Judge Freezes Peter Madoff's Assets

It may be a good idea right now to freeze the assets of anyone related to Bernie Madoff, don't you think?

A Brooklyn Law School student, who says his trust fund was thrown away in the Bernard Madoff mega-Ponzi scheme, yesterday got a judge to freeze the assets of Madoff's brother.

Peter Madoff, who had been trustee of law student Andrew Ross Samuels' now-destroyed $480,000 trust fund, is barred from selling any property or withdrawing any money at least until after an April 3 hearing in state Supreme Court in Nassau County.

Peter Madoff "knew or should have known" his brother's Manhattan investment firm was a fraud when he placed Samuels' fund with the firm, said Steven Schlesinger, Samuels' lawyer.

"It's good to see we're making progress towards getting the money," said Samuels, who said he wanted to use the funds to get started with his career.

Samuels' father, Howard, accused Peter Madoff of being "either incompetent or in cahoots [with his brother.]"

Peter Madoff was the compliance officer and senior managing director of his brother's firm.

In a stunning development, it turns out Peter Madoff also liked to shower money on Democrats, with the odious Chuckie Schumer a prime beneficiary. Chuckie received at least seven contributions from Peter over the years (and many more from brother Bernie), and Hillary Clinton got herself a few in recent years. Those Madoffs sure love the Democrats.

Democrat Sugar Daddy to Cop a Plea

Just when some media outlets are beginning to notice the cozy relationship between Bernie Madoff and a large number of Democrats, he goes and cops a plea deal.

Bernard Madoff has taken steps that suggest he could plead guilty as early as next week to charges that he carried out one of the biggest financial frauds in history, lawyers said Friday. Madoff, 70, is waiving his right to have a grand jury hear the government's case against him, agreeing instead to be charged directly by prosecutors, a step defendants take when they are preparing to plead guilty in a case.

Late Friday, U.S. District Judge Denny Chin called on potential victims who wish to be heard at a Thursday plea hearing to notify the court a day earlier. Madoff could enter a guilty or not guilty plea that day, depending on whether he has reached a plea deal with the government.

It is unclear when a possible plea deal could occur, and negotiations could still fall apart. Madoff has a hearing in Manhattan federal court scheduled for next week that could serve as the venue for a guilty plea.

A potential plea deal could mark an important step toward answering the vexing questions about how Madoff carried out his sweeping scheme and who else may have been involved in a fraud that has wiped out investors' life savings around the world.

Chuckie Schumer remains unavailable for comment.

Fox 5 NY Reports 'Exclusive' Details of Madoff Money to Democrats, Months After We Did

Nothing like being three months late to the party with an exclusive report.

MYFOXNY.COM - EXCLUSIVE: Fox 5 News has uncovered the whopping amount of money that disgraced financier Bernie Madoff, his sons, brother and wife donated to members of Congress. Madoff is facing accusations of masterminding the largest investment fraud in history and could go to prison for life if tried and convicted.

There is no evidence of any wrongdoing or quid pro quo, but the revelation of the donations raises questions about what influence in Congress may or may not buy. At least one former SEC accountant says that members of Congress have in the past pressured the commission to be a "kinder, gentler cop" with its inspections of Wall Street broker-dealers.

Nobody received more campaign contributions from the Madoff's than New York's senior senator, Charles Schumer. He tops the Madoff donor list at $29,300. His office Told Fox 5 it recently donated $8,000 of that to police and fire endowments.

While it's nice that some media outlets are finally getting around to reporting this story, it's hardly an exclusive.

We first noted Madoff's Democrat connections on December 13, again on December 14, December 15, December 23, January 15, January 23, February 12, and March 3.

But on March 4, Fox 5 NY has an exclusive report.

Shameless.

Chutzpah! Madoffs Wants to Keep $69 Million

Looks like Democrat sugar daddy and notorious swindler Bernie Madoff isn't the only one in his family with a giant set of onions. Seems like his wife has no shortage of gall, either.

His victims are facing bankruptcy and homelessness, but Bernie Madoff wants to keep $69 million worth of assets - including the $7 million penthouse where he's living in luxury under house arrest.

Court papers yesterday revealed that the confessed Ponzi schemer's wife, Ruth, has $17 million in cash sitting in Wachovia Bank.

The kosher-cookbook author also has another $45 million in municipal bonds on deposit at COHMAD Securities Corp., which is co-owned by her husband.

Last month, Massachusetts regulators revealed that Ruth Madoff withdrew $15.5 million from her COHMAD account in the weeks before her husband's arrest, including $10 million the day before the FBI showed up at their door.

Those withdrawals prompted new suspicions she was in on his admitted $50 billion Ponzi scheme, but Madoff and his lawyer countered that claim in court papers.

