The Daily Caveat

• Counter Suit Filed in TD International Partners Dispute - Fleischmann Strikes Back!

  We've written several times about the recent legal disputes between Steven K. Fleischmann and his former partners at Washington, DC-based risk consultancy, TD International. The firm filed suit against Fleischmann claiming beach of contract and seeking to recover money they say Fleischmann pocketed by skimming business surreptitiously to a side-business,' [...]
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  Posted: November 25, 2009, 9:35am EST
  by Michael D. Thomas

• Kroll Hiring in Big Pharma Slap-Fight Brings Calls for Congressional Investigation

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  The bad blood between rival drug developers Amphastar and Momenta has bubbled over into public view. Questions over the firms' competing franchise for a generic version of the blockbuster blood thinner Lovenox has led to allegations of misconduct at the FDA, the hiring of a prominent security firm to investigate' [...]
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  Posted: November 16, 2009, 11:09am EST
  by Michael D. Thomas

• Meet Zvi Goffer... The Octopussy

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  Arrested late last week, Zvi Goffer's name has emerged as a lynchpin for insider information in the Galleon Group insider trading case. The track suit-wearing Goffer's activities represent another crooked crew operating alongside and in concert with the Raj Rajaratnam-led hedge fund scheme. One of Goffer's alleged key sources, Ropes [...]
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  Posted: November 16, 2009, 10:10am EST
  by MDT

• Back in the Swing...

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  Returning from a bit of vacation and slowly getting back in the swing. Been dealing with a rather large to-do backlog so my apologies to the kind tipsters that have sent me things. I'll be back in full swing by Monday. In the meantime, here's a bit of what we' [...]
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  Posted: November 13, 2009, 8:51am EST
  by MDT

• Governor Livingston, I Presume

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  Or more accurately, he presumes. Recent signs point to a run for the Montana Governorship in 2012 by notable (and occasionally controversial) investigator and intelligence old-hand, Neil Livingstone. Best known from his stints as a founder of GlobalOptions and Executive Action, Livingstone appears to be looking to add "Governor" to [...]
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  Posted: October 29, 2009, 1:04pm EDT
  by Michael D. Thomas

• Galleon SEC Complaint, NY State Charging Docs - Online Now

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  The SEC's got a brag page up devoted to the Galleon prosecutions. Included there, you'll find a summary of the case, a chart showing how the insider trading scheme operated as well as the commission's complaint against the firm. If you haven't reviewed it yet, well worth a look.Also, you'll' [...]
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  Posted: October 21, 2009, 9:36am EDT
  by Michael D. Thomas

• A Whole New Risk Model - Jules Kroll Profiled in the New Yorker

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  Well worth a read - and the article doesn't skirt some of the form's more notorious public scandals - but to get more than the abstract you'll either need a login or pick up the issue from the news stand - October 19th issue, p42. Also, for more on Jules [...]
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  Posted: October 15, 2009, 11:04am EDT
  by Michael D. Thomas

• What Failure at the SEC Gets You

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  A promotion, or a plum job in the private sector. Helping the firms you formerly regulated successfully navigate the Swiss cheese of securities regulation has to be an exciting career opportunity, especially when you can draw so readily on your previous failures in that roll.-- MDT [...]
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  Posted: October 15, 2009, 11:03am EDT
  by Michael D. Thomas

• K2 Global Partners, or Kroll & Son

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  By now any regular reader of this site (or the New York Times) is probably well aware of Jules Kroll 's splashy new credit rating adventure.What received somewhat less attention was the announcement of K2 Global Holdings, a new risk assessment consultancy that will carry on the more famliar investigative' [...]
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  Posted: October 01, 2009, 2:58pm EDT
  by Michael D. Thomas

• What You See Might Not Be Real

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  Old Chinese proverb: "A picture is worth a thousand words." Or was that Japanese? Even old Frederick R. Barnard couldn't quite keep it straight. In any case this work - What You See Might Not Be Real - from Chinese artist Chen Wenling captures quite a bit about the dynamics' [...]
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  Posted: September 29, 2009, 3:30pm EDT
  by Michael D. Thomas

• Jules Kroll's Ambitious Retirement

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  As has been widely reported over the last few days, Jules Kroll is getting back in the game. Since departing the sprawling investigative, security and consulting enterprise that he founded many have speculated what Kroll would turn to next. Now they have their answer. According to recent interviews, Kroll is [...]
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  Posted: August 31, 2009, 3:27pm EDT
  by Michael D. Thomas

