According to Bloomberg,
Bernard Madoff planned every detail of his firm’s demise in the days before he was arrested five years ago today to avoid being marched past his 200 employees in handcuffs, the con man’s former finance chief told a jury.
Madoff, in papers spread across his desk, wrote a series of names and dates in a schedule of events leading up to the exact day his $17 billion Ponzi scheme would finally come to light, Frank DiPascali, the former executive, testified yesterday in Manhattan federal court in the trial of five ex-colleagues.
DiPascali, who joined Madoff’s company as a researcher in 1975, when he was 19 years old, said he learned of the plan during a private meeting in his office on Dec. 3, 2008, about a week before his arrest, after Madoff had been “staring out the window all day.”
“He turned to me and said, crying, ‘I’m at the end of my rope,’” DiPascali told a jury. When DiPascali expressed confusion, Madoff shouted, “I don’t have any more goddamned money — don’t you get it? The whole goddamn thing is a fraud!”
DiPascali is the highest-ranking former Madoff executive to testify in the first criminal trial stemming from the scheme, which was exposed after Madoff’s arrest by federal authorities at his Manhattan apartment on Dec. 11, 2008. Five of his former employees are on trial in federal court in Manhattan, accused of aiding his fraud for decades and getting rich in the process.
Posted in Commodities, Derivatives, Economy, Equity Markets, Events
Tagged Bernard Madoff, Criminal procedure, DiPascali, Federal Bureau of Investigation, Frank DiPascali, Madoff, Manhattan, Ponzi scheme
According to Bloomberg,
JPMorgan Chase & Co., the target of at least eight Justice Department investigations, was mocked and taunted by Twitter users after asking followers to send questions to an executive using the hashtag #AskJPM.
JPMorgan Headquarters (Bloomberg)
The online forum, which the bank canceled late yesterday, was intended in part to give college students an opportunity to communicate directly with a senior executive, said Brian Marchiony, a spokesman for the New York-based company.
“#Badidea! Back to the drawing board,” the bank posted less than six hours after its original post, which drew more than 6,000 responses from users in that span, according to social media tracking service Topsy.
The “Snarkpocalypse,” as @ReformedBroker dubbed it, started after the bank’s official Twitter account posted a call for questions at 1:26 p.m. in New York for investment bank Vice Chairman James Lee, using #AskJPM.
JPMorgan, the biggest U.S. bank, faces criminal probes including one into possible bribery in Asia and another examining its relationship with Ponzi scheme operator Bernard Madoff. The firm also has been negotiating an agreement with the U.S. to resolve multiple mortgage-bond probes, and two ex-employees were indicted for allegedly trying to cover up a record trading loss last year.
JPMorgan’s call for questions provoked jeers from Twitter users, who responded with sarcastic posts about the bank’s mounting legal woes.
“Can I have my house back?” @AdamColeman4 posted. “Is it true ‘JPM stands for ‘Just Pay More’?’’ asked @SconsetCapital.
Posted in Events, Finance, JPMorgan, New York, U.S.
Tagged Bernard Madoff, Chairman, JPMorgan Chase, New York, New York City, Ponzi scheme, twitter, United States Department of Justice
Daniel Bonventre (Bloomberg)
According to Bloomberg,
A former JPMorgan Chase & Co. (JPM) banker who managed Bernard Madoff’s account said the con man was on track to receive a $200 million loan less than a month before his arrest if the request hadn’t been dropped.
Daniel Bonventre, one of five ex-Madoff employees on trial for allegedly aiding the fraud, asked JPMorgan in November 2008 to borrow twice Madoff’s credit limit of $100 million, with U.S. Treasuries as collateral, Mark Doctoroff, who left the bank last year, testified yesterday in federal court in Manhattan.
“They are doing well financially,” Doctoroff said of Madoff’s securities firm in an e-mail to JPMorgan’s credit department on Nov. 17, 2008. “They are looking at the current market as an opportunity to make investments, true to their value investing style.”
The five former employees are accused of helping Madoff hide his fraud from customers, banks and regulators for years, and getting rich in the process. It’s the first criminal trial stemming from the scheme, which prosecutors say started in the early 1970s and imploded at the peak of the financial crisis.
The loan was part of a last-ditch attempt by Madoff to secure cash as his Ponzi scheme was collapsing and Bonventre’s role in the application process was one of the many examples of his involvement in the fraud, prosecutors have said.
Doctoroff, who was Madoff’s relationship manager at the bank from about February 2008 until Madoff’s arrest in December that year, said he didn’t know at the time Madoff had a formal investment advisory unit — the center of the Ponzi scheme involving fake trades — or that Madoff’s JPMorgan account was used for that business.
Posted in Economy, Equity Markets, Events, Finance, New York
Tagged Bernard Madoff, Daniel Bonventre, Economy, equity, financial markets, investment, investment bank, JP Morgan, JPMorgan, Manhattan, Modern Finance Report, Private Equity