Toomre Capital Markets LLC

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Madoff Accountants and Steven Mendelow

According to this profile prepared by Forbes, Steven B. Mendelow is a Director of Iconix Brand Group Incorporated, a New York, NY consumer goods company in the Textile – Apparel Footwear & Accessories. According to this profile,

Steven Mendelow has served on our Board of Directors since December 1999. He has been a principal with the accounting firm of Konigsberg Wolf & Co. and its predecessor, which is located in New York, New York, since 1972. Mr. Mendelow was a director of New Retail Concepts, Inc. from 1992 until its merger with us in 1998. He also serves as a director of several privately-held companies. He is a trustee of The Washington Institute for Near East Studies and actively involved with the Starlight Starbright Children's Foundation and the Foundation for Fighting Blindness. He received a Bachelor of Science degree in business administration from Bucknell University in 1964 where he was elected to Delta Mu Delta, the national Business Administration Honor Society.

Konigsberg Wolf & Co. is a mid-size accounting firm in Manhattan and the same firm that employs one Paul J. Konigsberg as its senior tax partner. Paul Konigsberg also happened to sign the 2007 and 2006 Federal Tax From 990s for The Madoff Family Foundation, the same 990s that indicate there was a rather inordinate amount of trading. Toomre Capital Markets LLC ("TCM") wonders just what account and trade information was provided to this accounting firm to prepare these tax returns.

The Konigsberg CPA website lists Steven B. Mendelow as its only Principal and not notably as one of the firm's Partners. Perhaps this is because Steven Mendelow is the same individual who was sanctioned with Frank Avellino and Michael Bienes by the SEC in late 1992 for selling unregistered notes to investors?

Bernie Madoff worked with familiar accountants for many years. Avellino & Bienes worked for his father-in-law's firm before forming their own firm in the 1970s. By 1984, they were spending most of their time raising funds for their investor notes which were passed on to Madoff to manage.

Friehling & Horowitz CPA audited the financial statements of Madoff's investment management business. On page 10 of Harry Markopolos's 2005 document submission to the SEC (in the section labeled Flag #17), he relays that when a team of Big 4 accountants wanted to conduct a performance audit during their planned due diligence, they were told "No, only Madoff's brother-in-law who owns his own accounting firm is allowed to audit performance for reasons of secrecy in order to keep Madoff's proprietary trading strategy secret so that nobody can copy it." That person apparently was the name partner Jerome Horowitz. According to one Neil Friedman of Palm City, Florida, Jerome Horowitz had been outside accountant for Madoff for decades and apparently lost his life savings in the Madoff fraud as well. TCM is unable to confirm how exactly Jerome Horowitz and Bernie Madoff are related by marriage.

The third example is now Konigsberg Wolf & Co. Not only does that firm employ Steven B. Mendelow who at least at one point raised funds for Bernie Madoff. Judy and Paul Konigsberg signed the paid death notice expressing their condolences for the death of Roger Madoff, the son of Peter and Marion Madoff. Clearly, the accountant was "close" to the Madoff family. Toomre Capital Markets LLC wonders whether in recent years Paul Konigsberg and his firm also prepared the tax returns for the Madoff broker dealer entities as well as those for Cohmad Securities after the retirement of Jerome Horowitz.