The Jewish Voice | DEСEMBER 23, 2016

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Happy Hanukkah

Deсember 23, 2016 | 23 Kislev 5777

Turkish Islamist Assassinates Russian Ambassador

Vol. 13, Iss. 52

www.JewishVoiceNY.com

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Platinum Partners Charged with Largest Fraud Plot Since Madoff; 7 Top Execs Arrested

US Attorney Robert Capers (pictured above) told reporters that the Platinum Partners case was one of the largest and “most brazen” investment frauds ever and Platinum was ultimately exposed to have “no more value than a tarnished piece of cheap metal.” The SEC announced parallel charges against the same executives and two Platinum entities for similar civil fraud charges.

By: Jason Neiberger The assailant who killed Russia's ambassador to Ankara was unlikely to have acted alone, a senior Turkish government official said Tuesday, as investigators from both countries hunted for clues as to who might have been behind the killing. (Photo: YouTube Clip)

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O

n Monday December 19, six top executives of New Yorkbased hedge fund manager, Platinum Partners, were arrested and accused of a $1 billion fraud, as reported by Reuters. For years, Platinum was well known for yielding remarkably high returns. This was said to be achieved by their aggressive tactics in investing and fund management. It was a powerful marketing tool to attract new investors, and successfully produced over $100 million in fees. A 48-page criminal indictment against Uri Landesman, President of Platinum Partners along with founder Mark Nordlicht, and five others focuses on a murky corner of the fin ncial

world where the hedge fund peddled, according to an article in Forbes. Besides Landesman and Nordlicht, the others arrested in the fraud scheme were Joseph Mann, Joseph San Filip-

"The charges ... highlight the brazenness and the breadth of the defendants' lies and deceit," said Brooklyn U.S. Attorney Robert L. Capers po, and David Levy who is the fi m’s co-chief investment offic . The New York Times reported that the men were charged with securities fraud and investment adviser fraud, according to an unsealed indictment filed in Federal

District Court in Brooklyn. The Securities and Exchange Commission file a parallel civil case. The New York Times reported that it is one of the largest such fraud cases since Bernard L. Madoff ’s investment fi m unraveled in 2008. The indictment says that since 2012 the defendants allegedly defrauded over 600 investors by over estimating the values of their illiquid assets, most of which consisted of troubled energy-related investments, including Black Elk Energy, a now bankrupt oil driller. Th s caused a "severe liquidity crisis". The $1.3 billion hedge fund allegedly took out high-interest loans to pay investors who redeemed assets at highly infl ted values. Eventually, Platinum selective-

ly chose to pay some investors before others. As reported by Forbes, the U.S Department of Justice in the Eastern District of New York accused Platinum Partners of "operating like a Ponzi scheme” with an eight count indictment. "The charges ... highlight the brazenness and the breadth of the defendants' lies and deceit," said Brooklyn U.S. Attorney Robert L. Capers. “Platinum Partners purported to be a standard bearer in the hedge fund industry, reporting annual average returns of more than 17 percent since inception in 2003,” continued Mr. Capers. “In reality, their returns were the result of

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