According to yesterday's order from Manhattan federal Judge Louis Stanton, the defense maintains that Ruth Madoff's holdings "are unrelated to the alleged Madoff fraud and only Ruth Madoff has a beneficial ownership in those assets."

Burned investor Hilda Hausner, 91, scoffed at the assertion.

"I'm angry, outraged. Really, I mean it gets more ludicrous every minute," said Hausner, who lost $800,000 that she and her 95-year-old husband, Harvey, invested with Madoff.

If you ask me, every nickel the two of them have should be frozen and eventually used to remunerate their victims.

If they need a couple of sheckels to scrape by, how about we start here and ask all those politicians who received money from Ruth Madoff to return her donations? Let's see if we notice a recurring theme here judging by these names: Joseph Biden, Edward Markey, Al Gore, Geraldine Ferraro, George Mitchell, Ron Wyden, Mark Green, Charles Schumer, Frank Lautenberg, Jon Corzine, Bill Bradley, Hillary Clinton, Ed Towns, Richard Gephardt, Martin Frost, Charles Stenholm.

Oh yes, they're all Democrats. Sure, like her husband, she sprinkled in a couple of small donations to Republicans, but the overwhelming amount went to Democrats.

No wonder the media doesn't want to mention any of this.

I recall several months ago Charles Schumer claimed he and his Democrat Senatorial Campaign Committee were going to return Madoff's stolen money. Doesn't seem like that's happened yet as all of the donations to Schumer are still listed in the plus column except for one small donation over 10 years ago.

Maybe some intrepid reporter could ask Mr. Press Conference about that. Although, perhaps not coincidentally, the frequency of Schumer's press conferences have dwindled remarkably ever since Madoff made news.

Funny how that is. The guy would show up for a can opening to get his mug on camera, and now he's virtually invisible.

What is he hiding?

What say you, Chuckie?

Stunner: Madoff's Wife Withdrew $10 Million The Day Before He Was Busted, Also Generously Contributed to Chuckie Schumer

You suppose she was in on Bernie's scam? I think so.

Bernard Madoff's wife withdrew $10 million from a feeder fund to his securities firm the day before he was busted by the feds, prompting new suspicions she may have been in on his $50 billion scam.

Ruth Madoff also took $5.5 million out of her account at Cohmad Securities Corp. on Nov. 25, about two weeks before her husband's Dec. 11 confession that his business was "basically, a giant Ponzi scheme."

The well-timed withdrawals came to light yesterday in a court filing by Massachusetts regulators seeking to revoke Cohmad's license to operate in the Bay State.

Commonwealth Secretary William Galvin alleged that Cohmad - a Madoff-owned brokerage named after him and co-founder Maurice "Sonny" Cohn - had refused to cooperate in a probe of its role in Madoff's admitted swindle.

Ruth Madoff's withdrawals were cited as proof of "Cohmad's knowledge about flows of funds to and from the Madoff-related accounts," with Galvin alleging that the two firms are "so intertwined that they could be viewed as a common enterprise."

We hate to beat a dead horse, but we'll continue to do so until the media reports the fact that the Madoffs were major contributors to the Democrats, and in particular to the loathsome Charles Schumer.

In fact, having chronicled the massive amounts Bernie Madoff gave to Schumer, it's worth noting Ruth Madoff was also very generous with her contributions to New York's unctuous senator. You think if the Madoffs were funneling thousands to Republicans it would be newsworthy? I think so.

Theres still no indication that Schumer and his Democrat pals have reimbursed any of the money Bernie Madoff gave to them in the past several years.

MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L. MADOFF INVEST.-SEC./CHAI
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary 09/12/08

MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L. MADOFF INVEST.-SEC./CHAI
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary 05/04/07

MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L. MADOFF INVEST. SEC./CHAI
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary 09/30/06

MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVEST SEC
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary 05/09/05

MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS SCHUMER, CHARLES E (D)
Senate - NY
FRIENDS OF SCHUMER $1,000
general 08/18/04

MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS SCHUMER, CHARLES E (D)
Senate - NY
FRIENDS OF SCHUMER $1,000
primary 08/18/04

MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS SCHUMER, CHARLES E (D)
Senate - NY
FRIENDS OF SCHUMER $1,000
general 04/08/02

MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS SCHUMER, CHARLES E (D)
Senate - NY
FRIENDS OF SCHUMER $1,000
primary 04/08/02

MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENT SECURIT SCHUMER, CHARLES E (D)
Senate - NY
VICTORY IN NEW YORK $1,000
primary 10/30/98

MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT SCHUMER, CHARLES E (D)
Senate - NY
SCHUMER '98 $1,000
primary 05/22/98

MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT SCHUMER, CHARLES E (D)
Senate - NY
SCHUMER '98 $1,000
general 05/22/98

MADOFF, BERNARD
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT SCHUMER, CHARLES E (D)
Senate - NY
SCHUMER '98 $300
primary 03/31/98

Oh, and who ran the DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE? Why, Chuckie Schumer did.

At what point will someone in the media ask our friend Chuckie about this?

'I'm a Prisoner In My Own House!'

Hey, I'm all for letting this guy walk the streets. I'm sure some of his victims wouldn't mind having a crack at him.

He's "The Prisoner of Park Avenue."

Bernie Madoff is whining to anyone who'll listen that he's being held captive in his palatial penthouse and unable to traipse around the Big Apple as he did before being busted for running a $50 billion Ponzi scheme, a source familiar with the scam artist told The Post.

"I'm a prisoner in my own house!" Madoff fumed. "I can't go anywhere! I'm stuck here all day!"

Madoff, who effectively is under house arrest as part of his $10 million bail, has been especially agitated that "he can't even go outside just to go to the corner, or get something to eat," the source said.

The source added that it is clear that the disgraced 70-year-old financial maven is feeling sorry for himself while hanging out in his $7 million pad - even as thousands of his victims scramble to avoid bankruptcy, loss of their own homes or worse.

Madoff's moaning comes less than two weeks after he dodged a bid by federal prosecutors to revoke his bail because he and his wife, Ruth, mailed their sons and others more than $1 million worth of jewelry last month.

Maybe his good pal, the unusually silent Charles Schumer, can help arrange some outdoor visits for his buddy Bernie.

Heartbreak: Former Con-man Larry King Ripped Off By Madoff

I guess when you have a history of ripping people off, you manage to dummy up when it comes to getting swindled yourself.

ADD Larry King to the ever-lengthening list of people who lost money with Ponz scum Bernie Madoff.

A perfectly placed source said the host of CNN's "Larry King Live" lost "over $1 million with Madoff. It was a lot of money." King's spokesman, Howard Rubenstein, declined to comment.

The personal loss would explain why the usually garrulous King, 75, has been so quiet about the Madoff scandal - even when it was announced that celebrities like Kevin Bacon and Kyra Sedgwick were among those who lost their life savings with the Ponzi-scheme mastermind.

It wouldn't be the first time King has faced financial fallout. In 1978, he declared bankruptcy. Page Six reported two years ago that King owed money to creditors in Miami Beach. Joann Biondi, author of "Miami Beach Memories," said, "Some locals snarl at just the mention of his name."

Very few Democrats and their media suck-ups want to mention Madoff, especially since he helped fill their coffers with his stolen money for so many years. At least one of the upsides to the biggest swindle in American history is we've seen much less Chuckie Schumer, one of his primary recipients, and for that we should be thankful.

Former GMAC Financial Services Chairman Subpoenaed in Madoff Scandal

Hmm. This is rather curious. This fellow J. Ezra Merkin claim to have taken quite the financial bath thanks to Democrat sugar daddy Bernie Madoff, but here we have New York AG Andrew Cuomo issuing a flurry of subpoenas for his records.

New York Attorney General Andrew Cuomo has issued subpoenas to former GMAC Financial Services Chairman J. Ezra Merkin, three of his funds and 15 nonprofits in his probe of alleged frauds on charities in the Bernard Madoff scandal.

The attorney general's office is seeking information from Mr. Merkin and his Gabriel Capital Corp., Ariel Fund Ltd. and Ascot Partners LP.

Mr. Cuomo also is seeking on information from 15 nonprofits, but the charities aren't targets of the probe.

The New York Daily News reported the subpoenas in its editions on Thursday.

At a press event Tuesday, Mr. Cuomo said his office was investigating frauds on charities and people who may have defrauded charities in the Madoff case.

Mr. Merkin has been under fire since it became public that he entrusted billions of dollars of his investors' funds to Mr. Madoff, who is facing criminal charges in connection with an alleged massive Ponzi scheme.

A lawyer for Mr. Merkin has previously said Mr. Merkin and his family were among the largest victims in the Madoff case and Mr. Merkin is "shocked" by the turn of events. The lawyer didn't immediately return a phone call seeking comment Thursday.

As we have noted previously, Madoff was very generous to the Democrats by contributing vast amounts to the DSCC and to New York Democrat Senator Charles Schumer, who has been unusually quiet when it comes to the Madoff swindle.

Well, what do you know? Schumer also received six contributions from Merkin over the years. Very interesting.

Although in fairness we'll note Merkin was much more bipartisan in his contribution overs the years than was Madoff, who gave overwhelmingly to Democrats. Still, it's curious that we find Schumer as receiving quite a bit of money from both Madoff and now Merkin. Does this imply any guilt on his part? Of course not. But we must apply the same standards of fairness that Schumer applies to Republicans and call for an investigation here and have Schumer testify as to what he knew and when he knew it.

All out of fairness, transparency and openness, of course.

