Mr. Cass is dean emeritus of Boston University School of Law, president of Cass & Associates, and chairman of the Center for the Rule of Law.
Ah, protecting the tribe! Good job, Mr. Cass! Why have any rules? After all, there will always be con men! And this IDIOT is a professor of LAW???? I looked up some stuff about this criminal lawyer. He worked on NAFTA. Gads. Ack.
For a lawyer to say, ‘Well, you know, people MURDER so why punish them? We can’t stop MURDERS by passing laws so why bother? You go and trust someone and then they shoot you dead! So what’s the big deal, buddy?’ Gads. I suppose, he hunts quail with Cheney. Blames victims for being shot in the face? How DARE this idiot claim, we shouldn’t prevent obvious frauds? Eh?
This is exactly what is wrong with many powerful Jews. Mr. Cass is in a position of responsibility, yet he counsels that we do nothing in the teeth of criminal frauds just because it was a Jew doing it! This story illustrates the limits of the present laws that allowed Jewish con men to operate with near-total impunity. And it can be fixed. But not by Mary Schapiro who, I bet, thinks exactly like this Jewish lawyer: ‘WHO GIVES A FUCK? WE WON’T FIX THIS…NAYAYAYAY.’ I think that Boston University should fire this creep.
He is impossibly rich, uniquely powerful and boasts a copper-bottomed CV that includes dozens of the most influential blockbusters of modern times. But even Steven Spielberg’s career is stalling in the apocalyptic face of the global credit crunch.
The legendary movie mogul, who recently “divorced” Paramount Pictures to turn his production firm, DreamWorks, into an independent company, finds himself in the unfamiliar position of struggling to raise enough money to get the ambitious new project off the ground.
Ironically, given his unrivalled reputation for producing some of the most lucrative films ever made, such as Jaws, ET, and the Indiana Jones series, Spielberg seems unable to raise $750m of the $1.2bn needed to underwrite DreamWorks’ slate of forthcoming movies. Without the cash, the firm will be unable to begin work on its proposed selection of films, which include a selection of the most eagerly awaited projects in Hollywood….
Although it seems unlikely that DreamWorks will collapse, Spielberg is expected to dramatically scale back his plans for the studio. Only one major project is currently under way, a $130m 3D version of Tintin. Unless the market improves, pundits say he will be forced to produce fewer, smaller movies. The problems come after a turbulent year for Spielberg, whose long-standing business partner David Geffen parted company from DreamWorks at the end of October. Mr Geffen, one of the film industry’s best deal-makers, had engineered the company’s separation from Paramount Pictures.
So, Spielberg is ‘impossibly rich’ but has to beg for money to make movies? What the hell is wrong with our world? Why do movies cost so much? Most of them are infantile with huge loads of special effects while the dialogue is barely above first grade level? Tintin is a lightly-drawn comix from Belgium which was cute in the 1950’s, I read these stories back then. But to make a monster-expensive movie about this is plain crazy. I hope it is never made.
Way too many rich people are not rich. They are all overextended and utterly reckless and making stupid things that are useless or just plain stupid. Then, when things fail, they say, ‘We were too stupid to know what we were doing.’ Stupid is as stupid does. Gads. Have they no pride?
Richard Dreyfuss, who played Vice-President Dick Cheney in the recent George Bush biopic W, is at the centre of a real-life drama after deciding to sue his father and uncle over a personal loan he claims was never repaid.
The Oscar-winning actor has filed a lawsuit seeking $4m (£2.6m) in repayments, interest fees and damages related to an $870,000 advance he gave his relatives in 1984 to help with a 13-storey office building they own in downtown Los Angeles. Mr Dreyfuss accuses his uncle, Gilbert, and father, Norman, of acting with “fraud” and “malice” in refusing to turn over accounting records for the building that would show whether he should have had income from the investment….
Though Mr Dreyfuss, 60, has in recent years stepped back from the limelight, appearing in only a handful of films and claiming to be in semi-retirement, he retains a status akin to royalty in Hollywood, and his decision to sue two close relatives, with all the publicity it will entail, will be devoured by the showbusiness media. Originally from a tight-knit Jewish family in Brooklyn, Mr Dreyfuss is thought to have become estranged from his father, a former restaurateur and attorney, after the death of his mother Geraldine from a stroke in 2000. His lawsuit was originally filed last August.
So, papa ripped off his famous son? HAHAHA. All in the family! And papa was a lawyer? Good grief. And the lawyer landlord can’t figure out the finances of a building? Good grief, again! Where do these dummies get their law degrees? HAHAHA. Good grief.
Now, here is a little story of a non-Jewish rip off artist just to show us that ANYONE can be a rip off artist, OK?
(Bloomberg) — Builders, florists and blacksmiths are counting their losses along with financiers and hedge-fund managers in the bankruptcy of theYellowstone Club, a private ski-and-golf enclave in the Montana Rockies.
The club, where Persian rugs line the ski lodge and a trail is named “Learjet Glades,” sought protection from creditors on Nov. 10, brought down by the founders’ divorce, profligate spending, and a real estate slump. Members like investment banker Robert Greenhill, founder of Greenhill & Co., want to know where their $250,000 deposits went. A local wastewater company wants its $5,472….
It remains open after getting court approval on Dec. 12 for an emergency $19.8 million loan from club member Sam Byrne, founder of CrossHarbor Capital Partners LLC, a private equity firm in Boston….
