Tuesday, May 31, 2011

They Didn't Trust Madoff

Bernie Madoff didn't fool everybody. Today's NY Times spotlights two notable examples:

Laura Blank. When she and her husband divorced five years ago, he opted to keep money with Madoff. Laura demanded cash. (Her ex-husband has sued to redo the divorce settlement, an effort that reportedly threatens to shake contract law to its roots.)

Martin Sass. Mr. Sass is not lucky. He started his investment business in 1972, just before the Dow plunged from near its all-time highs. Not lucky, just smart:
Mr. Sass first turned down a chance to get into the Madoff funds in the 1980s when Mr. Madoff, through a representative, refused to tell him how he made his returns. Again, in 2008, the Brooklyn College investment committee considered an investment with Mr. Madoff. Mr. Sass, who was chairman of the investment committee, fought fiercely against the investment and won. 
"Mr. Sass," the Times points out,  "is just not a believer in get-rich-quick deals." Apparently, neither is Laura Blank.

1 comment:

Jim Gust said...

I saw that piece on the divorce this morning. I can't believe that the courts are entertaining the husband's claim, which comes two years after the divorce was final. Had the Madoff holdings collapsed 90 days after the decree that might be one thing, but during the two years the husband took more money out!

Note that the husband is being represented without charge by his employer, Paul, Weiss, Rifkind, Wharton & Garrison.