It would also be nice if someone in the media actually looked into whether Schumer has actually returned Madoff's contributions, as he claimed he would.

The $100,000 Madoff donated to the Democratic Senatorial Campaign Committee, run by Schumer until last month, should also be returned, but "that is their decision," Schumer said.

Let's just imagine as a comparison if a Republican received $100,000 from, say, Kenneth Lay back in the late 1990s. Do you suppose they'd get away with such a mealy-mouthed explanation?

You know the answer.

How Many Madoff 'Victims' Profited?

Last month we half jokingly suggested investors of Democrat sugar daddy Bernie Madoff would be bailed out by the feds. Well, what do you know they're lining up to apply for up to $500,000 from the Securities Investor Protection Corporation, arguably tip money for some who've been swindled hundreds of millions.

Still, an interesting quandary now faces many of those "victimized" by Madoff: Some of them profited from his crimes.

Uh oh.

The many Bernard Madoff investors who withdrew money from their accounts over the years are now wrestling with an ethical and legal quandary.

What they thought were profits was likely money stolen from other clients in what prosecutors are calling the largest Ponzi scheme in history. Now, they are confronting the possibility they may have to pay some of it back.

The issue came to the forefront this week as about 8,000 former Madoff clients began to receive letters inviting them to apply for up to $500,000 in aid from the Securities Investor Protection Corp.

Lawyers for investors have been warning clients to do some tough math before they apply for any funds set aside for the victims, and figure out whether they were a winner or loser in the scheme.

Hundreds and maybe thousands of investors in Madoff's funds have been withdrawing money from their accounts for many years. In many cases, those investors have withdrawn far more than their principal investment.

"I had a call yesterday from a guy who said, 'I've taken out more money then I originally put in, but I still had $1 million left with Madoff. Should I file a $1 million claim?"' said Steven Caruso, a New York attorney specializing in securities and investment fraud.

"I'm hard-pressed to give advice in that situation," Caruso said.

Among the options: Get in line with other victims looking for restitution. Keep quiet and hope nobody notices. Return the money. Or hire a lawyer and fight to keep profits that were probably fraudulent.

No one knows yet how many people will emerge as net winners in the scandal, but the numbers appear to be substantial. Many of Madoff's long-term investors have, over time, cashed out millions of dollars of their supposed profits, which routinely amounted to 11 percent to 15 percent per year.

Jonathan Levitt, a New Jersey attorney who represents several former Madoff clients, said more than half of the victims who called his office looking for help have turned out to be people whose long-term profits exceeded their principal investment.

"There are a lot of net winners," he said.

Indeed there are. Now the question may be were any of them aware of this scheme?

Still unanswered is whether Chuckie Schumer and the Democrats have returned a cent of the hundreds of thousands Madoff so generously lavished upon them.

Nobody seems to care.

The Feds, meanwhile are arguing his bail should be revoked since he was planning on distributing $173 million just as he was busted.

Accused Ponzi scheme king Bernard Madoff had $173 million worth of signed checks sitting in his office desk - which he was planning to mail out to others - when he was busted, prosecutors revealed this afternoon.

The feds cited those approximately 100 checks - which were drawn against investors' funds - in arguing that Madoff should have his $10 million bail revoked, and be jailed pending trial.

"The defendant has shown at this point he cannot be trusted," prosecutors from the US Attorney's Office wrote in a filing with a Manhattan Federal Court magistrate judge.

Bernie Madoff, Crime Victim

Someone made off with a $10,000 statue from his estate. It should be the least of his concerns.

How does it feel, Bernie?

Swindler extraordinaire Bernard Madoff got a taste of his own medicine last weekend when a burglar stole a $10,000 statue from his posh, $9.4 million Palm Beach estate, according to a police report.

The theft occurred sometime between 3 p.m. on Dec. 19 and 11:30 a.m. last Sunday, a week after Madoff confessed to ripping off $50 billion from investors in a decades-long Ponzi scheme.

Meanwhile, the ubiquitous Chuckie Schumer, biggest recipient of Madoff's political contributions, remains unusually silent on the biggest swindle in American history. He's been tackling important issues like fees on gift cards.

Hey Chuckie, why no more Sunday pressers?

Silver Lining in Madoff Scandal: ACLU Loses $850,000

Merry non-denominational winter holiday!

Although we probably shouldn't enjoy the misery of others on Christmas Day.

Nah.

The American Civil Liberties Union sent out an emergency appeal to card-carrying members and donors this week after realizing it is a victim of Bernard Madoff's self-confessed Ponzi scheme.

"We've been hit hard in a way that no one could forecast," Alma Montcla, director of administration and finance for the left-leaning advocacy group, wrote this week.