The trouble started well before the U.S. recession. Cyclist Greg LeMond, an early investor and homeowner, sued the club in 2006, saying the Blixseths borrowed $375 million from Zurich- based Credit Suisse Group and took $209 million for themselves as a dividend, jilting him and other investors.
Credit Suisse spokesman Duncan King said the bank arranged the loan to the club and is acting as an agent in the bankruptcy for holders of the debt.
The Blixseths used the money to buy boats, cars, and a 16- bedroom chateau in France for $28 million, LeMond alleged. The parties settled the suit earlier this year for $39.5 million, though Edra Blixseth missed a Nov. 15 deadline to pay the $13.5 million balance still owed, according to a filing by LeMond in Montana state court.
A lot of ‘rich’ people are really dead beats juggling loans. When the wonderful Aladdin’s lamp, the Japanese Carry Trade abruptly began to unwind last July, 2007, a lot of people with a lot of short-term debts ended up underwater. This is one such organization. Mr. Blixseth sold shares and then dumped debt on his enterprise. Sounds like a classic Cerberus tactic! HAHAHA. Well, he got caught when the liquidity that was hosing the planet, stopped.
His First Transaction: A Donkey Sale
Blixseth took Eichler’s counsel to heart. He decided to use his wits to make money. He felt he could become a successful entrepreneur, at 18, and nobody could stop him. Hollywood would have to wait.
He was amused saying: “I’ll never forget my first real transaction. I scoured the want ads for items on sale and saw one advertising three donkeys for $25 each.
“I thought three donkeys for $75 was cheap. So, I borrowed a pickup from my brother-in-law and drove out to see the guy. We closed a deal for $75. But, I agreed to buy the donkeys only if they could be loaded into my pickup. We pushed them as hard as we could. They would not budge…. I was determined…. They were stubborn…. We had a battle. Finally, we had to get a motor-driven winch to lift them off the ground, one at a time, and place them onto the truck. They were three very unhappy donkeys.
“I took them to my brother-in-law’s pasture to stay until I could resell them. I tripled the price to $75 each, ran an ad in the paper, and got a call the very next day. The buyer came over to see the donkeys. He loved them, and agreed to pay $225 under the condition they would load into his truck.
“I thought, ‘Oh, my God!’
“The buyer swung his truck near the donkeys. I gloomily walked behind the truck, steeled myself for a battle, lowered the truck’s tailgate, and got the surprise of my life—all three donkeys, easily and quickly, jumped right up and into the guy’s truck unassisted!”
My, my, Mr. Blixseth is so folky! HAHAHA. I have had many large mammals: horse, oxen, sheep. When I put sheep in my truck, I had to have a roof over their heads or they would jump out. On top of that, the maximum number of sheep in a large truck that was 8’x5′ was six. Donkeys are the same size as ponies. Ponies are not that small. They are much bigger than sheep.
Putting ONE donkey in the back of a truck is ridiculous since the sides of the truck are not very much higher than the donkey’s knees! They just hop out again. Secondly, it is IMPOSSIBLE to put in three. Just impossible. So, before this scam artist went bankrupt and is now in deep trouble, several years ago he was making up stories about donkeys.
Another thing: large mammals hate being transported. Getting any of these guys to go in and out of trailers [I NEVER ever heard of anyone transporting them in the back of a truck!] is tricky, nasty and often, dangerous. And you need a ramp, even for the sheep. They never ‘jump in’.
To offset a young whippersnapper from competing, lumber tycoons deliberately lost money on timber sales to bury him. It caused Blixseth to load up with a lot of high priced timber.
In 1981, when Blixseth was 31, interest rates soared to 22 percent, timber value dropped by 90 percent, and bonding companies seized assets. He went to the attorney of his bonding company and asked for five years to make it right.
“I’ll never forget the guy,” recalled Blixseth. “He said: ‘You know, I can pick a loser pretty well and I don’t think there’s any way you can make it happen.’
“They seized my assets, I lost everything, and had to go bankrupt.
This clown was a dead beat in the past. Just like Donald Trump. An astonishing number of the dead beats in trouble today are previous dead beats who got in trouble in the past! Why on earth would anyone trust someone like this guy? And the story here! He claims, the tycoons deliberately lost money so they would bury him? That is plain silly.
So the end of this story is, a bunch of high-flying executives got fleeced by this lying, bankrupt bastard. It is rather funny, actually. I bet Mr. Cass would sigh and say, ‘Buyer beware! Why have courts and laws protecting buyers if people will cheat them, anyway?’
Alaska state troopers have arrested the mother of Bristol Palin’s boyfriend on drug charges.
Sherry L. Johnston was arrested Thursday after troopers served asearch warrant on a Wasilla home. The 42-year-old Johnston has been charged with six felony drug counts.
And last of all: amoral stupidity is in all social and religious groups. I would suggest, some of the most pathetic losers are born again Christians. They seem to be the easiest people to swindle or con. Palin presented her community as the ‘real’ America that was wholesome and good. With her wretched family as a prime example of good Americans.
Wasilla sounds more like Twin Peaks. The Meth capital of Alaska. And this reminds me of that con woman, Palin: she is very skinny and talks nonstop. While her eyes dart all over the place. She nearly talks backwards. She reminds me of speed freaks.
They are all crazy! And they want to rule us. Or at least, cheat us. And in the process, are cheating each other, screwing up everything and driving not only themselves and their friends into bankruptcy but are driving our nation into bankruptcy! Arrest them all.
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