"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Saturday, December 20, 2008

Frank J. Avellino - Bernie Madoff's partner in crime

There is a fascinating and MUST READ about Bernie Madoff and his family's inclination to steal money at Culture of Life News which should make your hair stand on end.

It has also produced a comment from Anon. which is worth copying here in its entirety ...

I need to remain anonymous for now, so I will trust you. The mastermind behind Bernard Madoff and his associate for more than 16 years has, until now, escaped scrutiny from the media and from law enforcement.

His name is Frank J. Avellino.

Avellino has been swindling people with Madoff for years. In 1992, the SEC investigated Avellino in an illegal $440 million securities case, but let him go. (Lord P. Not true see above) (Interestingly, the pair's attorney in the SEC case was Ira Sorkin. Madoff's current attorney: Ira Sorkin. )

See Wall Street Journal article - Dec 16, 1992:

Avellino has been scamming people with phony investment schemes, but not limited to the rich and famous.

He preys on innocent people with only $10,000 - $100,000 that he tells has access to the top people and proven profits on Wall Street and because their investment amounts are too small, he will bundle them with his funds which endears them to him and makes them feel safe and secure.
Many small investors have lost their life savings.

Avellino won’t even face his victims. He had his wife call them last week and inform them that their money was lost because it was invested with Bernard Madoff.

None of them had ever heard of Bernard Madoff, as their investments checks were written to Frank J. Avellino personally. He deposited them in one of his accounts at Citibank.

Annually he would send each investor a statement from Kenn Jordan Associates, an alias.

Avellino is hiding out in his New York apartment.

Frank Ave llino (212) 396-0404 655 Park Ave, New York, NY 10065

He also has a $4.5 million house at 223 Coral Lane in Palm Beach, And a $10 million house on Nantucket Island.

Law enforcement should force him to sell his properties and pay back all of the investors.

Frank J. Avellino is a crook and needs to go to jail with Bernard Madoff.

Please expose Frank J. Avellino as the fraud he is and I hope the authorities get him this time.

Thank You.

Avellino and Madoff have been working together, in tandem, operating the same Ponzi schemes. Some believe Avellino introduced the Ponzi scheme concept to Madoff and taught Madoff how it would work. These two have been working together for more than 16 years.

I know people, including my brother on Nantucket Island that have lost all of their money investing with Avellino, their losses are in the $ millions.

Avellino claimed he lost their money with Madoff, but there is no paper trail that he ever sent their money to Madoff. Avellino used a company named Kenn Jordan Associates to send annual statements to his victims. They have consulted with attorneys, so the Avellino/Madoff connection will become public soon.

Read page 3 of the SEC report (see above) on Avellino and Michael S. Bienes, another Madoff associate.

Avellino and Michael S. Bienes were partners, operating the same Ponzi scam, Avellino, Bienes and Madoff are all linked together in the same fraud.

I will keep you in the right direction, but I need to remain anonymous for now.


Frank Avellino lives in 223 CORAL LANE Palm Beach 33480 and his Campaign Contributions can be seen here for Guiliani, Dole and Mc Cain. Mrs & Mrs A bought the property 223 Coral Lane for US$4,500,000 in May 2004 from Steven J Multin (Individually and as Trustee), Steven J Multin (Revocable Trust), and Tina Multin. It is also the address of the AVELLINO FAMILY FOUNDATION INC Pres. Frankie Boy. Tax exempt data here.

Mr & Mrs Avellino are gracious Patrons of the Metropolitan Museum. Mrs A also bought a cobblestone for the 911 memorial fund that's > US$9,999

According to Huffington Post $3,679,491 was given by people who identified their zip as "33480". $2,085,047 from 683 people to Republicans $1,594,444 from 534 people to Democrats

See also this fascinating piece in Naked Shorts
Madoff tops charts;skeptics ask how
By Michael Ocrant
Mention Bernard L. Madoff Investment Securities to anyone working on Wall Street at any time over the last 40 years and you’re likely to get a look of immediate recognition.

The final sentence ... "
Madoff, who believes that he deserves “some credibility as a trader for 40 years,” says: “The strategy is the strategy and the returns are the returns.” He suggests that those who believe there is something more to it and are seeking an answer beyond that are wasting their time.

So ? - well the date of the piece is MAR/Hedge (RIP) Page 1 No. 89 May 2001

Now some more information on Mr Bienes New Times Broward Palm beach Bob Norman's Blog 17th Dec 2008

Bienes, an accountant who lives in a house assessed at about $7 million on swank Bay Colony Drive in Fort Lauderdale, (where Mayfair bookeeping services hang their shingle - see below) once had deep ties to Madoff.

He (he's about 70 now) and his wife have been generous benefactors - His donations in Florida have tallied $30 million, according to a 2005 article in an English publication run by the Genesis Foundation. Since then he and his wife have given at least another $4 million to Holy Cross and most recently he's been pouring money into St. Thomas Aquinas. And that's just Florida.

They like London and have a flat behind the Ritz Hotel) so they shifted a large part of their giving to Britain. The Royal Opera and the Donmar Warehouse now get their money.

The Bieneses love Glyndebourne, which they support heavily - as well as the English Chamber Orchestra Both Mike and Diana are on the Board and in September they are organising an ECO fundraising dinner at Windsor Castle with the Prince of Wales. Tables are £10,000 a piece.

