Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Bill Clinton Scandal - SANITY CHECK -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (54023)	6/23/1999 9:12:00 AM
From: Zoltan!	Read Replies (1) \| Respond to of 67261

From the "You gotta love those liberals" department. Seems one bleeding heart named Martin Frankel stole as much as $3,000,000,000 from his clients. Here's his description from the WSJ: Mr. Frankel was fired from the Dominick & Dominick office, according to John Schulte, the office's co-owner. Mr. Bitter says he was also struck that Mr. Frankel was "a very liberal person. He often spoke about being concerned about the underprivileged. ... It made a real impression on me. I thought this is a real caring guy. He frequently spoke about what a sacred trust -- this is so incredibly ironic -- what a sacred trust it was to manage another person's money and to be careful with it." Mr. Bitter wasn't alone. John Herlihy, a retired Sears, Roebuck & Co. store manager, turned over some $250,000 of stock and cash, his retirement savings, according to Jeffrey Creamer, a Toledo lawyer who represented Mr. Bitter and Mr. Herlihy, who has since died. But Mr. Creamer's clients became alarmed after Mr. Frankel moved to Palm Beach, Fla., in the fall of 1987. When Mr. Herlihy and his wife made attempts to get their money back the following year, Mr. Frankel visited them in Toledo and persuaded them to allow their investment to remain with him. He promised the couple that their principal would be preserved and that they would see a 10% return on their investment. In the following months their investment statements showed just that. However, in the spring, Mr. Frankel told Mr. Bitter that the Frankel Fund had been involved in a disaster, according to Mr. Creamer. Soon after, he says, Mr. Herlihy received a phone call from a lawyer for Mr. Frankel who said that the SEC had frozen the fund. In fact, Mr. Creamer said he learned, Mr. Frankel had forwarded the money to a lawyer, who put it in a bank account and alerted authorities that it was disputed money, a move that, at least temporarily, prevented the investors from retrieving their money. That is when the investors took their cases to court, and they landed in arbitration. During the case, Mr. Frankel insisted that some of the money had been stolen by a partner. But the partner, in turn, pointed the finger at him. Mr. Creamer's clients had never met the partner, Mr. Creamer says. Mr. Creamer says he found evidence that Mr. Frankel had spent some of his clients' money on himself, and that some of the money had been invested, but substantial losses had been sustained. In the latest allegations against Mr. Frankel, an agent with the Federal Bureau of Investigation alleged in an affidavit filed in federal court in Bridgeport, Conn., last month that Mr. Frankel violated the SEC ban by operating "numerous business entities engaged in securities trading and financial transactions." The affidavit added that Mr. Frankel "systematically drained" the insurance companies' assets he managed "through various financial accounts and transferred them into accounts in and outside this country under his control and for his use. Mr. Frankel then laundered these funds purchasing untraceable assets and paying for the expenses of his operations in this country and otherwise." In addition, the affidavit said Mr. Frankel used "several different aliases," and apparently false corporate identities, in his dealings with would-be business affiliates. Indeed, David Rosse, a man Mr. Frankel hired to put up an elaborate and expensive security system in his home, has sued Mr. Frankel in Connecticut Superior Court in Stamford for alleged nonpayment and use of his name for business transactions. Mr. Frankel has continued to portray himself as a friend of the underprivileged. Investigators are sorting out the money manager's role in establishing a British Virgin Islands-based charity that purported to have ties to the Vatican, a star-studded board of trustees and $1.98 billion in assets. As reported, it turns out that some of the charity's claims were false. interactive.wsj.com A Clinton/New Dem, no doubt. I'll bet he's working on Hillary's campaign.