The Liquidator
September 27, 2009 5:00 PM
The man in charge of recovering assets from Bernard Madoff says there is about $18 billion still out there that he hopes to recover for victims of the scam. But it won't be easy. Morley Safer reports.
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See all 33 CommentsA Special Prosecutor (opposed by Kishel) would put an end to such corruption.
A Clawback (also opposed by Kishel) would make billions available to creditors.
Kishel this month dispensed creditors? money to Petters' lawyers/advisors as follows:
Lindquist & Vennum $1,194,617.56
Avidity Partners $156,474.46
Neal, Gerber, Eisenberg $274,739.73
C&A Law $15,700.00
KPMG $113,205.00
Moss Barnett $8251.00
Wulsin Murphy $6495.00
Faegre & Benson $162,496.50
$9420.75
Baker & McKenzie $11,277.18
Sutherland Asbill $15,287.28
$3,722.44
Hastings, Janofsky & Walker $797,090.74
For a grand total this month of $2,768,778.14
Is it any wonder why the real victims (the creditors) will never see a dime?
Creditors have two alternatives to keep them from eternal financial damnation; first, the appointment of a Special Prosecutor reporting directly to USAG Holder and a contemporaneous claw back described as follows:
A complete sources and uses of capital must be prepared; that is, from 1995 on with a threshold amount of $50. For definitional purposes, ?Petters et al? is defined as Thomas Petters personally, corporately, and /or in trust for others, regardless of venue. Those subject to this claw back order should consist of Petters et al, all individuals/entities (?Parties et al?), all of whom should divulge all amounts paid or received and when such payments were made or received, Parties et al and Petters et al should also be compelled to produce a full inventory of all real and personal property (including any liens or encumbrances thereon) held by them (solely or jointly with others) personally or corporately and when such property was acquired or sold, all credit card and bank statements (US domiciled and offshore), all check images, all wire transfers, all state and federal tax returns, all maintenance and utility bills, all travel and lodging expenses and any and all business accounting ledgers. Petters and Parties et al subject to this claw back order would include all members of the Petters family, his past and current associates, his or their counsel, all prior investors of Petters who received funds in excess of their contributed capital, all politicians who accepted donations from Petters et al now or past in office, all charitable entities paid by Petters et al, all existing or past involved officers of the state and federal courts (any worldwide venue) who were ever involved with Petters, consisting at a minimum of all judges, magistrates, trustees, receivers, and lawyers within or outside of Minnesota.
This information has already been collected by forensic experts at PriceWaterhouseCoopers and FTI but receiver Doug Kelley will not disclose any such forensic discoveries; ergo, the urgent need for both a special prosecutor and a ?claw back?.
Petters victims have been paid $0 so far, with the courts now paying Petters, his cronies, their lawyers now over $2 million per month and creditors have no say in the matter.
Petters is still in control and will receive at least $3.65 billion back from his lawyers in laundered cash after he is released.
Because the media failed to report the whole story, Petters will get to keep every dime he swindled.
In the final analysis, crime has indeed paid for Petters.
Picard/Sheehan are doing a ?follow the money? investigation as part of a formalized ?clawback? which is allowed under the law. The intent here is to return monies swindled by Madoff to the creditors in this multi-billion Ponzi scheme.
The Picard/Sheehan counterparts here in Minnesota are Receiver Doug Kelley and trustee John Stoebner who are doing a ?follow the money? investigation with a slightly different twist; that is, to locate, liquidate, and return all liquidated cash back to Petters, his family, his cronies, their lawyers, Kelley, Stoebner, and the many other officers of the courts and the politicians Petters has paid so they could be there for Petters when he needed them. An earlier comment posted on this website revealed that Petters called a US Senator the day Petters was arrested demanding that he be released. This particular Senator knowingly took $75,000 of Ponzi monies from Petters to get elected to the United States Senate.
It actually gets worse: Receiver Doug Kelley has gone consistently on the record asserting that ?creditors come last? which means that he will pay himself, Petters, all of their respective cronies, all of their lawyers (the lawyers alone are being paid by Kelley at a rate of over $1 million/month) and all the judges and politicians Petters "bought" over two decades to "look the other way".
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Difference is - you are now (purportedly) being dealt the final blow in a "legal" mannerism.
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The Reality is - you are being screwed - yet again - by the good ole boys club.
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Take the above mentioned Petters case. Doug Kelley (a former US Attorney) was working for Petters Group Worldwide (PGW) when the FBI raided Petters companies. Doug Kelley told the press that the creditors issues come last and the company mainstay is the priority.
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THEN
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Chicago appointed a Receiver due to the Lancelot issues.
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Whereby MN responded and illicity appointed Doug Kelley as the Federal Receiver - (basically saying Petters companies are in our good ole boys back yard and you must stay away).
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It was a huge conflict of interest and illegal to appoint Doug Kelley as Receiver - so the Magistrate Justice (Montgomery) simply created her own Law and stipulated Doug Kelley had Judicial Immunity.
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Then - as if such were candy from a story - Judge Montgomery gave the Frank Vennes Receiver (Hansen) Judicial Immunity as well. Frank Vennes was never arrested or charged - so under what Law anywhere can there be legal framework for a Receiver?
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NONE
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Yet Doug Kelley and Hansen with their annointed have already rec'd over $10 million in fees to sell Petters assets in a sham process (such as Polaroid being sold to the 2nd highest bidder)
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I am Laser Haas - a/k/a Laser the Liquidator - the Court appointed in eToys and over 1000 other liquidations over $2 billion in assets - so I am amply qualified to know a sham sale process when I see one.
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The American public has no idea how it is a fact that the US Trustee's office is a misnomer and that police force should be disbanded. The Bankruptcy Courts have become a big biz machine (just ask www.lopucki.com UCLA Law Prof who has it Right)
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Federal Receiverships and State Court Receivers are the worst - for they are Only suppose to exist once a Federal or State agency wins - through due process - such as IRS, SEC or FDIC - in State through a bank lien that was legally perfected based on UCC1 Law.
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Now in Petters, Dreier and other cases - a Receiver is being appointed once a charge occurs and the assets are being sold prior to conviction or guilty pleas.
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Such is a travesty of Justice and a formula for tyranny and corruption most high!
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As is documented by the Petters case.
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Exactly where does one find the legal basis for Judicial Immunity to be given out ad hoc?
How many in Minnesota and even Washington are still protecting Petters and why?
No one is protecting Madoff in New York, and no one in authority in Minnesota or Washington will answer these questions because the evidence shows that they all took Ponzi money from Petters to "look the other way". One of them, a US Senator, even got elected with money stolen by Petters, reported by the Minneapolis Star Tribune. This Senator was the first person Petters called the day of his arrest in September, 2008.
Will any of this ever be lawfully adjudicated or, paraphrasing Lou Dobbs, is it asking too much to expect honor in government?
HOW MANY IN MINNESOTA AND EVEN WASHINGTON ARE STILL PROTECTING PETTERS AND WHY? NOONE IS PROTECTING MADOFF IN NEW YORK, AND NOONE IN AUTHORITY IN MINNESOTA OR WASHINGTON WILL ANSWER THESE QUESTIONS BECAUSE THE EVIDENCE SHOWS THAT THEY ALL TOOK PONZI MONEY FROM PETTERS TO "LOOK THE OTHER WAY".
This information has already been collected by forensic experts at PriceWaterhouseCoopers and FTI but receiver Doug Kelley will not disclose any such forensic discoveries; ergo, the urgent need for a ?claw back?.
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