Hedge fund mogul Raj Rajaratnam managed to post $100 million in bail, but his lawyer asked a judge today to reduce it to $25 million as well as given Rajaratnam permission to "travel freely in the contiguous 48 states." How else is he going to enjoy his country house in Connecticut and condo in Florida while he's still a free man? [NYT, WSJ]
Bernie Madoff's Ponzi scheme ultimately defrauded investors out of $21.2 billion, according to Irving Picard, the court-appointed trustee overseeing the case. That's considerably more than the $13 billion put forward by prosecutors at Madoff's sentencing in June. But that's a lot less than the $65 billion that's been bandied about for many months now, which includes the fictitious profits Madoff had "made" for his clients. The revised figure won't diminish his status as the biggest fraudster in American history. Madoff can still hold his head high when he steps into the prison yard and rest assured no one's taking that trophy away from him anytime soon. [NYT]
Bernie Madoff's life behind bars sure sounds, uh, colorful. A new lawsuit against the fraudster, which includes details from a recent visit to Madoff at a federal prison in North Carolina, says that he "shares a cell with a 21-year-old inmate convicted of drug crimes" (Madoff has the lower bunk); "eats pizza cooked by an inmate convicted of child molestation"; goes "walking around the prison track at night" for exercise; and spends his free time hanging out with "former Colombo crime family boss Carmine Persico and Jonathan Pollard, who was convicted of spying for Israel." [NYP]
Billionaire hedge funder Raj Rajaratnam was arrested on Friday morning on charges he participated in one of the biggest insider trading schemes in recent memory, one that netted him at least $25 million (but possibly millions more since the investigation continues.) Fortunately for Rajaratnam, the high-profile bust didn't end up depriving him of a weekend of freedom. By the end of the day, he'd been released on $100 million bail—the highest in history—and had to give up his passport and agree not to travel more than 110 miles from New York City. And today? He was back in the office for what must have been the awkwardest Monday morning meeting ever, telling employees that he's innocent and plans to fight the charges against him.
If you haven't had time to read the lengthy story about disgraced lawyer Marc Dreier in the new issue of Vanity Fair, you can check out the Dreier interview that aired on 60 Minutes last night. The segment doesn't reveal much new info on Dreier, who is now behind bars for defrauding investors out of $400 million. But you will get to see the lonely lawyer pad around the apartment where he was under house arrest this spring and where he didn't have much to do all day but munch on cereal, read the newspaper, and watch TV. "Do you have any friends?" asks Steve Kroft. "It doesn't seem so." [CBS]
When Irv Picard makes a promise, he keeps it. A few days ago, the trustee overseeing the Madoff mess said he planned to file a lawsuit against several other members of the Madoff clan—including Bernie's brother, two sons, and niece—for treating the family firm like a "piggy bank." And today he delivered, filing an action in federal bankruptcy court seeking the return of $199 million.
