December 19, 2016
Platinum Partners’ Mark Nordlicht, left, and Uri Landesman.
Clearly, these Jews should be let go because it is an anti-Semitic canard that they would do this. Meaning, of course, that they did nothing. Because anti-Semites are always wrong, given that they are driven by the emotion of hatred.
The founder of the New York-based hedge fund Platinum Partners was arrested Monday as prosecutors unveiled an indictment charging him and six others with participating in an approximately $1 billion fraud.
Mark Nordlicht, Platinum’s founding partner and chief investment officer, was taken into custody at his New Rochelle, New York, home in connection with charges contained in an indictment filed in federal court in Brooklyn.
Others arrested included David Levy, Platinum’s cochief investment officer, and Uri Landesman, the former president of the firm’s signature fund, FBI spokeswoman Adrienne Senatore said.
Platinum is liquidating its hedge funds, two of which have received bankruptcy protection.
The indictment said that since 2012, Nordlicht, Levy, and Landesman schemed to defraud Platinum investors by overvaluing illiquid assets held by its flagship fund.
This caused a “severe liquidity crisis” that Platinum at first tried to remedy through high-interest loans between its funds before selectively paying some investors ahead of others, the indictment said.
Nordlicht, Levy, and Jeffrey Shulse, the former chief executive officer of Platinum’s majority-owned Black Elk Energy Offshore Operations LLC, also defrauded the Texas energy company’s bondholders, the indictment said.
A Platinum spokesman declined to comment. Nordlicht’s lawyer did not immediately respond to a request for comment. Michael Sommer, Levy’s lawyer, said he looked forward to clearing his client’s “good name.”
Lawyers for Shulse and the other defendants could not be immediately identified.
Founded in 2003, Platinum Partners until this year had more than $1.7 billion under management, the indictment said. The flagship fund reported returning profits of more than 8% in 2015 and 7% from January to April 2016, it said.
But this year, a series of investigations tied to Platinum came to a head, leading a Cayman Islands court to place its two main funds into liquidation in August.
In June, Murray Huberfeld, a Platinum associate who prosecutors say was a founder, was charged in Manhattan federal court with orchestrating a bribe to the head of the New York City prison guards’ union, Norman Seabrook, to secure a $20 million investment. Both have pleaded not guilty.
Get this – this firm made a big issue of their “ties to the Jewish community.”
This is from back in July, when their scandal was first uncovered.
For his son’s bar mitzvah in 2008, hedge-fund manager Murray Huberfeld chartered a JetBlue plane and invited hundreds to an oceanfront party in Palm Beach, Fla. An Orthodox pop star known as the “Jewish Elvis” entertained the guests, who Mr. Huberfeld says included investors in his fund.
Intimate ties and fundraising inside a close-knit world of observant Jewish businesspeople in New York, Florida and Israel are central to the $1.25 billion hedge-fund firm Mr. Huberfeld has helped lead, Platinum Partners. Now those ties are being tested as two sets of federal prosecutors as well as securities regulators delve into Platinum’s operations.
Seeking investors, the firm tapped a network of Jewish day schools and wealthy Jewish philanthropists with shared charitable interests. “We were raising a fund,” Mr. Huberfeld said. “These were the people we knew.”
Mr. Huberfeld sometimes took investors on a Gulfstream III jet and hobnobbed with them during a celebration of Talmudic study at MetLife Stadium and New York Knicks games. Most years at Sukkot, an annual fall holiday, he set up shop in the presidential suite at Jerusalem’s five-star David Citadel hotel and hosted a party.
The Sukkot parties weren’t strictly fund-raising events, Mr. Huberfeld said. “Were some of the people investors? Possibly one, two or three. But a handful at best,” he said.
“Murray was known in the Jewish community as someone to have means,” said a friend of his. “If you have a wallet, people perceive you to be a genius.”
The outreach dates to as early as 2005, when Mr. Huberfeld made his credit fund known to fellow philanthropists during a trip to the Vatican to meet the pope. The trip was organized by the Simon Weisenthal Center, a nonprofit focused on anti-Semitism, where Mr. Huberfeld was a board member and donor. At least one person on the trip invested.
“Several people met him through the center, but we had no idea” of the details of the investments, said Rabbi Marvin Hier, the Weisenthal Center’s founder, who led the trip. Mr. Huberfeld resigned from the center’s board last month.
Another investment source was Touro College, a Jewish-oriented New York college whose board of overseers Mr. Huberfeld joined in 2003. It invested endowment funds with Mr. Huberfeld’s fund in 2008 and received its investment back in 2011. Touro’s chief financial officer, Melvin Ness, said there was no correlation between Mr. Huberfeld’s listing on the Board of Overseers and Touro’s investment in the fund.
So, there you have it.
This is a purely anti-Semitic attack on Jews by the FBI.
Or… maybe it’s these Jews that are the anti-Semites, since they were ripping off other Jews…?
I’m not sure.