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Archive for October, 2009

Madoff’s “North Pole”

An amended complaint filed by Burlingame-based law firm Cotchett, Pitre & McCarthy against Bernie Madoff and his alleged co-conspirators in a massive Ponzi scheme contains some salacious new details about the professional atmosphere Madoff cultivated in the early years of BMIS, including allegations of drug use and prostitution:

Behind the Facade, Madoff and BMIS Had A Dark Side

83. Behind this facade was a different side of Madoff and BMIS. Starting in 1975, Madoff began sending a long-time employee and office messenger to obtain drugs for himself and the company who worked with another individual who became a supplier to BMIS. These two men were described as
street tough men from Harlem “who were not to be messed with.” Their job was to get drugs and bring them to the office for use at BMIS. The employees in the office were well known and everyone knew, including some special investors. Drug use in the office was described as rampant and likened the office to the “North Pole” in reference to the cocaine use. Eventually the main employee supplier was fired for his drug abuse when cocaine and other undisclosed drugs were found in his desk in 2003. Madoff worried that it might bring in drug prosecutors who might uncover the big scam.

84. In regards to the diversion-filled office environment, employees described the wild office parties sans spouses. There were topless entertainers wearing only “G-string” underwear serving as waitresses, and a culture of sexual deviance existed in the office. The employees had late night affairs in exciting places – such as their boss’ sofa “with whomever they could find.” Employees described it as a wild, fast-talking, drug-using office culture.

85. Madoff also maintained a list of his favorite attractive female masseuses in his personal telephone book. Madoff’s affinity for escorts, masseuses, and attractive female employees was well known in the office culture, and certain feeders were allowed to participate in the conduct. A significant amount of the money stolen from investors went towards these lavish indulgences as well as other expenses for his employees, family and favorite feeders.

Among the other potential revelations in the complaint, which runs to nearly 300 pages, is that Madoff may have begun his Ponzi scheme as early as the the 1960s, not the 1990s, as he has claimed.

One of the victims of Madoff’s scheme who is being represented by Cotchett, Pitre & McCarthy is a retired Foster City teacher.

Posted on Tuesday, October 20th, 2009
Under: Burlingame, Crime, Foster City, Joe Cotchett | No Comments »

Speier holds forum with Filipino community

Rep. Jackie Speier will hold a forum with Filipino community members Saturday morning in South San Francisco. The event will run from 11 a.m. to 12:30 p.m. in the Joseph A. Fernekes Recreation Building at 781 Tennis Drive (inside Orange Park).
Speier will talk about recent legislation and events in Washington, and the Red Cross will provide an update on relief efforts in the Philippines.
On Wednesday, the House passed a Speier-authored resolution expressing its sympathies for residents of the Philippines in the aftermath of recent typhoons.
“The historical and cultural links between the Philippines and the United States run deeper than any flood waters,” Speier said in her speech on the House floor. “I urge my colleagues to support House Resolution 800 to show our friends, the good people of the Philippines, that — as they stood with us in World War II — the American people stand with them at this, their time of greatest need.”

Posted on Friday, October 16th, 2009
Under: Democratic Party, Jackie Speier, South San Francisco | No Comments »