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Vienna - Orthodox Woman Banker Denies Madoff Kickbacks in Austria |
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Mrs Sonja Kohn, chairman of the Vienna-based Bank Medici - with manager Moe Cohen
Prosecutors from all three investigations believe Mr. Madoff paid kickbacks to Sonja Kohn while she was chairwoman of Austria's Bank Medici AG via separate companies she controlled, according to affidavits detailing the investigations and hundreds of documents collected by Austrian prosecutors that were reviewed by The Wall Street Journal.
In exchange for the kickbacks, prosecutors allege, Ms. Kohn turned three Bank Medici funds into "feeder funds" that supplied Mr. Madoff with an estimated $3.5 billion from European investors.
U.S. and U.K. prosecutors filed the affidavits to request documents, bank records and witness statements from their Austrian counterparts to further their own investigations.
The three investigations, which are separate and at an early stage, offer a picture of how Mr. Madoff may have persuaded fund managers abroad to find investors for Mr. Madoff. The investigations don't claim that Ms. Kohn knew the nature of Mr. Madoff's $65 billion Ponzi scheme.
Ms. Kohn hasn't been charged with wrongdoing.
"I am actually the greatest Madoff victim. It is a tragedy for my family, my company and for me personally," Ms. Kohn said by phone on Wednesday. She declined to discuss details of the allegations against her.
Ms. Kohn, a 60-year-old Viennese former Wall Street penny-stock broker, has repeatedly denied prior knowledge of Mr. Madoff's $65 billion fraud or any wrongdoing. A judge sentenced Mr. Madoff to 150 years in prison on Monday.
A spokeswoman for Bank Medici said neither Ms. Kohn nor the bank had received kickbacks.
According to an April affidavit from the Justice Department filed with Vienna prosecutors, Ms. Kohn is under investigation in the U.S. for potential criminal charges of conspiracy, fraud and wire fraud in connection with the alleged kickbacks.
The fraud charges carry maximum jail terms of 20 years each, while conspiracy carries a maximum five-year term, according to the affidavit.
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Read Comments (16) — Post Yours »
1
Jul 03, 2009 at 10:55 AM curious??? Says:
medici?...is that heimisch or upscale?
2
Jul 03, 2009 at 10:40 AM Anonymous Says:
why isnt she a victim and entitled to compensation?
to me it sounds like she worked hard made good connections, made good money, and had the wool over her eyes and carpet pulled from under her feet.
if anything she falls into mekin and others in category.
these were people who when things were good no one asked questions... they were connected and they to trusted madoff.
are we going to throw the book at them if they erred a bit here or there? dont we all make mistakes in our lives.
none of these money managers had reason to suspect they were bein robbed... and we have to be fools to think they were going to risk billions to make millions..
3
Jul 03, 2009 at 12:02 PM Meir Says:
Mrs kohn came across and presented herself as somone who knows how to invest and knows what she is doing . Fact is she didnt know what she is doing , she trusted this ganoff blindly didnt do her due diligens didnt investigate if the investments are sound... So she is guilty of being a fools messenger and misrepresenting her clients . I lost money ,but you know what I am only blaming myself for being a fool and being taken by these ganoffs
4
Jul 03, 2009 at 11:29 AM Yitzchok Says:
If in fact she had no idea what "made off" was up to I fail to see what she did was wrong... She found an investment that was supposed to pay of nicely. And in turn the fund paid her a comission. But the truth doesn't really matter at the end they will look to hang the Jew, especial in Austria.
5
Jul 03, 2009 at 12:20 PM moshe mulva Says:
She is truly a victim, because according to the charges, she made 'only' 40 million....Sounds to me like she got gypped
6
Jul 03, 2009 at 01:16 PM Anonymous Says:
If she did receive kickbacks (i.e.undisclosed commissions)from Mr. Madoff she did breach investor's trust. When someone pays you to manage his funds,as her clients did, you have no right to double-dip by receiving additional compensation from another party. Under some jurisdictions (for example, in the US) this is illegal even when disclosed, but not disclosing it constitutes fraud. I do wish her well as she is a good frum person, but what she has allegedly done is very wrong.
7
Jul 03, 2009 at 02:55 PM michael Says:
“ Mrs kohn came across and presented herself as somone who knows how to invest and knows what she is doing . Fact is she didnt know what she is doing , she trusted this ganoff blindly didnt do her due diligens didnt investigate if the investments are sound... So she is guilty of being a fools messenger and misrepresenting her clients . I lost money ,but you know what I am only blaming myself for being a fool and being taken by these ganoffs ”
Meir, your saying "she came across", and how do you know this? Can I assume that your quote is based on the first article that appeared several months ago?
I think that when anyone posts "facts" and "knowledge" they should please be honest, really honest and share the sources or at least make it clear that its only an assumption.
8
Jul 03, 2009 at 02:39 PM Anonymous Says:
“ If she did receive kickbacks (i.e.undisclosed commissions)from Mr. Madoff she did breach investor's trust. When someone pays you to manage his funds,as her clients did, you have no right to double-dip by receiving additional compensation from another party. Under some jurisdictions (for example, in the US) this is illegal even when disclosed, but not disclosing it constitutes fraud. I do wish her well as she is a good frum person, but what she has allegedly done is very wrong. ”
If it is true that she did get kickbacks then she is not a good frum person
9
Jul 03, 2009 at 01:45 PM Says:
She may not be honest, but at least she is tznius.
10
Jul 03, 2009 at 04:00 PM eekvesedemeshihe Says:
#9 what kind of statement is that ,She may not be honest, but at least she is tznius.
i didnt think anyone can get that dummn as you
11
Jul 03, 2009 at 03:49 PM obverser Says:
#9...you are funny..(she may not be tzinuus either though)
12
Jul 03, 2009 at 04:19 PM Anonymous Says:
“ #9 what kind of statement is that ,She may not be honest, but at least she is tznius.
i didnt think anyone can get that dummn as you ”
unfortunately this is the mindset of many of 'ours'. You can do anything you want in money matters - just don't get caught. But G-D forbid you shouldn't be Tznius or not have a beard down to your toes...
13
Jul 03, 2009 at 04:25 PM class act Says:
#1 ..it is a high class name....to show the investors that she is a classy dame.....(with money)....gevaldig
14
Jul 03, 2009 at 04:39 PM bigwheeel Says:
“ medici?...is that heimisch or upscale?
”
It tries to be upscale, but I'll bet that most Heimishe can't pronounce it!!!
15
Jul 05, 2009 at 02:12 AM Anonymous Says:
“ If in fact she had no idea what "made off" was up to I fail to see what she did was wrong... She found an investment that was supposed to pay of nicely. And in turn the fund paid her a comission. But the truth doesn't really matter at the end they will look to hang the Jew, especial in Austria. ”
The main problem is not that "austria will look to hang a Jew". Her main problem is that her clients were mostly russians, and I think that they are not amused....
16
Jul 06, 2009 at 07:53 AM DerNister Says:
I knew her years ago when I was in law school. She was involved in the American Endowment School in Budapest which was then funded by Albert Reichmann. I used to volunteer for the school. She was always a big snob. I have no sympathy for snobs.