Currently, Bienes and Avellino run a company called Mayfair Bookkeeping Services - 4750 NE 23rd Ave Fort Lauderdale , FL 333087767141. Perhaps coincidentally, Madoff has a financial base in Mayfair, England, where the Evening Standard reported that he kept his "dynastic piggy bank."


Selva Ozelli CPA has written about US tax implications of risk management transactions of hedge fund managers. This may apply to Madoff and his foreign investors as well.

He has interesting things to say about the swift collapse of the Carlyle Capital Corporation (CCC) listed on the Amsterdam exchange which we posted about Thursday, March 13, 2008 Carlyle Capital Corporation go bust - US$16.6 BN ++++ down the tubes...more to follow and also Friday, March 07, 2008 Carlyle leads the way with Triple A mortage Fire Sales as margin calls cannot be met plus the woes of Bear Stearns which we have covered over the last two years ....see all these posts .

Mr Ozelli is very technical and understanding his arguments require knowledge of tax laws etc., beyond even our vast and experienced legal counsel. The bottom line seems to be that if you were unwise enough to invest in an offshore hedge fund that goes tits up yuo may need to pay taxes even thou you have lost all your money.


Stef said...

I would be betraying my contrarian principles if I didn't at least raise the possibility that Madoff wasn't engaged in a Ponzi scheme at all

Regulators/ auditors/ compliance folk may frequently be rubbish but not that consistently rubbish to miss such an alleged long-lasting, gob smackingly large alleged Ponzi scheme

It 's also worth bearing in mind that Madoff himself, a self admitted liar and thief, is the person who first used the Ponzi word, at the same time as making the unbelievable claim that he managed the entire fraud all on his lonesome

Two possibilities spring to mind:

- Either you're looking at a group of fraudsters, including the complicity of at least some regulators, or...

- Madoff lost the money trading fair and square, as so many other hedge funds have been stuffed this year. Madoff is now claiming to be a fraudster so that his clients may be able to seek some redress by claiming negligence on the part of the regulators and firms who placed money with Madoff on their behalf.

This would be a pretty desperate stunt but it would be fair to assume that at least some of Madoff's clients are serious individuals who are not in the habit of accepting losses

ziz said...

Apologies headline should be Avellino ONE of bernie Madoffs partners in crime.

It wall be a long time if ever we know what happened.

Th bottom line is evidently that a huge number of smaller Ie net worth >US$10 Mn got ripped off by someobdoy associated with the miasam of Madoff and waht is increasingly looing like an archipelago of fraudulent traders.

Fraud is like serial murder. It's the first con ( and attendant guilt) that is difficult after that it gets eas(y)ier.

Maybe it was an honest(ish) racket that simply ran out of control, gathering mass, speed and momentum.

I would strongly suspect that Mr Madoff develops a Saunders (ex Guinness swindler) Alzheimers condition making it impossible for him to plead (oprobably even remeber anything) which miraculously after a few years in the mellow sunshine of Palm Beach / Tel Aviv will improve.

It is highly likely he has been under treatment for ...well... some time...

Which doesn't mean that someone won't want to se if they can improve his powers of memory and concentration on the Westchester Golf Coure with a well aimed sand Wedge.

Stef said...

I would strongly suspect that Mr Madoff develops a Saunders (ex Guinness swindler) Alzheimers condition making it impossible for him to plead (oprobably even remeber anything) which miraculously after a few years in the mellow sunshine of Palm Beach / Tel Aviv will improve.

that Right of Return to a country with biff all extradition agreements thing is a darling isn't it

it might not be the most sensible option in this case though

juan said...

Oy Vey!!!!!!!!!!!! Ithis story keeps getting better…... this perfect Ponzi scheme of Madoff (Made-Off) continues to fascinate the world. ….A true financial holocaust… He managed to lose or steal 50 billion dollars, which can't be easy to do no matter how hard you try….. with a busy looking stock-trading operation occupying the 19th floor, of his building…. and the computers and paperwork of Bernard L. Madoff Investment Securities (his name is on the door remember!) filled the 18th floor and on the 17th floor was Bernie Madoff's fraud center, occupied by another two dozen staff members but who must have been blinded by some sort of quantitative trading wizardry in order produce that mind-numbing 10-12%… lol ….It was called the "hedge fund" floor, where the scam was conceived…….. and nobody else knew?????????????? .not the other 2 dozen employees who worked there?????? I smell rotten lox..I actually feel bad for Charles Ponzi ..Ponzi scammers will have to change their name to “Madoff schemers”.and Mr.Ponzi will disappear into the federal prison files….... in researching more about hedge funds I came across a few books that were also fascinating... Hedge Fund Trading Secrets Revealed by Robert Dorfman... and Confessions of a Street Addict by Jim Cramer....both these books take you on a great ride about hedge funds how they make and lose millions…… and expose many other scam practices in this game. Dorfman actually teaches his strategies.

Anonymous said...

i haven't studied this closely but noticed one glaring discrepancy in this article from a nantucket paper: http://www.ack.net/Avellino123108.html

if correct (and i haven't seen the affidavit), the cleaning lady, ivanova, was told by avellino on december 1 that 'all her money had been lost'. however, madoff was not arrested until december 11 so avellino was either officially in on the scam or got an early heads-up from madoff. she probably remembers the date since it was the day she was told her life savings was gone...

(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish