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Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Sunday, December 13, 2009

Italian Prime Minister Silvio Berlusconi is in San Raffaele Hospital overnight in Milan following an assault during an autograph session at the end of a rally.

The 73 year-old media mogul received a punch in the face from an assailant who police named as 42 year-old Massimo Tartaglia, a local man who has been undergoing mental health treatment for ten years. Tartaglia was holding a replica of Milan’s famous Domo Cathedral as he struck the premier; the composition of the replica is unknown, but eyewitnesses suggest it may have been made from marble, iron or another heavy material.

The assailant is currently in custody at a police station somewhere in Milan; police have confirmed he has no prior criminal record.

The attack on Berlusconi left him requiring treatment for damage to his mouth, a broken nose, cuts to his face and, according to reports from BBC News, at least two broken teeth. He has undergone a precautionary CT Scan. This is not the only attack Berlusconi has received; several years ago a man hit him with a tripod, leaving him with a cut to his forehead.

Tuesday, August 6, 2013

This past Sunday, Illinois Governor Pat Quinn signed into law a bill known as “Rocky’s Law” that requires Illinois high schools, through the local school district, to buy catastrophic injury insurance up to US$3 million or medical costs for up to five years, whichever one comes first, that covers student athletes. The insurance must cover student athletes while they are competing.

The legislation was named after Rasul “Rocky” Clark. In 2000, the Eisenhower High School football player became paralyzed from the waist down as a result of a tackle during a game. His school based health insurance covered the costs of his medical treatment. A legislator sponsoring the bill noted that the need for this type of insurance is rare. Clark’s mother attended the legislation signing. Her son died last year.

Before parents can claim money from school insurance, they first must pay out US$50,000. Schools have until January 1, 2014 to comply with the law. Schools cannot charge students more than US$5 to defray the cost of insurance. If a school district already requires student to be covered through private health insurance, they are exempted from this law.

Thursday, March 31, 2005

Success may be too much of a good thing for the future of storied BBC series Doctor Who. After the unexpected popularity of last Saturday’s return of the series to BBC airwaves, the star of the show is calling it quits from fears of typecasting.

According to a report from the BBC, actor Christopher Eccleston, who injected a edgier and sexier image onto the title character plans to leave the series once his 13-episode commitment is over later this year. Eccleston told reporters that his last appearance as The Doctor will be for a December Christmas special.

The show, which debuted March 26 after a 16-year hiatus, was the highest-rated television show in the UK that night. With an estimated viewership of about 10.5 million at its peak, more than 44 percent of all television households in the country tuned in to see the new Doctor. “The audience’s response for the new Doctor Who has been incredible and I am really proud to be part of it and I hope viewers continue to enjoy the series,” Eccleston said in a BBC release.

But that popularity was a double-edged sword for Eccleston. With roughly half the population seeing him as Doctor Who, he feared that once typecast as a science fiction Time Lord, audiences may not accept him in other roles. At one year, Eccleston will be the shortest-lived Doctor after Paul McGann who starred in the 1996 telemovie.

But the television network airing the show wants more of the crowd pleaser. The BBC has committed to producing a second 13-episode run of the reinvigorated series and says it is in talks with actor David Tennant to take on the role. Tennant is a star of the BBC period drama, Casanova.

In the announcement of the renewal of Doctor Who, the BBC did say it re-signed series co-star Billie Piper, who agreed to reprise the role of the Doctor’s sidekick for series two.

Friday, March 9, 2007

On Thursday March 8, 2007 the government of the Southern Greek part of Cyprus used heavy machinery to allow its military to tear down the five-meter high concrete wall on the Green Line that divides the island.

The wall has stood in the Cyprus capital of Nicosia for more than 40 years. It has been a constant reminder of the political situation of the Mediterranean island (given independence from Britain in 1960) that has suffered divisions since communal violence in 1963 that was only prevented by establishing a United Nations Peacekeeping Force there in 1964. These divisions only deepened when Cyprus was invaded by Turkey’s military in mid-July 1974 after right-wing Greek Cypriots (backed by the military junta ruling Greece at the time) attempted a coup with the intent of joining the island to Greece. The result was a split between the internationally recognized Greek Cypriot government in the south and the Turkish Cypriot north (only recognized by Turkey). The division at Nicosia has become a curiosity to tourists who look over it to see the buffer zone between the two factions (a no man’s land with abandoned homes and businesses where no civilians are allowed). The destruction of the wall also brought out curious Cypriots.

Much international pressure had been brought to bear on both sides, and thawing of the relationship between the opposing Cypriots began in 2003 when the Turkish side eased restrictions on travel. Still in 2004 before joining the E.U., Greek Cypriots rejected the UN reunification plan that called for a federation of two states. Then in December 2005 when the Turkish Cypriots created a footbridge for Turkey’s soldiers on the other side, the action drew protests from the Greek Cypriots voicing their security concerns. In January 2007 the Turkish Cypriots began dismantling the footbridge as a gesture of good faith.

At first both Cypriot governments expressed hope of reunification when asked about the demolition. Tassos Papadopoulos, the president in the Greek south stated “Tonight we have demolished the checkpoint on our side.” He went on to call for the Turkish Cypriots to act, saying civilians will not be able to cross “if the troops are not withdrawn”. Rasit Pertev, chief adviser to Mehmet Ali Talat, the leader of Turkish Cyprus said: “This is extremely symbolic… The dynamism created by this move will lead to the opening of the crossing.” Still when the government of Turkey dismissed the move as merely a result of international pressure that did not signify anything, and refused to dismiss its troops in the area (it maintains 40,000 soldiers on the island), sheets of aluminum were put up as a barricade on the Greek Cypriot side early on the morning of March 9, 2007.