NJ Senator Lautenberg Scammed By Wall Street Pal

Honestly, I'm going to have to work overtime conjuring up any sympathy for Frank Lautenberg. One of the most detestable, partisan hacks in Washington is among those who've been affected by the burgeoning Bernard Madoff scam, which already dwarfs the Enron scandal in magnitude. Lautenberg won't even admit how much he was bilked for. C'mon, Frank, man up. It's all about transparency these days, isn't it?

The fallout from a stunning $50 billion swindle - allegedly engineered by Bernard Madoff - is turning into a global pandemic.

International banks, hedge funds and small-time investors from Japan to Switzerland emerged yesterday as potential victims in what's being called history's largest Ponzi scheme.

The international losses alone could be more than $8 billion.

Just in Geneva, banks reportedly may be out of $4 billion invested with Madoff.

Tokyo's Nomura Holdings, which reportedly recently began marketing Madoff's fund abroad, also is swept up in the financial wipeout.

And Bermuda's Kingate Management had invested part of its $2.8 billion fund with Madoff.

"It's overwhelming. We have been interviewing people from as far away as Argentina, London - of course, Palm Beach and the New York area - up and down the Eastern seaboard, and out West," said attorney Mark Mulholland, who has filed a class-action suit against Madoff in federal court in Long Island.

Meanwhile, it was revealed yesterday that Madoff's investment business hasn't been inspected by the Securities and Exchange Commission since he registered with the agency in September 2006, according to Bloomberg News.

Generally, the SEC scrutinizes a newly registered firm's books in the first year and then checks them at least every five years.

Why is this? Who was covering for Madoff? Could his political connections have something to do with that?

Madoff's brokerage firm - which is separate from the investment business - was found to have three violations in a 2005 inspection for violating rules on trade prices. But the company was inspected last year without a claim.

While the effects of the alleged scam were felt worldwide, the brunt of its effect is being felt among wealthy country-club investors Madoff cultivated on Long Island and in South Florida.

Some of the Big Apple's wealthiest individuals and institutions may have been duped, including Yeshiva University - on whose board Madoff sat - Mets owner Fred Wilpon and the former owners of the Stop & Shop supermarket chain.

Other notables who have reportedly been stung by the collapse of Madoff's fund are Sen. Frank Lautenberg (D-NJ) and members of New York's Loeb family.

Considering Madoff was a very generous contributor to Lautenberg, Charles Schumer and Charles Rangel, among others, it's no wonder the media is avoiding any connection between Madoff and Democrats.

I recall Schumer milking Enron and Ken Lay for years. He seems unusually silent that one of his big bucks contributors has just pulled off a global scam of epic proportions.

Chuckie always has a Sunday press conference. What will it be about today? Being he's touted as a champion of consumers, what about all those bilked by his big bucks donor? Will he be urging a bailout of all those swindled by Madoff?

He's a member of the Banking and Finance Committees and this happened on his watch. Stay tuned.

(Image via NY Post).