The Madoff show goes on. In an interview that aired on last night's 60 Minutes, court-appointed trustee Irving Picard said he plans to file a civil suit against Bernie sons, Mark and Andy, this week which will seek the return of $198 million. And just so no one in the immediate family feels left out, he'll be suing Bernie's brother Peter and niece Shana, too. [Dealbook]
It seems like every day brings with it another apartment, boat, or car that the government is now auctioning off because its owner is either behind bars or about to head to prison any minute now. Today is no exception! The 112-foot yacht that belongs to accused fraudster "Sir" Allen Stanford is now up for sale. It's supposedly in excellent condition and features a new interior made of mahogany. Although if you do buy the yacht, keep in mind that you probably won't be able to use it to cruise to Antigua. That could get dangerous! [Luxist]
We really can't imagine why, but Bernie Madoff's old assistant, Eleanor Squillari, has decided to auction off a portrait of Madoff that the fraudster gave her as a gift back in the late '80s. (Squillari mentioned the photo in the June issue of Vanity Fair: "Once, he gave me a picture of him taken by Karsh, the famous Canadian photographer, saying, 'Here, hang this over your bed.'") It's estimated to sell for between $3,000-$5,000. But hurry up! Bidding ends tomorrow. [Artnet via Dealbreaker]
You probably assumed that anyone who had the misfortune to entrust their money to Bernie Madoff lost their shirts, right? Not quite. Only about half of his clients lost money when you account for how much cash they withdrew from their accounts during the same time period, say prosecutors. Does this mean prosecutors might now consider cutting Madoff's jail sentence in half? We're guessing the answer is "no," but we thought we'd throw it out there. [NYDN]
Hassan Nemazee, the banker and Democratic mega-fundraiser who was indicted last month for allegedly using forged documents to obtain a $74 million loan from Citibank—and who is currently under house arrest at his Park Avenue apartment—is facing new charges. He's been indicted for bank fraud and "aggravated identity theft" as part of what prosecutors describe as a $292 million Ponzi scheme that involves Bank of America and HSBC, too. Also, in case you've been mispronouncing his name all this time, the AP points out it's hah-SAHN' nah-MAH'-zee. Please make a note of it. [AP, Reuters]
A few weeks ago, Ruth Madoff received a property tax rebate from Palm Beach County for $13,821.74. The problem: The check was made out to both Ruth and Bernie, and since cashing it would have required her to deposit it into their joint account—which is frozen—Ruth wrote a letter to the agency asking that it be reissued in her name only. Was this just one more attempt to avoid turning over the cash to the authorities? That's what some people are suggesting! [NYDN, Palm Beach Post]
Last week, banker and Democratic mega-fundraiser Hassan Nemazee was detained by FBI agents investigating whether Nemazee had used forged documents to get Citibank to provide him with a $74 million loan. The next day, though, Nemazee paid Citibank back the entire $74 million—presumably because he was hoping that if he returned the cash, he might be able to make the problem go away. But the move was a bit suspicious. If he had the $74 million sitting around, why would he have bothered carrying out the scheme in the first place?
Bernie Madoff's Montauk home goes up for sale this week. A spectacularly lavish retreat it is not. According to the AP, it's "cottage-size by superrich standards" and full of "faded furnishings," an impression echoed by the Times, which describes it as "less grandiose than one might expect given the scope of Mr. Madoff's $60 billion scheme."
Today is not a good day for Hassan Nemazee, the banker and Democratic heavyweight who served as finance co-chairman for Hillary Clinton's presidential campaign. He's now out on bail following his indictment on bank fraud charges, which is nice. And the terms of his release allow him to remain in his Park Avenue apartment under house arrest, which is good, too. But he can't do very much. He's not allowed to watch TV or use a computer. And making ends meet may be tough for Nemazee now that he's had to put his apartment and weekend home up as collateral, and the judge also prohibited him from applying for any new bank loans or credit cards. But have no fear, Hassan! We have a little workaround for you.
Hassan Nemazee, the banker and Democratic mega-fundraiser who was charged yesterday with forging financial documents to get Citibank to give him a $74 million loan, got to leave prison today. And just like Marc Dreier and Bernie Madoff before him, he'll be under house arrest from now on, confined to a $20 million, 14th floor co-op at 770 Park Avenue. The terms of Nemazee's release are pretty strict: The $25 million bail package requires him to pledge his Park Avenue apartment and house in Katonah as collateral; he'll be monitored round the click via electronic bracelet; and the judge also banned him from using computers, the Internet, or getting a new cell phone. (What's he going to do all day? God only knows.) Prosecutors argued for the tough terms because they said Nemazee is a flight risk, and by the looks of it, the judge was inclined to agree. But that's where you come in! The apartment next door to Nemazee's is up for sale. Maybe you want to move in and keep an eye on him? We can't say so for sure, but prosecutors might be willing to cut you a break the next time jury duty rolls around if you step up and perform the valuable service. A couple of pics and a floor plan of Apt. 14B are below.
