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Bernard Madoff is no longer the lone ranger in the world's biggest Ponzi scheme, his accountant, David Friehling, was arrested March 17th for his part in the notorious $65 billion investment fraud. The accountant repeatedly signed off on Madoff's bogus financial reports, helping the fraudster continue his scheme.

Friehling was not charged for knowledge of the investment fraud, but for fallaciously certifying that he audited Madoff's financial statements. According to Acting U.S. Attorney Lev Dassin, "Mr. Friehling's deception helped foster the illusion that Mr. Madoff legitimately invested his clients' money."

Friehling turned himself in to authorities and was charged with aiding and abetting, investment advisor fraud, and four counts of filing false statements with the U.S. Securities and Exchange Commission. The 49-year-old could face 105 years in prison for his actions.

Friehling was paid anywhere from $12,000 to $14,500 per month between 2004 and 2007, by Madoff's firm. Also, Friehling and his wife invested with Madoff and had an account of more than $500,000.

Investment Fraud Attorney

Recovering lost investments in a massive scheme like Madoff's can be extremely difficult. Our team of securities attorneys has the skill and experience needed to recover your funds.

If you have lost money in the Madoff investment fraud, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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Government officials plan to seize Bernard Madoff's assets. Gradually, prosecutors are identifying Madoff's many assets and filing that they intend to seize them. Madoff, the perpetrator behind the world's largest Ponzi scheme, admitted March 12th to the $65 billion scheme and is now behind bars, awaiting sentencing on June 16th.

According to the Houston Chronicle, Nearly $100 million in assets owned by Madoff and his wife Ruth have been identified and are subject to seizure in the near future. The $100 million includes: real estate, cash, bonds, automobiles and boats. Also up for seizure is the Madoffs' $7 million Manhattan apartment and their homes in New York, Florida and France.

Prosecutors also plan to seize assets in Ruth Madoff's name including: $17 million cash and $45 million in bonds. The Madoffs' lawyers insist Ruth is the sole owner of the cash, bonds and Manhattan apartment and that they are not related to her husbands $65 billion Ponzi scheme. In addition, loans given to the Madoffs' sons, Mark and Andrew, adding up to nearly $32 million are on the list of assets to be seized.

Prosecutors have yet to actually file a seizure request. They have filed a "notice of intent" to seize the assets, warning the Madoffs, their team of attorneys and Judge Denny Chin of the upcoming request.

On December 31, 2008 the Madoffs claimed they were worth $826 million, $700 million of which was Bernie's ownership in Bernard L. Madoff Investment Securities. Recently, however, outside evaluators value the company at only $10 million.

Investment Fraud

Our team of securities attorneys has the expertise and experience necessary to take on crooks like Bernie Madoff and have helped many families recover from the financial burden brought on by such schemers.

If you or a loved one has lost investments in the Madoff Investment Fraud or any other investment scam, contact a securities attorney at Arnold & Itkin LLP for a free consultation of your case.

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Bernard Madoff, the man who swindled thousands out of $65 billion, plead guilty to 11 criminal charges on March 12th and was sent to jail. Others are being investigated, but no charges have been filed.

Thursday morning, Bernie Madoff appeared in front of U.S. District Judge Denny Chin and plead guilty to his $65 billion Ponzi scheme. As victims looked on from the gallery, he apologized for his wrongdoing explaining "as years went by, [he] realized [his] arrest and this day would inevitably come." One by one, Madoff plead guilty to 11 criminal charges:

• Securities Fraud
• Investment Advisor Fraud
• Mail Fraud
• Wire Fraud
• International Money Laundering to Promote Specified Unlawful Activity
• International Money Laundering to Conceal and Disguise the Proceeds of Specified Unlawful Activity
• Money Laundering
• False Statements
• Perjury
• Making a False Filing with the SEC
• Theft from an Employee Benefit Plan

The 70-year-old faces 150 years in prison for the charges.

In his apology, he maintained that his brother and sons had no role in the scheme and explained that he began getting results for his clients "at any cost" in the early 90's, during poor economic times. After months of investigation, however, SEC officials believe he began the scheme in the 80's.

