Madoff Attacks Fox Business Report

Sep 1 2011 | 8:24pm ET

Bernard Madoff isn't a Charlie Gasparino fan anymore.

The convicted Ponzi schemer is unhappy with the Fox Business Network reporter's article last week, based on weeks of phone calls and e-mails with the arch-fraudster. Madoff called Gasparino a "typical hatchet job reporter," the latter revealed, rather than a journalist Madoff "truly respected in the past."

The problem, it seems, is that Gasparino sought to corroborate Madoff's claims, including that SAC Capital Advisors sought to do business with his firm in exchange for insider tips and that the Harvard Business School was building a course around Madoff's career. Both claims, SAC and Harvard say, are false.

But the problem, Madoff said in what Gasparino called a series of "lengthy and somewhat rambling e-mails," is that he misspoke. While Gasparino reported that Madoff claimed that he once spoke with SAC's Steven Cohen "to stop his managers from approaching my traders with their offer to give them info if we let SAC execute our commission business."

"After reviewing my language to you, I realized I mistakenly said they offered to execute MY orders. It should have read We could execute SAC's orders and earn the commissions which was his standard offer to market makers who would provide him with information regarding the market makers order flow," Madoff wrote. "Surely you had to be familiar with his procedure, which was widely rumored in the press."

"His managers, like everyone else were of the opinion that we had access to huge orders from our hedge fund as well as our market making flow which was hundred's of thousands of orders daily that they could run in front of and visa versa with SAC's orders [all sic]."

SAC—again—told Gasparino that Madoff's new claims are "absolutely false," but that's not likely to assuage his correspondent.

"Did you really expect SAC Capital to confirm the illegal conversation they had with my firm while they are currently under investigation for insider trading?" Madoff asked, referring to SAC's earlier denial.

Madoff also took issue with Harvard's denial, saying that he received Gasparino's story from the "Harvard Business School professor I have been working with." While he didn't identify the academic, he claimed he has a "letter and numerous e-mails concerning Harvard Business School's professor's course project with me."


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.