yet kept their money with Bernie. The David Kotz 477 page report on SEC's blunder with Madoff reveals that RenTec was not only an indirect investor in Madoff via its Meritage Fund of Funds, not only was fully aware based on internal correspondence that Madoff was a pyramid scheme, but that it did nothing to notify the authorities, and also decided to keep half of its investment with Bernie, even after numerous internal emails certifying the illegitimacy of the fund way back in 2003.
Turns out in 2004 the SEC was conducting a routine examination of RenTec, when it encountered, among other likely very juicy things which however the SEC has no idea how to interpret, some correspondence in which the RenTec brass basically made it clear that everyone in the firm was aware that Madoff was a ponzi, and yet that convinced the fund to only trim its holdings by half in a Total Return Swap controlled by HCH Management, a vehicle managed by Madoff, which traditionally is simply a investment mechanism allowing massive leverage.
5 comments:
Our jails are going to be full.
Won't be long before a lot of lads give each other up. Should be a speed record to cop plea bargains. "Look, if I rat on mom will I only have to do twenty?"
And who is surprised?
Anon.
Joseph,
A ponzi is a wonderful thing while it is working. It is no crime to wish to enjoy the fruits of a ponzi, is it? To invest with Bernie was a privilege, you had to befriend him in Boca's Jewish Country Club to put your money with him.
Truth is that people would invest in the Medellin Maffia should it accept deposits.
Instead of throwing people to the lions as the Romans used to do, as punishment for white-collar crime we should impose the death penalty by throwing them in a small pen with a large pack of starving hyenas....that ought to lower the financial crime rate real quick.
Maybe not. These guys, who are really sociopaths, are so slick and persuasive, the hyenas will be queuing up to lick their hands.
"They are programmed to deceive and we are programmed to believe".
Anon.
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