Earlier in the week Madoff refused to agree to a plea deal with prosecutors and admit to conspiracy, implicating others. Because of his refusal investigators will have no help in identifying others involved in the scheme. According to Dr. Michael Welner, forensic psychiatrist, "the old man falls on his sword" attempting to take the blame for all and save the others involved in the fraud.

Madoff's attorney asked that he be put back on house arrest, but Judge Chin sent him straight to jail saying "he has the incentive to flee" and "the means to flee." SEC officials have located an estimated $950 million of Madoff's assets and continue to search for other funds they are sure he has hidden.

Prosecutors want Madoff to pay $170 billion in restitution to satisfy the 5,000 clients and 13,567 accounts he defrauded.

Ponzi Scheme Attorneys

Getting through the tough financial road that follows after being duped by an investment fraudster can be extremely difficult. Our team of securities attorneys has helped many people get back on their feet in the wake of an investment fraud emotionally and financially.

If you have lost money due to Bernie Madoff's Ponzi scheme or any other investment fraud, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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76-year-old Arthur Nadel faces 40 years in prison and fines of up to $5.25 million for alleged securities fraud and wire fraud.

Arthur Nadel, a Sarasota, FL resident, operated two firms: Scoop Management and Scoop Capital which controlled six different hedge funds: Victory, Victory IRA, Viking IRA, Scoop Real Estate, Valhalla Investment Partners and Viking Funds.

In Allen Stanford style, Nadel misled 500 to 600 investors nationwide, purporting assets of nearly $350 million when, in reality, they totaled only about $1 million. Also, last year's returns were negative, but Nadel told his clients their returns were 11 and 12%. The Securities and Exchange Commission (SEC) has charged Nadel with securities fraud and wire fraud and has frozen his assets, both personal and business.

The Search for Nadel

Just after the Bernie Madoff bust, partners at Nadel's Scoop Management and Scoop Capital suggested he hire an independent accountant to audit the books. According to reports by USA Today, Nadel agreed to the audit on January 8th and disappeared on January 14th.

The next day, authorities found Nadel's vehicle in a local airport parking lot. He also left his wife a handwritten note explaining he left documentation enough for her to take over what is left, "even documentation for divorce" and felt "extreme guilt." He also advised her to withdraw money as soon as possible, knowing the assets would be frozen shortly.

Federal officials traced Nadel's cell phone transmissions to New Orleans and on January 27th he surrendered to officials in Tampa. Later that day he was seen in a courtroom wearing shackles. The judge handling the case, Mark Pizzo, denied bail for the swindler claiming he was a flight risk and might have money stashed away somewhere.

The Damage

According to the SEC, Nadel has been running his investment fraud since 2004. During that time Mace Securities International invested $2 million dollars with Nadel and lost nearly half. Another investor is left with only $3,000 after a recent statement lists his fund as worth $603,000.

In an attempt to recover lost investments and repay swindled investors, Nadel agreed to work with the SEC, identifying his assets. According to reports, however, he has been uncooperative. Authorities have discovered that $1.25 million was recently transferred from two of the hedge funds into a secret personal account and found two private jets and 500 acres of land in North Carolina.

Securities Fraud Attorney

Sorting through the tangled mess fraudsters like Nadel create can be exhausting. A securities attorney with expertise in cases like this can help you find the answers and resources you need to recover lost investments.

If you have lost money in a securities fraud, contact an experienced secuities fraud attorney at Arnold & Itkin LLP for a free evaluation of your case.

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Investors who lost money in the Bernie Madoff investment fraud were shocked by what they heard at the very first investors' meeting last week – there is evidence to suggest that Madoff bought no securities and made up monthly statements sent to customers.