"Two foundations that have been incredibly generous and longstanding supporters of our national security and reproductive freedom work have been victimized by the Madoff scandal - forced to close their doors and terminate their grants," the plea said.

"That means that $850,000 in support we were counting on from these foundations in 2009 simply won't exist."

Heartbreaking, isn't it? Still, don't extend much sympathy. They're still rolling in money with which to agitate against the country they hate.

The ACLU reported $80 million in income in 2007.

Who you should really feel sorry for is Elie Wiesel.

The grim news came as the Elie Wiesel Foundation, which previously said it lost $15.2 million invested with Madoff, released a statement that it was completely wiped out.

"This represented substantially all of the foundation's assets," the organization dedicated to fighting anti-Semitism said.

Wiesel himself lost a substantial amount of his personal wealth with Madoff, who targeted wealthy Jews and Jewish organizations for investments.

The largest political recipient of Madoff's dirty money, Charles Schumer (D-NY), is still mysteriously unavailable for comment

Update: Doug Ross reports Schumer himself, while receiving hundreds of thousands from Madoff, may have also been fleeced. That may be more amusing that the ACLU taking a hit.

Bernard Madoff: The Body Count Begins

I hope Bernie Madoff is enjoying his his holiday as we now get to start adding up the bodies.

Rene-Thierry Magon de la Villehuchet, a founder of the hedge fund Access International Advisors, was found dead early Tuesday in his office in Manhattan, the French business daily La Tribune reported on its Web site, after losing as much as $1.4 billion that had been invested with Bernard L. Madoff, the money manager accused of running a $50 billion Ponzi scheme. Mr. de la Villehuchet, 65, committed suicide, La Tribune said, citing a someone close to Mr. de la Villehuchet.

Mr. de la Villehuchet had been trying to recover the money that Access International raised in Europe and invested through Mr. Madoff’s business, La Tribune reported.

Paramedics responded to a call at a Manhattan address matching that of Access International, people briefed on the situation told DealBook. They found a victim, whom they pronounced dead, but have not yet identified the man.

Luxalpha, a $1.4 billion Luxembourg-based fund sold across Europe, invested in Bernard L. Madoff Investment Securities. Access International last week called Mr. Madoff’s arrest “a shocking development” in a note to investors. Investors in the fund included a unit of Rothschild and several clients of the Swiss bank UBS.

UBS had been the custodian and administrator of the fund until this year when Access International took over. No one answered the phone at Access International’s New York office.

Chuckie Schumer (D-NY), the largest recipient of Madoff's political contributions, still remains mysteriously unavailable for comment.

'You Dirty Bastard! And On Top of Everything, You Got a [Bleep]ing Commission To Get Me To Invest!'

The Bernie Madoff fallout is getting ugly.

IF alleged Ponzi-scheme mastermind Bernie Madoff is the most hated man in Palm Beach, then Bob Jaffe, one of Madoff's chief recruiters, is the second-most detested - and he nearly got his clock cleaned at Donald Trump's Mar-a-Lago Club.

A source tells Page Six that Jaffe, who persuaded friends to invest with Madoff and got a hefty commission for each transaction, showed up at the black-tie birthday bash for carpet czar John Stark on Saturday night.

"Nobody could believe he had the balls to show up because about 25 percent of the guests were people who lost hundreds of millions of dollars with Madoff," one witness told Page Six.

"One of the victims was Nine West founder Jerome Fisher, who lost $150 million. Fisher, who's 78, sees Jaffe and goes absolutely nuts. He stalks up to him and screams at the top of his lungs, 'You dirty bastard! And on top of everything, you got a [bleep]ing commission to get me to invest!'

"It nearly came to blows and I think people wanted to see a good fight, but they were separated . . . Jaffe looked like a ghost, but incredibly, he stayed all night. What nerve."

Meanwhile, the fatcat Democrat scam artist has some new jewelry to wear.

Mega-swindler Bernard Madoff has a new piece of "jewelry" that money can't buy - an electronic-monitor anklet that he must wear as he sits in his East Side penthouse awaiting trial for allegedly bilking investors out of $50 billion.

The decision by a judge yesterday came as Madoff's wife, Ruth, was reported to be under investigation over whether she helped keep secret records in the scam.

The judge's ruling allows the billion-dollar bandit to stay out of jail, even though he couldn't meet all the bail conditions.

Prosecutors and federal Judge Gabriel Gorenstein waived the stipulation that he provide four co-signers to his $10 million bond after he and his wife agreed to put up their three homes, in addition to a curfew and electronic monitoring.

I guess his property can't be seized just yet. This guy might want to keep a very low profile.

A lawyer who represents nearly 100 people who may have lost their shirts in Madoff's $50 billion Ponzi scheme called the no-jail arrangement "unfair."

"A lot of our clients, emotionally, would like to see him sitting in prison. There is certainly a lot of anger out there," attorney Brad Friedman said.

