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alstry (< 20)

How many Madoff's are lurking out there????



February 02, 2009 – Comments (1)

Businessman and philanthropist Ezri Namvar was once a pillar of the local Iranian Jewish community, a trusted friend to whom many in the community loaned freely and without fear.

Now Namvar and his investment company, Namco Capital Group, Inc., are accused of losing as much as $400 million loaned to him.

For the last three months, lawsuits have been filed and extensive negotiations have been taking place to resolve the hundreds of millions of dollars in disputes between Namvar's creditors and the Brentwood Iranian Jewish businessman. On Dec. 22, two dozen creditors filed an involuntary bankruptcy petition against Namvar and Namco.

The petition follows 17 lawsuits filed against Namvar, Namco, entities owned by Namvar and other Namvar family members alleging breach of contract and contractual fraud in a case that attorneys estimate involves 300 to 400 creditors, the majority of whom are Iranian Jews.

In a leveraged world, deleveraging takes no prisoners.  These kinds of stories will likely be more common than many currently anticipate.  But thank goodness there are still guys like this left:

The inhabitant of this office is a balding, 64-year-old man with a tidy, silver mustache and a generous smile. He wears Southwest Florida-made alligator boots and belt, is well-dressed in a white shirt (no tie) and from the looks of it has had a little trouble saying no at the dinner table.

And one more thing: it is absolutely impossible to gauge the magnitude of business Gerard A. McHale Jr., P.A., does there.

Working out of an office in the Foxworth Building on Jackson Street, he is regarded as one of the nation's foremost experts on Ponzi schemes, such as the one perpetrated by Bernie Madoff who has admitted to stealing up to $50 billion of his clients' money, according to investigators.

McHale is not involved in the Madoff case, but over the years he's worked his share of infamous cases, including one in Orlando where boy-band creator Lou Pearlman stole hundreds of millions from investors.

State and federal judges appoint him to oversee cases in which scammers and schemers rip people off. His mandate: Retrieve at least some of the losses.

Petters, Madoff, Perlman, Namvar, Nadel each involving hundreds of millions into the tens of billions.  After a while, the numbers add up.  There is much pain left behind for those who were victims.  This process will end one day....hopefully sooner than later.

1 Comments – Post Your Own

#1) On February 03, 2009 at 1:17 AM, alstry (< 20) wrote:

20 MILLION....You are FIRED!!!!!!!

From tonight's WSJ:

SHUANGYAO, China -- The global slowdown is taking a toll on China, claiming the jobs of an estimated 20 million migrant workers and dimming their prospects as they set out in search of work after the New Year holiday.

The year ahead appears no more promising: Officials forecast the number of migrants looking for jobs will reach at least 25 million.

Chen Xiwen, who heads the Chinese Communist Party's office on rural policy, said Monday that about 20 million migrant workers -- nearly a sixth of the total -- lost their jobs in recent months. That number, the first official estimate, underscores the government's challenge in maintaining employment and avoiding unrest.

"For those migrant workers who have lost their jobs, what are they going to do for income when they return to their village? How are they going to manage? This is a new factor affecting social stability this year," Mr. Chen said at a news conference in Beijing.

The government estimates the total population of rural migrants -- those working outside their home village -- at approximately 130 million people.

China doesn't conduct regular surveys to gauge nationwide unemployment; Mr. Chen's estimate of 20 million job losses covered only migrant workers. He said his figure was based on an official survey in January of migrant workers in 15 provinces, which showed 15.3% of respondents had lost their jobs or been unable to find work. He said the total number of migrants seeking work this year will likely be at least 25 million, since usually six million to seven million people join the migrant work force each year.

And people say America has problems?????

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