At least 300 investors with their investment fraud lawyers gathered in Manhattan at a meeting that was meant to calm panic-stricken investors, but ended up doing just the opposite. According to Irving Picard, who was appointed as a trustee by the court and given the responsibility of overseeing the sale of Madoff’s assets in order to pay his victims, there is evidence that the shamed money manager bought no securities for his customers over a period of 13 years, at least. In short, he only used investor money to pay off other investors in a classic Ponzi scheme. Needless to say, this revelation has only added to investors' fears. The meeting was attended by several investors, many of them senior citizens who have been milked off their entire life savings to the tune of millions of dollars each. Several of them have been forced to sell their homes and go back to work in an effort to financially cope with their losses.

There was at least one ray of hope for frazzled Madoff investors. Picard confirmed that he was able to generate funds, amounting to $650 million from Madoff asset sales. He expects to recover $950 million in all to help compensate customers who submit claims before the July 2nd deadline. These claims are in addition to the $500,000 that each investor is eligible for from the Securities Investor Protection Corporation.

For many investors, another concern has raised its head; investors who have received significant returns from their Madoff account over the years may have to return it in what is known as a “clawback.” These investors may find that the returns they enjoyed for so many years are not really theirs, because the accounting statements were bogus and no investments were actually made in their name. Simply put, these investors did not receive “returns”, they only received other investors' money. It is a bitter pill to swallow and thousands of investors will be looking at more painful days in the  months ahead. Nearly 2350 investors have filed claims to recover funds as of now. Across the spectrum of victims, which includes philanthropists, entertainers and retirees, one feeling runs high – they have been let down not only by Madoff, but by the Securities and Exchange Commission which failed to act on whistleblower efforts to bring the ongoing fraud to their attention.

Investment Fraud Attorneys

The process of recovering funds from an investment fraud can be daunting. It takes time, effort and expertise that stressed securities fraud victims don't typically have. Our team of securities attorneys has the expertise and experience it takes to get you the compensation you deserve.

If you have lost money in the Madoff Ponzi scheme, contact an experienced securities attorney at Arnold & Itkin LLP for a free consultation.

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The recent Stanford investment fraud scam, which unveiled an $8 billion securities fraud, has made one very unlikely person the most sought-after at theSecurities Exchange Commission(SEC) –the whistleblower. Whistleblowers, who are typically thought of as selfish snitches, have gained the positive attention of the country's premier financial regulating agency.

A few weeks ago, a fraud investigator testified to a stunned Congressional hearing about the many times he attempted to bring the ongoing Madoff fraud to the attention of SEC officials. Every time, Harry Markopoulos attempted to alert seniors about Madoff's Ponzi scheme, he was thwarted. Among other things, officials at the SEC told him to quit pursuing Madoff's fraud because he "was too big." The agency, Markopoulos testified, is staffed by "financially illiterate" people. Markopoulos also added suggestions for the way the SEC can revamp its regulating procedures so that more investment fraudsters like Bernie Madoff and Allen Stanford can be stopped early on.  These recommendations include staffing the agency with more street smart financial brains and moving the agency to New York or Boston.

According to insiders, nearly half of all investment frauds, including Ponzi schemes, are revealed by the tips of whistleblowers. At the SEC, inspector general David Kotz is working to ensure that whistleblowers who have access to information about ongoing investment scams are encouraged to come and share their information with the SEC. The agency is contemplating an incentive structure, so people will be encouraged to come forward with tips and awarded.  At the end of the day, however, all these recommendations could be useless if they are not implemented quickly. Bureaucratic hurdles and simple lack of will could leave the SEC to continue down the path the becoming a paper tiger that appears on the scene only after all damage has been done and billions have been wiped clean.

Stanford Investment Fraud Attorney

Losing hard earned money in an investment fraud, like the one run by the Stanford Financial Group, can be an emotionally draining experience. Investors may struggle not only with concerns of their long term financial security, but also their immediate and short term financial needs. In these difficult times it helps to have the assistance of a securities attorney who can help you understand your financial situation and the complexities involved in the claims process.

If you have lost money in the Stanford Group Investment scam, contact a securities attorney at Arnold & Itkin LLP to get the help and resources you need. 

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A prominent investment adviser in Chicago, Illinois has been accused of investment fraud by the Illinois securities department.

