Skip to: Content
Skip to: Site Navigation
Skip to: Search
MONDAY, NOVEMBER 23, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


7

Ponzi Loot Puts Madoff Client Among Richest Americans

Picower made $7.2B, lands on Forbes list

Share

(Newser) – Jeffry Picower is a secretive guy, which must have made his turn in the spotlight this week all the more uncomfortable. The former lawyer, who was already being sued for $5.1 billion in alleged profits from Bernie Madoff’s Ponzi scheme, cracked Forbes’ list of the 400 wealthiest Americans on the same day a federal investigator sued him for another $2.1 billion, ProPublica reports.

Forbes listed Picower’s net worth at $1 billion, good for No. 371 on the list, but noted  he was “likely worth billions more.” The source given for his wealth is "Investments, Self-Made." If you tack the $7.2 billion in alleged Ponzi profits onto his total, he’d be the 32nd-richest person in America. Picower says he’s a Madoff victim, with $500,000 still invested when Madoff got caught. Trustee Irving Picard says Picower knew, or should have known, his profits were fraudulent.

In this March 10, 2009 file photo, Bernard Madoff exits Manhattan federal court in New York.
In this March 10, 2009 file photo, Bernard Madoff exits Manhattan federal court in New York.   (AP Photo/Louis Lanzano, file)
In this March 12, 2009 file photo, Bernard Madoff arrives at Manhattan federal court in New York.
In this March 12, 2009 file photo, Bernard Madoff arrives at Manhattan federal court in New York.   (AP Photo/ Louis Lanzano, file)
« Prev« Prev | Next »Next » Slideshow

Picower’s premise that making billions of dollars from a Ponzi scheme is a badge of innocence is
dubious at best. - Irving Picard, the court-appointed trustee trying to recover the missing Ponzi money

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
7 comments
VIEWING:
 
Toon
Oct 2, 09 11:53 AM CDT
Picower describes him self as a victim. If its true that he made 5 to 7 billion off Madoff and lost 500K their a lot of us who wouldn't mind his kind of misfortune. If if the feds are right he came away with ten thousand dollars for every dollar he 'lost.'. The rich are masters at whining. Reply
Vote up! Vote down!
+1
IN RESPONSE:
Spudsy
Oct 2, 09 12:56 PM CDT
On the other hand, since "Trustee Irving Picard says Picower knew, or should have known, his profits were fraudulent." then you can surmise that the other victims should have known the same thing. Of course he was smart enough and less greedy enough to take money off the table instead of trying to double it again. I would like to know why he gets punished for getting money out. Now, if he had inside knowledge that it was a scam, jail the bastard. But if he had no advantage over other investors who kept letting the money ride, I see no reason to punish him. Of course, it would be charitable of him to help some of the victims that were completely wiped out, but I don't see how you can punish a guy that was watching and being careful with his investments. I know people who sold Lehmann stock years ago. Should they cover some of the folks who rode it down?
Vote up! Vote down!
0
IN RESPONSE:
Spudsy
Oct 2, 09 1:07 PM CDT
Well, having looked a little deeper into Picowers business dealings, it seems like he had some type of power over Madoff. He was able to get 100 percent returns versus the already incredible 12 percent the other greedy bastards were counting on. Perhaps he had figured it out and was blackmailing Bernie? Nonetheless, you can't expect one investor to assume anything more than the others with all information to them being the same. Sounds like the trustee's argument is off target, he needs to find out what Picower knew that the others did not know or have access to.
Vote up! Vote down!
0
IN RESPONSE:
Toon
Oct 2, 09 2:00 PM CDT
Spudsy, Do you really think the guy investing billions with Madoff and getting 100% returns is on par with the guy investing 50K and getting 12% returns? Especially when he then hides 85% of his net worth? The only question I have is what is his actual net worth. If he is hiding billions of dollars than something stinks to high heaven. And even if he's completely innocent I still maintain that a person worth a billion dollars who loses 500K in a scam is far less a victim than the person who lost their entire nest egg.
Vote up! Vote down!
0
IN RESPONSE:
Spudsy
Oct 2, 09 5:59 PM CDT
Anybody getting 12 percent returns should be smart enough to get some of it off the table. It just isn't real. If you read my second post you will see that I am suspect of his information. I think he discovered what was going on and then blackmailed Bernie for the 100 percent returns. The trustee has said he may go after anyone who withdrew money from the account. But if the withdrawal was an innocent, no inside information, withdrawal, I don't see how that is fair. The people who withdrew nothing were more greedy than those who did. And now they get rewarded for it.
Vote up! Vote down!
0

View all 7 comments »

LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

232 Stories

TO THE BIDDER GO THE SPOILS

 Madoff Auction Nabs $1M 

Yours for only $6K—schemer's college ring

Nov 15, 09 9:27 AM CST
(Newser) - Those pining for a little piece of Ponzi-scheme history ponied up more than a million bucks yesterday for disgraced financier Bernie Madoff's stuff—more than doubling the $500,000 take expected. The proceeds from the 200-some items goes toward repaying Madoff's victims, reports the Wall Street Journal in a rundown... More »

MORE ABOUT:
auction • Ponzi scheme • Bernard Madoff • Bernard L. Madoff Investment Securities

FBI Arrests
Two More
Madoff Aides

Pair of computer programmers helped hide scheme, feds say

Nov 13, 09 9:17 AM CST
(Newser) - The Bernie Madoff net widens: The FBI has arrested two computer programmers accused of helping hide the massive Ponzi scheme. Jerome O'Hara and George Perez will be in court today on various fraud charges, including falsifying books. They are the third and fourth people arrested in addition to Madoff, who... More »

MORE ABOUT:
Ponzi scheme • Bernard Madoff • Bernard L. Madoff Investment Securities • Jerome O'Hara • George Perez

GOING ONCE...

 Madoff's Stuff Up for Sale 

Feds hope to score $500K off jailed fraudster's possessions

Nov 10, 09 6:50 AM CST
(Newser) - Anybody who wants a piece of Bernie Madoff will be able to choose from hundreds of the shamed Ponzi kingpin's possessions at an auction this weekend. Items on the block will include jewelry, furs, and, for the brave buyer, a New York Mets jacket with "Madoff" emblazoned on the... More »

MORE ABOUT:
auction • Ponzi scheme • Bernard Madoff • Ruth Madoff

232 Stories


Picower's Forbes entry
Forbes


Business  •  US 
TwitterFollow @NewserBusiness on Twitter

 
fraud • Forbes 400 • Forbes • Ponzi scheme • Bernard Madoff • Bernard L. Madoff Investment Securities • Jeffry Picower

from our news partners