Former federal prosecutor Kerry Lawrence said the deal was reached likely because Madoff appears to have been cooperative from the start.

Friedman said he has begun trying to identify Madoff's assets, but that it was unlikely the effort would even make a dent in the losses.

"We have uncovered stuff that certainly is worth millions of dollars but in the context of this case, it's bupkis" - nothing, he said. "We've found houses, cars and boats, but that's chump change."

Democrats Set Up the Fall Guy For Madoff Scandal

You didn't think Bernie Madoff's cozy relationship and massive contributions to Democrats was going to get any notice, did you? Neither did I, although we did try to make note of it.

Well, it looks like the media will finally have their fall guy, so expect it to be banner news on a daily basis now that a Republican can be blamed.

The fraud investigation of Wall Street money manager Bernard L. Madoff took unusual twists Wednesday as the U.S. attorney general removed himself and the Securities and Exchange Commission looked into the relationship between Madoff's niece and a former SEC attorney who reviewed Madoff's business.

The developments reflect growing criticism that Wall Street and regulators in Washington have grown too close. Madoff himself has boasted of his ties to the SEC.

The question of Madoff's connection to regulators goes to the heart of the investigation of the alleged $50 billion fraud, SEC Chairman Christopher Cox told reporters.

Congress jumped into the Madoff scandal, too. The chairman of the House capital markets subcommittee, Rep. Paul Kanjorski, D-Pa., announced an inquiry that will begin early next month into what may be the biggest Ponzi scheme of all time and how the government failed to detect it.

Cox, of course, was a GOP Congressman and was appointed by George W. Bush, so he's the perfect guy to take the hit.

Oh, don't get me wrong. If this was still going on under his watch he should be concerned. But you just know the fact Madoff is a Democrat who largely donated to Democrats will be ignored.

The tangled web gets even murkier.

U.S. Attorney General Michael Mukasey recused himself from the Madoff probe because his son, Marc Mukasey, is representing Frank DiPascali, a top financial officer at Madoff's investment firm. The Justice Department refused to say when Mukasey became aware of the conflict but confirmed Wednesday he was removing himself all aspects of the case.

DiPascali was the Madoff employee who had the most day-to-day contact with the firm's investors. Several described him as the man they reached by phone when they had questions about the firm's investment strategy, or wanted to add or subtract money from their accounts.

The turmoil at the SEC came as the investigation into the scandal widened.

Look for craven opportunists like Dingy Harry Reid to take full advantage and lay the whole thing at the feet of Republicans, who better be on notice.

Senate Majority Leader Harry Reid, D-Nev., suggested Cox bears some of the responsibility for what went wrong.

"I served in Congress with Christopher Cox, but I don't think he's going to make the All-Star team," said Reid.

Harry Reid was Senate Majority Leader when Chuckie Schumer took over $200,000 from Madoff. I guess that means the Dim Bulb from Searchlight was an innocent benchwarmer.

'He's An Evil Person. It's Morally Disgraceful'

Congressman Peter King tells it like it is, while Chuckie Schumer, finally commenting after four days, offers some lame, mealy-mouthed drivel about what he's doing with the money he received from the disgraced Bernard Madoff.

He's the Grinch who stole . . . everything.

Accused mega-swindler Bernard Madoff yesterday skulked out of his Upper East Side penthouse and went into hiding as scores more charities, banks and individual investors revealed that they face financial ruin from his alleged $50 billion Ponzi scheme.

"He's an evil person. It's morally disgraceful," said Rep. Peter King (R-LI), who yesterday called for a congressional probe of the scam.

King said he recently attended several Christmas parties where guests included people who lost tens of millions of dollars in investments entrusted to Madoff, 70, who was busted by federal authorities last week.

One party guest pointed around a room, saying, "That guy lost $10 million, and that guy lost so many millions," King recalled.

Madoff seemed maniacal about keeping his scam going to the end.

As recently as Thanksgiving, he was pushing pals to invest more money with him, telling them he could work wonders in the volatile market, a source told The Post.

Madoff's alleged fraud has especially hurt charities linked to his own Jewish faith.

Schumer, meanwhile, who's been noticeably absent on this, the biggest swindle in world history perhaps, finally had something to say.

Sen. Chuck Schumer (D-N.Y.) Monday led a long list of officeholders and groups expected to give up more than $430,000 in political contributions from Bernie Madoff and his family.

"My money, I'm returning," Schumer said. The $6,000 Madoff gave him over the years would be sent to charity, he said.

The $100,000 Madoff donated to the Democratic Senatorial Campaign Committee, run by Schumer until last month, should also be returned, but "that is their decision," Schumer said.

Weak, Chuckie. Very, very weak. You ran the DSCC, you took the money from Madoff. Step up and demand they return it. Good grief, imagine the howls from this guy if Republicans were swimming in this ill-gotten money like the Democrats are?

