How Allen Stanford fell

Alex Dalmady has an admirably clear explanation of how the financial empire of Allen Stanford crumbled into nothingness.

Basically, they were booking false profits into what they called Tier 3 and hoping a market surge would allow them to pay back investors. This may actually have worked during surging stock market years, but when the crash came, followed by Madoff’s arrest, the withdrawals increased and soon there was nothing left.

you should understand what Tier 3 contained: a few little somethings that were awful investments, some “anythings” that were definitely ill-advised, but mainly…a whole lot of “nothing”. But definitely NOT what was advertised in the financial statements.

It didn’t start as a ponzi. It was probably never really meant to be a ponzi, but it became one for all practical purposes.


    Foley & Lardner partner Patricia J. (Trish) Lane represented FISERV, sue Foley, read on.
    Investors who have been burned in these scams should start to seek redress from the lawyers who were involved with these scams. I personally have been trying to notify regulators and authorities of a ONE TRILLION DOLLAR scam that is putting states like New York and Florida at huge risk, as well as, companies like Intel, Lockheed, SGI and IBM. The states and companies involved in the fraud fail to acknowledge the risk exposing shareholders and citizens to impending liabilities. Investigators, courts and federal agents ignoring the crimes and evidence, including a car-bombing attempt on my life. I know how Harry Markopolos felt trying to expose Madoff in a world without regulation.
    Did I hear Proskauer Rose is involved in Madoff (involved many clients too) and acted as Allen Stanford’s attorney. Investors who lost money in these scams should start looking at the law firm Proskauer’s assets for recovery. First, Proskauer partner Gregg Mashberg claims Madoff is a financial 9/11 for their clients, if they directed you to Madoff sue them. Then, Proskauer partner Thomas Sjoblom former enforcement dude for SEC and Allen Stanford attorney, declares PARTY IS OVER to Stanford employees and advises them to PRAY, this two days before SEC hearings. Then at hearings, he lies with Holt to SEC saying she only prepared with him but fails to mention Miami meeting at airport hanger. Then Sjoblom resigns after SEC begins investigation and sends note to SEC disaffirming all statements made by him and Proskauer, his butt on fire. If you were burned in Stanford sue Proskauer.
    Proskauer Rose and Foley & Lardner are also in a TRILLION dollar FEDERAL LAWSUIT legally related to a WHISTLEBLOWER CASE also in FEDERAL COURT. Marc S. Dreier, brought in through Raymond A. Joao of Meltzer Lippe after putting 90+ patents of mine in his own name, is also a defendant in the Federal Case.
    The Trillion Dollar suit according to Judge Shira Scheindlin is one of PATENT THEFT, MURDER & A CAR BOMBING. For graphics on the car bombing visit
    The Federal Court cases
    United States Court of Appeals for the Second Circuit Docket 08-4873-cv – Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al. – TRILLION DOLLAR LAWSUIT
    Cases @ US District Court – Southern District NY
    (07cv09599) Anderson v The State of New York, et al. – WHISTLEBLOWER LAWSUIT
    (07cv11196) Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al.
    (07cv11612) Esposito v The State of New York, et al.,
    (08cv00526) Capogrosso v New York State Commission on Judicial Conduct, et al.,
    (08cv02391) McKeown v The State of New York, et al.,
    (08cv02852) Galison v The State of New York, et al.,
    (08cv03305) Carvel v The State of New York, et al., and,
    (08cv4053) Gizella Weisshaus v The State of New York, et al.
    (08cv4438) Suzanne McCormick v The State of New York, et al.
    ( ) John L. Petrec-Tolino v. The State of New York

  • What have we become? What shall we tell our children of what we have done
    to their futures. For shame on our leaders as the homeless pile up from
    their scam after scam. Anyone for a Pitchfork Revolution?

