Who’s behind Madoff?

By Wayne Madsen

Feb 19, 2009

As the Securities and Exchange Commission (SEC) announced that it had
cut a deal with $50 billion Ponzi scammer Bernard Madoff whereby Madoff
will neither admit nor deny fraud claims against him in a suit brought
by the SEC --- in return Madoff has agreed to pay civil fines and penalties
levied by the SEC. The agreement has no bearing on Madoff’s criminal

Online Journal has learned that in addition to 20 million documents
stored by Madoff in a warehouse in Queens that were stored without any
indexing system and merely placed in boxes and strewn around the floor
are millions of additional documents that were stored by Madoff in a
Brooklyn warehouse that was partially flooded. A number of the Madoff
documents there were destroyed by water damage.

The Journal has also learned that a key element in Madoff’s Ponzi scheme
was Madoff Energy LLC, formed as a Delaware corporation in February
2007. Other Madoff firms in the energy arena were Madoff Energy Holdings
LLC, Madoff Energy III LLC, and Madoff Energy IV LLC. There are links
between these now-defunct Madoff energy entities and Texas oil and
natural gas industry interests, some close to the Bushes and Dick

We also learned thate the kid glove treatment given by federal
authorities to Madoff, including allowing him to remain in his Upper
East Side luxury town home, is because Madoff’s Ponzi scheme was part of
a much larger operation, one involving top officials of both the George
W. Bush and Barack Obama administrations, as well as the notorious
Russian-Israeli Mafia.

One of the investors in Madoff’s scam was, according to the published
list of Madoff “victims,” was the Bank of New York (BONY) and a
contrivance called the “Alternate Investment Service.” BONY was the
subject of a previous detailed WMR report on the activities of the
Russian-Israeli mob:

“Forest Hills has been identified by the FBI as a major center for both
the Russian-Israeli Mafia and Mossad and it is a place where the two
interests often cooperate. In 2002, OPERATION SPIDERWEB, a joint
FBI-EUROPOL operation, resulted in the arrest of 20 Russian-Israeli dual
citizens on charges of money laundering. The laundering primarily
involved the Bank of New York (BONY), the Russian bank Menatep, and an
‘Internet bank’ called the European Union Bank. More importantly, the
money-laundering network also included Benex, a firm connected to Bill
Clinton-pardoned Mossad figure Marc Rich, who still resides primarily in

Benex’s office was located on Queens Boulevard in Forest
Hills in the same building where Grigori Loutchansky headquartered two
of his companies. Loutchansky is a Latvian-born Israeli who laundered
billions through his Vienna-based NORDEX firm. National Security Agency
(NSA) signals intercepts have reportedly yielded intelligence on
Loutchansky’s role in the smuggling of nuclear materials. Loutchansky
also was closely linked to Clinton’s 1996 re-election campaign through
New York real estate magnate and Democratic donor Sam Dombs. . . .
Forest Hills was also the hometown of international diamond dealer
Yehuda Abraham, convicted in a plot to smuggle surface-to-air missile
launchers from Russia into the United States, a mere four months after
9/11, and launder the proceeds from the deal through Malaysia. The
network was discovered to have links with the Viktor Bout weapons
smuggling network and money laundering facilities linked to ‘Al Qaeda’
Southeast Asia affiliate Jemaah Islamiyah. Abraham, an Afghan Jew, was
linked not only to Mossad but to the Saudi Royal Family.”

Obama’s attorney general, Eric Holder, was the Clinton administration’s
deputy attorney general who approved the eleventh hour Clinton pardon
for Rich.

Another Madoff investor was Mellon Financial Services. On July 8, 2008,
WMR reported:

“A February 27, 2008, truck theft of backup data tapes from Bank of New
York Mellon Corporation’s Jersey City Shareholder Services unit has the
hallmarks of an organized crime heist. Shareholders of the Walt Disney
Company, John Hancock Financial Services (a division of Manulife
Financial Corporation), People’s United Bank of Connecticut, and the
Bank of New York were informed that their stock sale transactions may
have been compromised.”

Obama’s Middle East envoy, George Mitchell, is a former chairman of the
Board of the Walt Disney Company.

The Journal has learned from a U.S. intelligence source in the Middle
East that much of the $50 billion scammed by Madoff is now in Israeli
banks and other financial contrivances established to secretly launder
the ill-gotten loot. The Madoff Ponzi scheme may also be linked to the
revelations by former Liechtenstein LGT bank employee Heinrich Kieber of
secret off-shore accounts held by tax-evading politicians and
businessmen in the United States and other countries, as well as the
Clearstream entity in Luxembourg that involved allegations of a slush
fund used to finance the political ambitions of France’s neocon
president, Nicolas Sarkozy (he is yet another Israeli dual citizen, also
served in the IDF), and other right-wing politicians.

Harry Markopolos, a former investment manager-turned-investigator,
recently told the U. S. House Financial Services Subcommittee that the
SEC failed to take action against Madoff when Markopolos repeatedly
warned the regulatory agency of the Ponzi scheme activities of Madoff, a
former chairman of NASDAQ. The hearing at which Markopolos testified was
chaired by Rep. Gary Ackerman (D-NY), whose 5th congressional district
adjoins the 9th congressional district of Forest Hills and Rego Park, a
nexus for Russian-Israeli mob activity in the New York City area.

On February 9, the SEC announced that Linda Thomsen, the agency’s top
enforcement official, was resigning to “pursue opportunities in the
private sector.

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