• Fleischmann 1, TD International 0

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  The latest on the TD International, Steven Fleischmann dispute... A few weeks ago TDI filed an injunction requesting that Fleischmann's bank accounts be frozen - accounts allegedly containing funds siphoned off from TDI company coffers. In an August 4th Memorandum, U.S. District Court Judge Richard Leon slammed the door on' [...]
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  Posted: August 12, 2009, 3:12pm EDT
  by Michael D. Thomas

• What Might Have Been - Kroll at One Time Vied for Stanford Recievership

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  It retrospect, this would have been bad:...Antiguan authorities moved Friday to take control of Stanford's offshore bank, an action that could put the Caribbean island government at odds with the SEC. Antiguan regulators named British-based Vantis Business Recovery Service as a receiver for the bank that purported to have $8.5' [...]
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  Posted: August 05, 2009, 9:12am EDT
  by Michael D. Thomas

• R. Allen Stanford Point-Man, Tom Cash, Out at Kroll

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  Due to the controversy (and litigation) surrounding his connection to accused ponzi fraudster, R. Allen Stanford, Thomas V. Cash has stepped down from his position at Kroll. Cash had served as Kroll's Executive Managing Director in Miami. Cash's bio page on the Kroll website has already been removed.-- MDT [...]
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  Posted: August 03, 2009, 1:24pm EDT
  by Michael D. Thomas

• Tour De France Doping Investigation Uncovers Espionage Scandal

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  Perhaps you recall that back in 2006 American cyclist Floyd Landis, over vigorous and vocal protestations of his innocence, was stripped of his Tour De France victory when a doping test turned up abnormal levels of testosterone. At least that much about this New York Times story was familiar to [...]
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  Posted: August 03, 2009, 9:05am EDT
  by Michael D. Thomas

• That Was Quick - Make that TWO Stanford Investor Suits Filed Against Kroll

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  UPDATE: A colleague in the know has clarified something for me. Despite what the FT said, there are not two separate lawsuits. Rather, there are two complaints, one from Electri as we've previously described. The second complaint comes from National Electrical Contractors Association, which is the organization behind Electri. So' [...]
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  Posted: July 23, 2009, 9:28am EDT
  by Michael D. Thomas

• Kroll Facing Lawsuit Over Alleged Negligence in R. Allen Stanford Review

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  You may recall the recent report in Vanity Fair magazine that highlighted the cozy, long term relationship between white collar fraudster, R. Allen Stanford and Kroll - one that involved Stanford paying the investigative firm millions, reportedly, to run interference with inquisitive regulators.Kroll is facing its first lawsuit relating to [...]
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  Posted: July 21, 2009, 9:03am EDT
  by Michael D. Thomas

• We choose to go to the Moon

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  And everything you ever wanted to know about it... Onward to Mars and beyond!-- MDT [...]
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  Posted: July 20, 2009, 9:32am EDT
  by Michael D. Thomas

• Kroll Investigations, Amazon Book Reviewer?

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  Exactly why does "Kroll Investigations" have an Amazon reviewer profile? Strike anyone else as an oddity? Then again, the book does sound interesting.-- MDT [...]
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  Posted: July 16, 2009, 9:46am EDT
  by Michael D. Thomas

• New Format

  Number of comments: 0
  Pardon our dust. We're doing a bit of renovation around these parts. You may notice that The Daily Caveat has switched to a new layout, with a "breaking news" column and a featured articles section. My hope is to be able to cover more ground in this way so that' [...]
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  Posted: July 15, 2009, 10:04pm EDT
  by Michael D. Thomas

• Oppo Research Season Heats up in Virginia

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  With the Deeds / McConnell rematch coming soon on the bigger stage of the governor's race (they previously competed for the Virginia AG slot), and with Virginia suddenly a bellwether for the popularity of the Obama administration expect no punches pulled.First Round: GOP operative Jared Wheeler infiltrates insular Bath County,' [...]
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  Posted: July 14, 2009, 3:10pm EDT
  by Michael D. Thomas

• Dreier - Drop and Give Us 20

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  Details via the NYP.-- MDTPublish Post [...]
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  Posted: July 14, 2009, 2:56pm EDT
  by Michael D. Thomas

• In Case You Needed Further Evidence that Marion Barry is Insane

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  Just listen to these rambling-ass spooky voicemails he left to his latest ladyfriend (who he was FOR SURE not stalking). --MDT [...]
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  Posted: July 09, 2009, 1:32pm EDT
  by Michael D. Thomas

• News Group Settles on Phone Hacking Case, Keeps Evidence of Criminality Private

  Number of comments: 0
  The nut:Rupert Murdoch's News Group News­papers has paid out more than £1m to settle legal cases that threatened to reveal evidence of his journalists' repeated involvement in the use of criminal methods to get stories. The payments secured secrecy over out-of-court settlements in three cases that threatened to expose evidence [...]
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  Posted: July 09, 2009, 9:59am EDT
  by Michael D. Thomas