    21 March 2009
    This article by Wayne Madsen (scroll down to see it) offers a plausible
    hypothesis why Madoff’s conviction is the end of the line, and prosecutors
    aren’t lookig for co-conspirators. According to Madsen, Madoff’s investors
    were not so dumb, and what Madoff was really collecting money for was a vast
    floating casino project in Manhattan, with new transit lines thrown in for
    extra $$$. The “Cornerstone Project” was to have absorbed Madoff’s cash and
    rewarded him richly, before last September’s crash put the project in

    I won’t try to summarize the intrigue that Madsen describes, aside from
    revealing the “cornerstone” of his charge: Judge Denny Chin, who has
    accepted Madoff’s guilty plea and will be in charge of sentencing him, is a
    major investor in the Cornerstone project.

    Josh Mitteldorf /

    Madoff took fall for New York’s Richest and most powerful politicians

    by Wayne Madsen; March 16, 2009,

    A reliable source who is close to both the U.S. Court for the Southern
    District of New York and the U.S. Attorney’s Office for the Southern
    District of New York’s Organized Crime Unit tells WMR that Ponzi scammer
    Bernard Madoff, who was remanded to prison last week by U.S. Judge Denny
    Chin, took a “fall” for some of New York’s most powerful and wealthiest
    politicians who were using Madoff’s private investment scheme as a “front”
    to assist in a major real estate redevelopment plan for New York that stood,
    and still stand, to make the conspirators super-rich.

    Although the federal prosecutors in the case against Madoff claim the former
    chairman of NASDAQ and chief of Madoff Investment Securities refused to
    cooperate in their criminal conspiracy investigation of Madoff, the
    prosecutors have no intention of expanding the case beyond Madoff and
    possibly some of his family members.

    WMR has been informed by a well-informed New York legal source that Madoff
    is a second-tier player in a major real estate development plan that used
    some of the money skimmed off by Madoff’s Ponzi scheme to fund some of the
    real estate development projects. WMR has been told that another second-tier
    player in the real estate scheme is none other than Madoff’s trial judge,

    The judge, WMR is told, particularly represents the real estate development
    interests of Tishman Speyer, the real estate firm that owns the Chrysler
    Building, Rockefeller Center, and the MetLife Building. Chin has been amply
    rewarded for his “services” with a luxurious penthouse for him and his wife
    in Battery Park City in lower Manhattan. WMR has also been told that Chin
    has been responsible for destroying important email evidence that points to
    the involvement of New York’s top political leadership in the Cornerstones

    Madoff, another second-tier player in the Cornerstones, also stood to gain
    financially from the proect as a major investor in real estate in his own

    A branch of the Tishman family, Tishman Construction Company, specializes in
    the building and operation of entertainment complexes, including casinos
    projects in Las Vegas and Atlantic City. Last July, Tishman and Revel Hotel
    and Casino in Atlantic City executives were killed in a plane crash in
    Owatonna, Minnesota, 60 miles south of Minneapolis.

    Chin and Madoff were linchpins in a major redevelopment scheme for New York
    called the “Cornerstones.” There are four Cornerstone” redevelopment
    projects planned for Manhattan that will see the building of major
    entertainment and gambling casino operations in the city with high-speed
    rail links between them and to other parts of the city. The four
    “Cornerstones” are the new World Trade Center site surrounding the future
    Freedom Tower, Grand Central Station/Times Square, Penn Station, and a
    floating casino complex on the East River near the Brooklyn Bridge.

    WMR has been told that Chin is closely allied in the mega-billion dollar
    real estate development scheme with former Attorney General Michael Mukasey,
    who once served on the same southern district of Manhattan federal circuit
    with Chin. WMR is told that Chin and Mukasey represented the interests of
    New York’s “Landlord Lobby” and “West Side Lobby” in major cases involving
    real estate plans for New York City. Chin and Mukasey failed to recuse
    themselves from cases in which they had clear conflicts-of-interest, WMR was
    informed. Mukasey’s son Marc, an attorney for the law firm Bracewell
    Giuliani, is representing Frank DiPasquale, Madoff’s chief financial
    officer. Mukasey and Giuliani are also close friends and business associates
    and both worked for the same law firm Patterson Belknap.

