Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

Ariel Fund Ltd.

Graphviz encountered an error while rendering to format cmapx:
Error: /home/toomreco/drupal-6.22/sites/tcm/files/graphviz/ syntax error in line 10 near '['

Visualization of Madoff Securities "Feeder Funds"

Based upon the recent sharp increase in website visitors and both the public and private feedback, Toomre Capital Markets LLC ("TCM") appears to have become one of the better resources for information regarding the Bernard L. Madoff Investment Securities, LLC fraud scandal. TCM's two principals, Lars Toomre and Aldon Hynes, are geeks at heart and tend to be better with numbers and technology than names and social relationships. Of course, though, the Madoff fraud abounds with so many investors, organizations, charities, lawyers and other entities that have names and relationships that cumulatively quickly become overwhelming.

Hence, Lars and Aldon thought that this website's readership might appreciate some visualization to assist in gaining a better understanding of some of the many principals and relationships that are a part of the Madoff fraud scandal. Most of the labels on the visualization below link back to other content on this website. This first graph (of what may become several) depicts what we acknowledge is incomplete information about the major "feeder funds" that contributed investor dollars to the Bernie Madoff's investment operation:

Visualization of Madoff Securities "Feeder Funds":

TCM would appreciate receiving comments in the section below about information that should be incorporated into the above graph. We will endeavor to update both this post and to produce additional social network graphs about other portions of the complex Madoff fraud social network map. Reader comments and thoughts are not only welcome, but also highly encouraged.

Ezra Merkin and Madoff Feeder Funds Face More Lawsuits

At high noon on Monday January 12th 2009, a Federal magistrate will announce his decision about whether fraudster Bernie Madoff will remain free on bail confined to his penthouse apartment on Manhattan's Upper East Side. The magistrate might instead agree with Federal prosecutors who have argued in briefs filed last week that Bernie Madoff is a "danger to society" and hence he should be remanded until his trial where he almost assuredly will be convicted of at least one criminal act and then probably imprisoned for the remainder of his life.

Remand is an unusual order in most white-criminal cases. However, a fraud of approximately $50 billion and the mailing of "sentimental heirlooms" (in some cases worth more than a million dollars in a single mailing) in violation of court order are also highly unusual. Toomre Capital Markets LLC ("TCM") suspects that public pressure to see "crook" Madoff imprisoned and Madoff's reported decision to cease cooperating with investigators and prosecutors will lead the magistrate to order Bernie Madoff off to jail.

As Bernie Madoff contemplates his possible last few hours of freedom, one of his enablers (and feed fund managers), Ezra Merkin, apparently faces fresh lawsuits seeking as much as $100 million that investors claim he squandered (certainly without their knowledge nor possibly their consent) on Madoff's $50 billion Ponzi scheme. According to The Guardian in the article Hedge Fund Billionaire Sued For Investing in Madoff Scheme written by James Doran, Mr. Merkin, 55, was forced to close his $1.5 billion Gabriel Capital hedge fund in December 2008 after disclosing massive losses from investing in Madoff's business.

As TCM wrote in the post Update on Bernie Madoff Scandal and Feeder Funds last week, Mr. Merkin has already been sued by both New York Law School and New York University ("NYU"). NYU claims its investment was placed with Madoff without permission. "Until 12 December 2008, we had no knowledge that NYU's funds were instead being managed by Bernard Madoff," said an affidavit from NYU filed in New York state supreme court.