• TD International - Recent Motions Reveal Internal Strife

  Number of comments: 0
  An interesting note from a recent motion in ongoing the TD International lawsuit filed against the risk management firm's former partner, Steven Fleischmann... Apparently, in January of 2009 TDI loaned Fleischmann $45,000 in response to a claim of financial distress. But Fleischmann's plea of poverty came only weeks after he [...]
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  Posted: July 08, 2009, 8:47am EDT
  by MDT

• More on the Kroll / R. Allen Stanford Relationship

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  Via Intelligence Online...Subscription required (but worth your while).-- MDT [...]
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  Posted: July 08, 2009, 7:54am EDT
  by MDT

• News Service Files Suite Against CQ Claiming Corporate Espionage

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  Federal News Service, in legal papers filed in DC Federal court, claims that Congressional Quarterly paid an FNS employee to turn over confidential information and that CQ representatives used a customer password to access Federal News transcripts, removed the identifying marks, and them passed them of as CQ transcripts. FNS [...]
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  Posted: July 05, 2009, 10:57pm EDT
  by MDT

• a great vampire squid wrapped around the face of humanity... or the planet-eating Death Star of political influence

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  If you guessed Goldman Sachs, you'd be right. At least according to Matt Tabbi's latest piece in Rolling Stone.-- MDT [...]
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  Posted: July 01, 2009, 3:45pm EDT
  by MDT

• Choice Madoff Victim Quote

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  "I urged the judge to sentence him for the rest of his life, so that when he leaves prison, which means after his death, virtually unmourned by anyone on this earth, that he will then go down to the depths of hell where he will join those other people who" [...]
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  Posted: June 30, 2009, 8:50am EDT
  by MDT

• Madoff Gets 150 Years

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  Madoff said he "will live with this pain, this torment, for the rest of my life." 150 years was the maximum sentence on the 11 counts on which Madoff was convicted back in March.Meanwhile the search for Madoff's missing $65 billion continues.-- MDT' [...]
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  Posted: June 29, 2009, 12:22pm EDT
  by MDT

• Kroll, R. Allen Stanford and Beating Back the Regulators

  Number of comments: 0
  A nice clip from Felix Salmon, citing this Bryan Burroughs article from the new issue of Vanity Fair (and I must say, that while I don't often read VF, their recent piece of Bernard Madoff was also quite excellent). The Key graph from the Burrough's piece, as it comes to [...]
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  Posted: June 22, 2009, 9:09am EDT
  by MDT

• TD International Partner Lawsuit Continues

  Number of comments: 0
  Get Steven Fleischmann's side of the story in his Motion to Dismiss... If you need a bit of background as to why TD International might be suing one of their partners, try here and here.
  
  -- MDT
  [...]
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  Posted: June 22, 2009, 9:09am EDT
  by MDT

• NHL Hires Kroll to Investigate Would-Be Team Owner, Jim Balsillie

  Number of comments: 1
  Got to hate it when former associates of your target start speaking on the record (negatively) about your interview calls:
  ...when recently retired Research In Motion vice-president Peter Broughall received a call from one of Kroll's investigators this week, he felt that the line of questioning didn't jibe with what' [...]
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  Posted: June 15, 2009, 9:27am EDT
  by Michael D. Thomas

• When Your Financial Advisor is Charged With Fraud

  Number of comments: 0
  A few survival tips from Ron Lieber at the New York Times, speaking from personal experience. [...]
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  Posted: June 15, 2009, 9:25am EDT
  by Michael D. Thomas

• Former Siemens Manager, Two Others Face Charges in Munich

  Number of comments: 0
  Michael Kutschenreuter, Siemens former head of finance for Siemens communications is the latest to face repercussions from the Siemens bribery scandal that continues to dog the global engineering firm. Two others have been charged alongside Kutschenreuter, but their names as of this writing have not been made public.
  
  [...]
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  Posted: June 15, 2009, 8:33am EDT
  by Michael D. Thomas

• Nick Popovich, Lear Jet Repo Man

  Number of comments: 0
  Very, very colorful story from Salon. Worth your time.
  
  "Popovich is a super repo man, one of a handful of specialists who get the call when a bank wants back its Gulfstream II jet from, say, a small army of neo-Nazi freaks. For the past three decades, Popovich" [...]
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  Posted: June 10, 2009, 9:09am EDT
  by Michael D. Thomas

• Quellos Indictment Unsealed...

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  ...And what two prominent lawfirms are implicated in signing off for the dodgy tax shelters that got Quellos in hot water in the first place? Here's a hint. The go by CSM and BC in the indictment. See the AMLaw Daily for more.
  