    Although the Cornerstones projects are supported by New York interests who
    represent the middle class and poor, mainly due to the fact that it will
    create mixed-income housing units and provide money for public education and
    the city’s increasingly deteriorating public schools, critics point out that
    the project has been stalled because major players who used Madoff to
    launder money in New York and abroad for the entertainment and casino
    operations skimmed some of the proceeds for themselves and have essentially
    stalled the project. Critics also point out that the planned Freedom Tower
    complex at the old World Trade Center site has been delayed for seven years
    due to money, in addition to basic construction materials like concrete and
    steel, have been siphoned off for other more immediate construction

    In addition, although the Cornerstones is slated to improve public
    education, a number of public schools have been sold off for private
    development as part of the overall scheme.

    Former Assistant U.S. Attorney in the southern district of Manhattan Chad
    Vignola, who also worked for Mayor Giuliani on the city’s Waste Management
    Commission and resigned from the city’s Department of Education amid a
    nepotism scandal, is reportedly very much involved with the Cornerstones
    project and is close to both Giuliani and Chin in ensuring the project’s
    completion. Vignola resigned as chief counsel for New York City’s Education
    Commissioner Joel Klein, a Bloomberg appointee who takes his orders from the
    Giuliani-Bloomberg “mafia” in New York, after Deputy Education Commissioner
    Diana Lam resigned after she tried to get her husband hired by the Education
    Department. The sale of public school property to private real estate
    developers has reportedly been at the center of Klein’s tenure, along with
    the creation of charter schools at the expense of deteriorating schools in
    poorer area of the city.

    Two area state governors who posed potential problems for the Cornerstones
    project were dispatched quickly through sex scandals.

    Tishman Construction received the consulting contract from the state of New
    Jersey for the Xanadu entertainment complex at the Meadowlands sports
    complex in East Rutherford, New Jersey during the administration of Governor
    Jim McGreevey. Tishman had hired McGreevey’s Israeli intelligence “honey
    trap” Golan Cipel as a consultant at a salary of $7500 a month after Cipel
    left other jobs arranged by McGreevey, including one as New Jersey homeland
    security chief adviser. McGreevey resigned as governor after his affair with
    Cipel became public. The new transportation hub at the World Trade Center
    Cornerstones entertainment center will link that complex with the Xanadu
    complex in New Jersey via the PATH train operated by the Port Authority of
    New York and New Jersey.

    New York’s Governor, former Attorney General Eliot Spitzer, was a dogged
    pursuer of fraud on Wall Street and those pursuits posed a severe problem
    for the Cornerstones money laundering operation. Spitzer was forced to
    resign as governor after he was identified as a customer of the Emperors
    Club VIP prostitution service run by ex-Israeli government official Mark,
    aka “Michael,” Brener. Details of the probe of Spitzer, known as “Client 9”
    in federal investigation documents, were leaked by federal investigators
    working out of the U.S. Attorneys office for southern Manhattan, which has
    been described as a hub for organized criminal activity even though it
    comprises the “Organized Crime” investigation unit.

    The Barack Obama administration’s interest in the mega-bucks real estate
    boondoggle in New York is heightened by the fact that Klein was on the short
    list to be Obama’s Secretary of Education. In fact, WMR has been told by a
    knowledgeable source that the Cornerstones project and its receipt of

    stimulus money is a major priority for both Obama and his chief of staff
    Rahm Emanuel, along with New York Democratic Senator Charles Schumer, a
    major recipient of campaign contributions from Madoff and his well-heeled

    A veteran of the corrupt U.S. Attorneys office for southern Manhattan is the
    U.S. Attorney for the Northern District of Illinois Patrick Fitzgerald. His
    pursuit of Rod Blagojevich, who was forced to resign as Governor of
    Illinois, parallels the campaign by his old New York federal colleagues
    against Spitzer. Chicago billionaire real estate developer Sam Zell, the
    owner of the Tribune Company that owns Chicago’s Wrigley Field, is
    interested in selling the lucrative baseball park, which sits within the
    Fifth congressional district once held by Blagojevich and subsequently by
    Emanuel. Blagojevich was seen as a possible problem if the ball park were
    sold for the development of a Cornerstones-like mega entertainment and
    casino center.