Ralph Russell is a well known investment adviser, who, in the past, hosted a radio program doling out financial advice. He has been accused, by the Illinois Secretary of State's Securities Department, of defrauding at least 3 clients of $260,000. According to sources, the fraud was run in the same manner as Bernie Madoff's scheme, in that it is a Ponzi scheme. The scale of the fraud of course is markedly lower than Madoff's audacious $50 billion scam, but the charges Russell faces are similar. Russell, according to reports, sold customers fake shares in investment funds through his RWR Capital Management LLC. He then used new funds coming from clients to pay off early investors. It worked like a classic Ponzi scheme and seems to have run from September 2004 until October 2007. Clients were tricked by false account statements, convincing them that they were indeed making money in Russell's scheme, while in reality, the funds were siphoned off to Russell's account or to pay overdraft fees to the bank. Russell, if found guilty, may be fined and also barred from dealing in securities in the state of Illinois.

Ponzi Scheme Fraud

The term Ponzi scheme in recent days has become much too familiar to the general public. A Ponzi scheme, simply put, is an investment fraud that promises investors incredibly high returns. Investors are promised minimal risk and all too often, are taken in by the promise of high returns at low risk. It is one of the oldest investment fraud schemes, and its low risk, high yield mantra has helped it become one of the most successful forms of investment fraud. A Ponzi scheme works similarly to a pyramid scheme. Here, the fraudster collects funds from investors, and uses them to pay off previous investors. As long as the number of investors is limited and there is enough money to pay off previous investors, Ponzi scheme fraudsters have little risk of getting caught. However, when funds begin to dry up, older clients cannot be paid as quickly, which is when the scheme begins to crumble. The financial meltdown that went into full gear a few months ago resulted in a credit crunch, which meant that Ponzi scheme fraudsters like Bernie Madoff and Ralph Russell were unable to continue making payments to earlier investors and keep the fraud alive. That is why there have been a large number of Ponzi scams uncovered since the meltdown began. These fraudsters are able to survive well in times of a booming economy, but as soon as the economy falls, their schemes are busted.

Investment Fraud Lawyers

Ponzi scheme investment fraud claims can be hard to pursue because there may be so many parties that can be held liable. An investment fraud attorney can help you pursue claims for your losses.

If you have lost money in an investment fraud, contact an investment fraud lawyer at Arnold & Itkin LLP for a free consultation.

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Investment fraud lawyers representing investors who were burned in Bernard Madoff's alleged $50 billion Ponzi scheme are attempting to hold their banks liable.

At least one lawsuit in Florida is attempting to place liability on Banco Santander. The company heavily invested in Madoff's scheme through its investment management company, Optical Investment Services SA. The Florida lawsuit is a class action against Banco Santander, Optimal Investment and other agencies. The lawsuit claims that Banco Santander indulged in violations of federal security law and committed “gross negligence, negligent misrepresentation and unjust enrichment." The company has offered to settle with clients whose investments in Optimal Strategic U.S. Equity Fund were impacted by Madoff's scheme. The plaintiff's counsel, however, has called the settlement offer “misleading” because customers will be required to release the bank from claims as part of the settlement.

Meanwhile, the New York Times reported that the Westport National Bank is under scrutiny because $60 million of its costumers' money the bank had in an account in its own name, with funds flowing into the Madoff scheme, are long gone. The bank's relationship with Madoff was revealed when a Florida couple, who believed they were investing with Westport National, began investigating how much money they had lost to Madoff. The bank has said it only maintains custody accounts for the customers who knew they were investing in Madoff's scheme. Westport has refused to confirm exactly how much of their customers' money made its way to Madoff in his investment fraud scheme, but documents show that approximately $60.7 million of the bank's money was in the Madoff account in November last year. Money from a number of separate custody accounts was pooled into a single account. The role of Robert L. Silverman, a consultant who apparently recommended the scheme to custody account holders, has also come to light. Mr. Silverman apparently received a commission from the fees Westport collected from its clients.

Investment Fraud Lawyer

The Bernard Madoff swindle, like many others that have been exposed in recent months, is complicated and often involves more than a single party being held liable, including hedge fund managers who gambled with their clients' money and banks like Westport that dealt with questionable schemes. Pursuing claims for investment losses requires the expertise of an experienced investment fraud attorney who has experience handling such claims.