Madoff contributed $164,650 to various campaigns and political-action committees - including $101,000 to the Democratic Senatorial Campaign Committee - over the past decade, records show.

That largesse helped Sen. Charles Schumer (D-NY), who chaired the DSCC, in his successful quest to win Democratic control of the US Senate.

Madoff also kicked in $6,300 to Schumer's congressional campaign committees.

Schumer yesterday said he is giving the $6,300 Madoff donation to three charities associated with police and fire unions.

Madoff also welcomed Sen. Hillary Rodham Clinton (D-NY) to the state by donating $1,000 to her initial Senate run in 2000.

Harlem Rep. Charles Rangel has received two $1,000 contributions from Madoff.

As for King's call for a Congressional probe: Good luck with that. If it were strictly Republicans who received money from this bum they'd be pounding the gavel already. Since the GOP received a pittance compared with the vast sums lavished on Democrats, you can forget Congress taking any action.

Meanwhile, get ready for a government bailout of the swindled investors. Chuck Schumer will probably be first in line. Maybe it's just me, but bailing out people because of gullibility and stupidity isn't the government's responsibility.

Trail of Madoff Victims Grows, Schumer Still Unavailable for Comment

The scandal that dwarfs Enron in scope continues to explode with NY Daily News owner Mort Zuckerman and director Steven Spielberg the latest victims to be reported.

Daily News owner and real-estate mogul Mort Zuckerman is one of the investors ripped off by swindler Bernard Madoff, it was reported today.

Zuckerman, who also owns US News & World Report, has "significant exposure" through a fund that invested virtually all of its assets with Madoff, The Wall Street Journal says, quoting a person familiar with his investments.

A Zuckerman spokesman did not comment to the Journal.

The Journal further reported that powerhouse movie director Steven Spielberg's charity, Wunderkinder Foundation, also got burned, investing roughly 70 percent of its money with Madoff. A spokesman said he couldn't comment on whether Spielberg had any of his own money invested.

Among the many Jewish charities that lost money in the scam was Nobel laureate Elie Wiesel's Foundation for Humanity, according to the Journal.

And New Jersey Sen. Frank Lautenberg's family charity also took a bath, investing most of its $14 million trust with Madoff, his lawyer told The Record of Bergen County.

Meanwhile, more European banks revealed that billions of dollars they entrusted to Madoff may have vanished - and a second Jewish charity abruptly shut down after losing its entire endowment.

Spanish banking giant Grupo Santander SA, which recently purchased Sovereign, a big US bank, said it placed $3.1 billion of its private banking customers in Madoff's care through its Optimal Strategic US Equity fund.

BNP Paribas in France said it had more than $350 million at risk. The private Swiss bank Reichmuth & Co. told its hedge-fund investors that $327 million of their money was invested with Madoff. European media also reported Union Bancaire Privée of Switzerland may've lost $1 billion.

And a spokeswoman for the Royal Bank of Scotland confirmed it had invested with Madoff, but provided no figures.

Early today, Japan's largest brokerage, Nomura Holdings, said it has lost about $306 million.

As we noted Saturday, Madoff was very generous to Democrats with his political contributions, notably to New York's senior Senator Chuckie Schumer and shady Congressman Charles Rangel.

Mysteriously there's no account of a Sunday press conference from Schumer, breaking a string of 582 consecutive Sundays when he held a press conference just to get some face time on television. The guy who would hold a presser to announce a can opening suddenly is camera shy.

On the upside, an actual news account finally has mentioned Madoff was a Democrat contributor. Well, that only took four days.

He was politically active, donating $25,000 a year to the Democratic Senatorial Campaign Committee as well as recent races by New York Sens. Charles Schumer and Hillary Clinton and New Jersey Gov. Jon Corzine. Madoff has also been an active donor — through the Ruth and Bernard Madoff Foundation — to New York philanthropies including The Doe Fund and Girls Inc.

Update: Sam Stein at the Huffington Post notes Democrats may return donations.

The Democratic Senatorial Campaign Committee received $100,000 in donations from Madoff during the past four years. Sen. Chuck Schumer, who headed the DSCC until stepping down this year, separately has received $39,000 from Madoff since 1998.

Will the committee return these funds -- taken, in part, from duped investors? Matt Miller, a spokesperson for the DSCC, replied that "it is under review."

Or take, for example, Sen. Frank Lautenberg. The New Jersey Democrat left the bulk of his family's charity -- which donated to causes like breast cancer research, the NAACP, and performing arts -- to Madoff's stewardship, his foundation's lawyer told the Associated Press. But as of now, there is no telling where the funds went and what is left. The Senator, one of the wealthiest members of the Senate, received a $7,600 donation from Madoff to his Victory Fund in 2007 -- a pittance compared to the cash his charity likely lost.

