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New York - SEC Files Fraud Charges Against Securities Firm in Madoff Case |
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Robert M. Jaffe, the broker who steered many wealthy investors to Bernard Madoffs investment fund through both New York-based Cohmad Securities Corp.
In its complaint, the SEC charged Cohmad co-founder Maurice "Sonny" Cohn, and Cohmad executives Marcia Cohn and Robert Jaffe with fraud. Mr. Jaffe recruited investors from the Palm Beach Country Club to invest with Mr. Madoff, the money manager and mastermind behind a giant Ponzi scheme.
How did one of the largest financial scandals of our time go on for so long without being detected? WSJ reporters offer insight into Bernard Madoff's alleged Ponzi scheme.
Since at least the early 1990s, Cohmad recruited money for Mr. Madoff. Cohmad is a joint operation owned 80% by Mr. Cohn and 20% by Mr. Madoff.
Ms. Cohn is the daughter of Mr. Cohn and president and chief compliance officer of Cohmad. Mr. Jaffe is the son-in-law of Carl Shapiro, the 95-year-old Palm Beach philanthropist who was one of Mr. Madoff's earliest and largest investors.
The SEC alleges that Cohmad filed false reports with regulators to conceal its relationship with the Madoff enterprise.
The SEC also filed civil fraud charges against a Los Angeles-based investment adviser, Stanley Chais, who brought as much as $1 billion to Mr. Madoff operations.
The SEC alleges Mr. Chais lied to many of his clients by failing to disclose that it was Mr. Madoff, rather than himself, who was investing their money. Mr. Chais also had an arrangement with the Madoff firm in which he wouldn't lose money on a single trade. The SEC alleges he sent false account statement to his clients.
The people named in the complaints could not be immediately reached for comment.
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Read Comments (4) — Post Yours »
1
Jun 22, 2009 at 02:39 PM ?>?> Says:
Is this the sonny cohn who gives money to chabad in miami?
2
Jun 22, 2009 at 04:12 PM freilich Says:
a bandeh fun slicksters the whole lot of them
3
Jun 22, 2009 at 03:06 PM Anonymous Says:
Chais funded a lot of left wing anti-Torah causes in the FSU and EY.
4
Jun 23, 2009 at 05:15 AM Madoff Says:
Madoff was president of Yeshiva University economics department. The same YU that has Meachem Genack of OU as Rabbinical adviser. He was complaining about the ethics of the Rubashkins. How about his alma mata? the chillul Hashem made by Madoff is so much bigger!