    With McGreevey, Spitzer, and Blagojevich out of the picture, the
    Russian-Israeli mob-connected entertainment and casino interests now have a
    virtual free hand in New York and Chicago, with a wink and a nod from
    Emanuel who occupies the powerful White House position as Chief of Staff and
    who can influence the dispersal of federal stimulus money to assist in the
    various redevelopment schemes. With Spitzer gone and an increasingly
    unpopular David Paterson as Governor, Bloomberg is given a good chance of
    unseating Paterson and ensuring that Albany supports the Cornerstones plan
    for New York City.

    The billions of dollars that the Cornerstones players had Madoff skim in his
    Ponzi scheme that are sitting in off-shore locations, including Israel, the
    Cayman Islands, Belize, and other financial centers, was to have been
    re-introduced into New York to fund the Cornerstones development projects.
    But the fact that Madoff was caught in the scheme and ran the risk of
    identifying and testifying against his “handlers” has put the entire
    Cornerstones project risk, WMR has been told.

    The Madoff money that was “parked” in Israel, with Russian-Israeli mobsters
    earning interest and able to use the funds for other financial “leverag,”
    was to be pumped back into New York for the Russian-Israeli mob to make
    billions from the Cornerstones casino/entertainment complexes in Manhattan.
    Bloomberg was being counted on to “deliver” the project but now that Madoff
    was caught the project has been further delayed and silent “investors” in
    the project are growing restless.

    Madoff had guaranteed the major Cornerstones developers that there would be
    “no release” of information on the source of funding for the project and
    former New York Mayor Rudolph Giuliani guaranteed that Madoff’s “account”
    would be protected from federal, state, and local law enforcement scrutiny.

    WMR was told by our legal source in New York that Madoff and Chin have their
    “strings pulled” by New York Mayor Michael Bloomberg, a “shill” for Giuliani
    who plans to run for Governor of New York to take care that New York City’s
    redevelopment project does not face any problems in Albany; former New York
    Governor Mario Cuomo, who is shilling for the financial interests of his son
    Andrew Cuomo, New York’s Attorney General (Giuliani jumped the GOP ship in
    1994 to endorse Democrat Mario Cuomo for Governor); and former Senator
    Alphonse D’Amato, Giuliani’s political enemy who, nevertheless, hopes to
    capitalize on the Cornerstones project.

    In fact, WMR was told that the federal stimulus package for New York City is
    almost entirely slated for rail and rail station projects to support the
    Cornerstones. These projects include a hookup between the Second Avenue
    subway and the Q Street subway that will also connect to a high-speed rail
    link from the East River floating casino to Coney Island; a new rail tunnel
    linking the Grand Central Station/Times Square casino/entertainment complex
    with the World Trade Center complex; and enhanced rail links between the
    Cornerstones and New Jersey. One indication that the federal stimulus money
    is geared for new rail stations is the fact that the rail station for the
    new Yankee Stadium is still not completed just weeks prior to the opening of
    the new stadium.

    One source familiar with Cornerstones emphasized the pressure on Bloomberg
    to deliver on the project. The source revealed that if the Madoff fiasco is
    any indication of Bloomberg’s team’s performance, the project is in real
    trouble. The source added that Bloomberg will pay dearly politically and
    financially if he fails “to deliver the goods” on the Cornerstones.

    With Madoff going to federal prison without a jury trial and no conspiracy
    charges being brought, the investors in Cornerstone hope their mega-project
    can be saved with little public notice. It is also certain that based on the
    massive returns that were expected from Cornerstones, some of Madoff’s
    closest investors, who are now complaining about not knowing about his Ponzi
    scheme, likely knew very well that if the project came off without a hitch,
    they stood to gain on their original investments.

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