- As more info comes in regarding the Madeoff scheme, news
from several sources say that Madeoff and his clients were the largest
bank account holders listed on a computer disk leaked by a Swiss bank worker
regarding US persons with hidden Swiss bank accounts.
- As the IRS approached him regarding the repayment of
taxes from his hidden swiss account, Madeoff reportedly became admamant
that his wealth would not be taxed by the US. He also realized that once
the swiss records were exposed that his and his client's wealth were also
within reach of seizure or judgement by a US court regarding past frauds
of him or his clients.
- Realizing that he was be certain to arrested on other
securities and market making fraud issues in the near future, insiders
say that it was at this point he made the decision to just say it was all
lost in trading and move it directly to Israel. Insiders also report that
he was ready to pay the taxes on the money in Israel but was adamant that
taxes in the US would not be paid nor would any of the money be available
for US court judgements in subprime, fraudlent trading and misrepresentation
charges in the future.
- Sources say that most of his and his clients wealth were
gained through issuing subprime mortgages to unqualified borrowers and
then tranching the mortgages into CDOs and circulating the CDOs among US
pension funds including GM, GE, IBM and Califorina's State pension fund.
Some of the wealth was also gotten through investments in Vegas housing
sub divisions and Miami condo projects at the height of the real estate
- Finally, sources say that the wealth from Madeoff's scam
has been fully transfered to Israel and that "most if not all of the
clients have been made aware" that their money is available to them
in Israel and that it was felt that this was a necessary measure in protecting
certain high level clients in the face of a collapse of the USA.
- A European bank executive has said early this morning
that the Banks involved in Madeoff's fund were exposed through loads and
leveraging and that these loans will be repaid in full from Israel.
- All of the charities involved have Israeli offices, so
they also are of an understanding that their money is now available there.
- Sources say that Madeoff has a base in Israel and that
he will offer all clients his services there as a continuem to his services
in New York.
- Speculation has it that he is advising transfer of client's
funds into physical gold holdings in coded safety deposit boxes. This advise
jives with the notion that the money needed to be taken out of the US on
fear of collapsing US dollar and seizure of funds by IRS and courts for
frauds committed during the sub prime bubble.
- The Swiss bank client leak has caused these banks to
no longer be viable avenues for asset concealment.
- Madeoff's clients are not just in the US. He has moved
funds to Israel for clients in Russia, France, England and Swiss in the
scheme in which he is involved.
- Some insiders are saying the amount involved may be closer
to $100 Billion.