If you have lost money in the Madoff scheme, contact an investment fraud attorney at Arnold & Itkin LLP for a free consultation.

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At the beginning of the decade, just as Bernard Madoff was beginning to see his grand Ponzi scheme take off, an investment fraud investigator, alert to the signs of such scams, warned the Securities Exchange Commission (SEC) about the swindle. But as Harry Markopoulos testified at congressional hearings last week, the "inept and financially illiterate" SEC ignored his warnings.

It's a sobering testimony from an SEC insider-turned-whistleblower who is busy blowing the lid off the SEC's incompetence and its inability to stop criminals like Madoff in their tracks. Markopoulos' testimony is frightening for investors who imagined that the Madoff scandal was a flash in the pan and that few other Ponzi schemes and investment frauds are to follow; if what he says about the SEC is true, it's fair to assume that fraud skeletons will tumble out of the closet for months to come. Markopoulos says the SEC is staffed by people who are "undereducated" or "too slow." Also, the whistleblower insists that the SEC is too friendly with the big name companies it is meant to oversee and investigators are afraid of going after these big fish. When Markopoulos attempted to bring Madoff to the attention of the SEC, they insisted that his company was too big for them to take on and that he should be left alone. The results of that negligence are now clear. While elderly retirees have been forced to go back to work, to make ends meet after all their money was wiped out in the scam of the decade, and confidence in the SEC has dropped to new lows, the brain at the center of the scam is "incarcerated" in his luxury penthouse in New York. 

Investment Fraud Lawyers

Filing claims against large, influential Wall Street companies can be an intimidating affair. These are well connected companies that have the contacts and the resources to fight their claims for as long as it takes to avoid paying out damages. That’s why you need the expertise of an investment fraud attorney who has the resources to pursue a claim for as long as it takes to recover the damages you deserve.

If you have lost money in the Bernard Madoff scam, or any other investment fraud, contact an experienced investment fraud attorney at Arnold & Itkin LLP for a free consultation.

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The Securities and Exchange Commission (SEC) has charged a Florida hedge fund manager with fraud, claiming he overstated a total of six funds by approximately $300 million.

Arthur Nadel disappeared on January 14, just one day before he was expected to repay $50 million to investors who had caught on to his scam. He left a suicide note claiming he felt "extreme guilt over taking business actions" that resulted in the loss of his investors' money.   A week after the suicide note was found, Nadel, according to Forbes, called his wife from New Orleans, Louisiana. The call was traced by police officers who are now on the hunt for yet another investment manager who has decamped with investor millions.

According to the SEC complaint, more than a million dollars from two of the hedge funds were transferred to several bank accounts controlled by Nadel. Nadel has been the director and president of Scoop management, and has managed hedge funds, since 1999. He had been managing a total of six funds for about 600 investors.  The hedge fund scam seemed to have been going on for at least a year, during which time he inflated the value of the investment to $300 million. In reality, the value of the funds is closer to $500,000. Nadel also posted returns that the SEC says in its complaint, were blown out of proportion. Two of his hedge funds actually lost money during the reported time and another posted returns that were lower than he reflected. Since his disappearance, at least 45 people have filed complaints about him.

The financial meltdown does have a silver lining – it has begun to quickly expose fraudsters like Bernie Madoff and Arthur Nadel who would, in a healthy economy, have hidden in the woodwork and continued their Ponzi schemes.

Hedge Fund Fraud Lawsuit

There's nothing more frustrating than handing over your hard earned money to an investment broker or manager and learning, all too late, that those juicy digits at the bottom of your returns sheet are actually nowhere near that bloated number, and are quite likely, much lower than you thought. The task of pursuing claims against these advisors and managers is just as frustrating. It helps to rely on an expert hedge fund fraud attorney to make a claim so you can begin recovering your investment.

If you have lost money in a hedge fund investment fraud, contact an experienced investment fraud lawyer at Arnold & Itkin LLP for a free consultation.

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