  --MDT' [...]
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  Posted: June 08, 2009, 8:37am EDT
  by MDT

• Cali PONZI Scheme Brokwn Up, Trio Face Charges

  Number of comments: 0
  I know it seems quaint, a mere $23 million ponzi scheme. Nonetheless, the Feds have cracked it. If you had cash with Financial Solutions of Inland Empire, I'd make a call.
  
  -- MDT' [...]
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  Posted: June 08, 2009, 7:22am EDT
  by MDT

• Former Credit Suisse Banker is Fully a Fugitive

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  Julian Tzolov slipped house arrest one month past, as has officially ended up as a Fugitive, according to a recent announcement from Federal Prosecutors. Tzolov had been out on bail since April and had reportedly been working on a plea deal.
  
  Guess it fell through.
  
  [...]
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  Posted: June 07, 2009, 10:27pm EDT
  by MDT

• Madoff Scandal Cuts Short Father-Son Chats

  Number of comments: 0
  While suspicion continues to swirl around Bernard Madoff's family and close associates ($65 billion kicks up a heck of a lot of dust) their father's arrest apparently shut down communications completely between Madoff and his two sons, Andrew and Mark. And yet, their parting was not without a certain sentimentality, [...]
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  Posted: June 07, 2009, 10:04pm EDT
  by MDT

• So Wait, the DOJ Issues a "Stand Down" Order on Stanford Investigation

  Number of comments: 0
  The kicker? The stand down order came ten years ago...
  
  So what gives? [...]
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  Posted: June 07, 2009, 7:34pm EDT
  by MDT

• Enron Telecom Exec Pleads Guilty, Faces Home Confinement

  Number of comments: 0
  Didn't we finish with these guys a long time ago? Enron Broadband CFO Kevin Howard is finally getting his day in court, where he entered a guilty plea on one charge of falsifying a financial filing. Howard could be sentenced to a year of home confinement. This is cake' [...]
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  Posted: June 02, 2009, 10:31pm EDT
  by MDT

• SEC Investigates Itself, Details in August

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  The commission's inspector general, H. David Kotz, is conducting a review of more than a million emails from 27 SEC employees. The goal? To get to the bottom of how the securities regulator missed out on the Bernard Madoff fraud despite several close looks in recent years.' [...]
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  Posted: June 02, 2009, 10:16pm EDT
  by MDT

• SEC Returns to Pequot Capital Investigation

  Number of comments: 0
  Has the worm finally turned for SEC enforcement?
  
  -- MDT [...]
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  Posted: June 02, 2009, 10:13pm EDT
  by MDT

• Kroll Investigations

  Number of comments: 0
  Not the Kroll you're thinking of...
  
  -- MDT' [...]
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  Posted: June 01, 2009, 6:52am EDT
  by MDT

• FCPA Ramp Up Continues

  Number of comments: 2
  With 120 companies currently under investigation for alleged acts of foreign bribery.
  
  -- MDT [...]
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  Posted: May 29, 2009, 1:05am EDT
  by Michael D. Thomas

• Deutsche Bank Spying Scandal Widens

  Number of comments: 0
  Not much meat here, but at least enjoy that this is a German newspaper (Deutsche Welle) quoting Reuters, which itself was quoting a German newspaper (Frankfurter Allgemeine Zeitung). Long story short, Deutsche bank is not out of the woods yet and multiple investigations continue into the extent the corporation [...]
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  Posted: May 29, 2009, 12:56am EDT
  by Michael D. Thomas

• Trading Under The Influence

  Number of comments: 0
  Don't let this happen to you... 28 year old Morgan Stanley trader, David Connor Redmond rolled back in to the office a little too deep in his cups after a three hour lunch and promptly breached his firm's value-at-risk limits with a large short of West Texas Intermediate oil [...]
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  Posted: May 26, 2009, 7:47am EDT
  by Michael D. Thomas

• Foreign Corrupt Practices Act

  Number of comments: 0
  In a nutshell... from Law.com
  
  -- MDT [...]
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  Posted: May 25, 2009, 10:41pm EDT
  by Michael D. Thomas

• Madoff Investor, Merkin Agrees to Step Aside at Investment Fund

  Number of comments: 0
  J. Ezra Merkin, under investigation by New York AG, Andrew Cuomo has given up control of his investigative fund, Ascot Partners. According to many, Ascot was a major feeder fund for Bernard Madoff's lucrative ponzi empire. See Muckety's Ascot wheel of influence, right here.
  
  Attorney [...]
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  Posted: May 25, 2009, 10:29pm EDT
  by Michael D. Thomas