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Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Friday, November 3, 2006

On November 13, Torontonians will be heading to the polls to vote for their ward’s councillor and for mayor. Among Toronto’s ridings is Don Valley West (Ward 25). Three candidates responded to Wikinews’ requests for an interview. This ward’s candidates include John Blair, Robertson Boyle, Tony Dickins, Cliff Jenkins (incumbent), and Peter Kapsalis.

For more information on the election, read Toronto municipal election, 2006.

Monday, October 11, 2010

Wikinews interviewed author Amy Scobee about her book Scientology – Abuse at the Top, and asked her about her experiences working as an executive within the organization. Scobee joined the organization at age 14, and worked at Scientology’s international management headquarters for several years before leaving in 2005. She served as a Scientology executive in multiple high-ranking positions, working out of the international headquarters of Scientology known as “Gold Base”, located in Gilman Hot Springs near Hemet, California.

Tuesday, May 2, 2017

A hacker, or group of hackers, operating under the alias of The Dark Overlord uploaded ten episodes of Netflix’s web TV series Orange is the New Black on Friday and Saturday on The Pirate Bay after they said the online streaming service failed to meet their demands. Netflix had planned to release the season on June 9.

According to The New York Times, the unreleased content from the upcoming fifth season of Orange is the New Black was likely stolen from a postproduction company Larson Studios, based in Los Angeles. Netflix in a statement said, “A production vendor used by several major TV studios had its security compromised and the appropriate law enforcement authorities are involved.” In a tweet on Saturday, the hacker said, “Who is next on the list? FOX, IFC, NAT GEO, and ABC. Oh, what fun we’re all going to have. We’re not playing any games anymore.”

The hacker tweeted about uploading the first episode on The Pirate Bay on Saturday saying, “Let’s try to be a bit more direct, Netflix”. The hacker allegedly demanded an amount of money which they publicly described as “modest”, from Netflix for not releasing the episodes prematurely. The New York Times reported that the final three episodes were not pirated since the security breach occurred before the postproduction studio was handed those episodes. In January, the hacker erased the data from the servers of a Muncie-based charity called Little Red Door Cancer Services of East Central Indiana demanding 50 bitcoins to restore their data, which was estimated to be about US$43,000.

The Federal Bureau of Investigation is reportedly investigating this cyber crime. Netflix has more than 100 million subscribers, CEO Reed Hastings announced recently. Variety noted that Netfilx’s shares experienced a 0.57% loss on the day the first episode was uploaded by the hacker.

Tuesday, April 10, 2018

On Saturday, the Trump Tower, in Midtown, New York City, caught fire shortly before 18:00 EST (2200 UTC) on the 50th floor, claiming the life of a 67-year-old resident, Todd Brassner, who lived in apartment 50C. All other residents were evacuated without incident. During the fire, six firefighters received non-life-threatening burns and other minor injuries. Neither US President Donald Trump nor the First Family were in the building at the time of the fire.

The high-end Fifth Avenue address is the personal residence of President Donald Trump, whose family occupies the top three stories of the 58-story building. The US Secret Service maintains a constant security presence inside the building with the New York City Police Department guarding a hard perimeter, intended to stop vehicular attacks, and a soft perimeter, intended for on-foot attacks.

The four-alarm fire required 200 firemen, extra police, and paramedics. At 20:00 EST (0000 UTC Sunday), the New York City Fire Department (FDNY) declared the fire was under control. Trump tweeted, “Firemen (and women) did a great job. THANK YOU!” This is the second fire at Trump Tower since the election; previously on January 8, a fire was caused by an electrical malfunction in a cooling tower on the roof. Three FDNY firefighters received minor injuries, and all residents and office workers evacuated without incident on that occasion.

Trump Tower provides a number of unique problems never before encountered by the Secret Service. Never has a US President’s personal residence been inside a skyscraper or in a densely populated area like Midtown. The security measures have disrupted vehicular and pedestrian traffic requiring time consuming detours and delaying emergency response.

The New York Fire Code did not mandate sprinkler systems at the time Trump Tower was built in 1983, which might have reduced the size and severity of the fire had they been present. The 50th-floor apartment was, according to FDNY Fire Commissioner Daniel Nigro, “[T]he apartment was virtually, entirely on fire.” The Secret Service monitors all the fire alarms in the building but it took time to find the source of the thick black smoke emanating from the fire. Secret Service Agents escorted the firefighters throughout the building, including the Trump residence.

Brassner, the sole casualty, was unconscious when firefighters pulled him out of apartment 50C. He was transported to Mount Sinai Roosevelt Hospital. Originally listed as critical, he was pronounced dead sometime during the night. Brassner, guitar collector, was acquainted with artist Andy Warhol and was acknowledged in Warhol’s 1989 autobiography, The Andy Warhol Diaries. The cause of the fire is unknown, with investigations into Brassner’s death and the emergency response ongoing. Currently, the Secret Service leads the investigation.