Thursday, 24 July 2014
Last updated 7 min ago
Jan 15 2009 | 2:07am ET
Robert Jaffe, who funneled billions of dollars to accused hedge fund fraudster Bernard Madoff, skipped out on his date with Massachusetts regulators this week.
Jaffe was scheduled to meet with the Massachusetts Securities Division on Tuesday morning but never showed up. A spokesman for Jaffe said he was under the care of a doctor and could not attend the meeting.
“The Massachusetts Secretary of the Commonwealth was aware of this and agreed to an adjournment,” Josh Hochberg told CNBC.
William Galvin, the aforementioned secretary well-known for his run-ins with hedge funds, was not amused.
“Robert Jaffe did not appear for his subpoened testimony today,” Galvin said. “The Securities Division is preparing to enforce the subpoena and take all necessary actions to protect Massachusetts investors.”
Jaffe worked for Cohmad Securities, which marketed Bernard L. Madoff Investment Securities’ products and was co-owned by the alleged Ponzi schemer himself, for almost 20 years. He reportedly served as one of Madoff’s key associates, attracting clients from his base in the Boston area and from Palm Beach, Fla., where he also owns a home. He is also the son-in-law of Carl Shapiro, the Boston philanthropist who reputedly lost some $400 million invested with Madoff.
Jaffe’s spokesman said his client “had absolutely no knowledge of the fraud, and like so many others is a victim of these tragic events.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…