An aide to Lautenberg said that the office would be "ridding ourselves of the contributions" but had not yet determined the best method of doing so.

Other Democrats who received Madoff money include Jeff Merkley, the incoming Oregon Senator, who took in $2,300 in donations this past April; Ron Wyden, the Oregon incumbent, who received $4,000 in donations in March 2003; Dick Gephardt, the former Speaker of the House, who got a check for $2,000; and Rep. Ed Markey, who was sent two checks of $2,000 each in June 2004.

Peter Madoff, Bernard's brother, was even more lavish with his contributions, spending more than $66,000 on candidates and committees in the past decade, including to Sens. Hillary Clinton ($2,300 in 2008, $4,600 in 2007), Chuck Schumer ($6,000 in total) and Ron Wyden.

Via Instapundit.

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).

Fatcat Democrat Contributor Busted in World's Largest Ponzi Scheme

He forked over a lot of money to Democrats, and a sporadic Republican here and there, but he seemed to be particularly enamored with the unctuous Chuckie Schumer, who mysteriously was unavailable for comment. I count at least nine donations to Chuckie, as well as several to the cadaver in formaldehyde, Frank Lautenberg, and everyone's favorite shyster, Charlie Rangel.

Yet you can be sure when you read the fallout of this scumbag Bernard Madoff, you'll hear very little about him being a bigtime Democrat fundraiser.

Bernard L. Madoff, a former chairman of the Nasdaq Stock Market and a force in Wall Street trading for nearly 50 years, was arrested by federal agents Thursday, a day after his sons turned him in for running what they said their father called "a giant Ponzi scheme."

The Securities and Exchange Commission, in a civil complaint, said it was an ongoing $50 billion swindle, and asked a judge to seize the firm and its assets. "Our complaint alleges a stunning fraud that appears to be of epic proportions," said Andrew M. Calamari, associate director of enforcement in the SEC's New York office.

In a separate criminal complaint, Federal Bureau of Investigation 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 losses of approximately billions of dollars."

Can you say investor bailout, boys and girls? I know you can.

Some of America’s wealthiest socialites were facing ruin last night after the arrest of a Wall Street big hitter accused of the largest investor swindle perpetrated by one man.

Shock and panic spread through the country clubs of Palm Beach and Long Island after Bernard Madoff, a trading powerbroker for more than four decades, allegedly confessed to a fraud that will cost his wealthy investors at least $50 billion – perhaps the largest swindle in Wall Street history.

Mr Madoff, 70, a former Nasdaq stock chairman, was apparently turned in by his two sons and arrested on Thursday morning at his Manhattan apartment by the FBI. Andrew Calamari, a senior enforcement official at the US Securities and Exchange Commission, described the scheme as “a stunning fraud that appears to be of epic proportions”.

Update: More on the carnage.

Panicked investors scrambled desperately yesterday to determine whether their life savings had been wiped out after a Wall Street legend allegedly admitted blowing as much as $50 billion in what is emerging as the largest Ponzi scheme in history.

Among several big-name investors who trusted former Nasdaq Chairman Bernard L. Madoff with their cash were New York Mets owners Fred Wilpon and Saul Katz, who may have lost as much as $500 million in the scheme, sources said.

New Jersey Sen. Frank Lautenberg also confirmed he had invested money from his charitable organization through the 70-year-old Madoff's company, though he did not say how much.

Around 20 angry investors stormed the lobby of Madoff's offices yesterday to find out what happened to their life savings - only to be ordered to leave by police.

"When I found about it, I felt lousy, I held my head," said one elderly man, who was too distraught to say how much money he may have lost. "We've got problems."

While the scope of countless other investors' losses remains unclear, it appears that most of the victims reside in New York and South Florida and were among Madoff's closest friends and business associates.

Madoff allegedly told authorities that he estimated he blew through $50 billion in the scheme he called "one big lie."

"This is a major disaster for a lot of people," said investor Lawrence Velvel, 69, dean of the Massachusetts School of Law who said he and friends had lost millions among them.

Just imagine the attention Madoff would be getting if he were a major donor to the GOP.

The Post wonders where Eliot Spitzer was while all this was going on?

The scope of the alleged fraud runs to $50 billion - nearly $20 billion more than was lost in the Enron collapse.

Our question: Where was Eliot Spitzer when Wall Street really needed him?

After all, the former New York attorney general (and now disgraced ex-governor) styled himself the "Sheriff of Wall Street" - using dubious powers to bully executives, even when the evidence against them was scant.

And on those rare occasions when browbeaten company heads refused to cave in, Spitzer almost never won in court.

Meanwhile, real fraud on a massive scale was apparently going on right under his nose.

Warnings as far back as 1999 were ignored. Who was protecting this guy?