Ex-Madoff CFO DiPascali, Singing Like a Canary

Frank DiPascali, CFO for Bernie Madoff, is widely expected to plead guilty this Tuesday. DiPascali has waived his right to be indicted by a grand jury in a sign that he is looking to cut the best deal possible.

How high a pitch and how many tunes will investigators receive from the canary known as Frank DiPascali? Do you think there are a whole host of people not sleeping very well lately wondering what notes Mr. DiPascali may reach?

Who might some of these people be?

1. Walter Noel: head of Madoff’s largest feeder fund, Fairfield Greenwich.

2. Sandra Manzke: formerly headed Tremont Advisors, another large feeder fund. Manzke left Tremont in 2006 and launched a money management firm Maxam.

3. Andrew and Mark Madoff: Bernie’s sons ran the Madoff broker-dealer operation.

4. Peter Madoff: Bernie’s brother and general counsel.

5. Shana Madoff and husband Eric Swanson: Shana, Bernie’s niece, married former SEC lawyer Swanson in 2007. Swanson was with the SEC for ten years prior to departing in 2006. Ms. Madoff served on a committee at the Wall Street regulator FINRA.

6. Robert Jaffe: vice-president of Cohmad Securities. Jaffe was instrumental in signing up a multitude of investors with Madoff.

7. Sonny and Marcia Cohn: this father-daughter team owned Cohmad Securities, which was physically located within the same space as Madoff’s operations.

8. Certain large Madoff investors with whom DiPascali had regular contact. How much did they know?

9. Who were the regulators from FINRA and the SEC responsible for monitoring the Madoff operation? Are they nervous as well? Will investigators dare to pursue this angle?

Obviously, if any of these individuals (and any others) are implicated by DiPascali, they are entitled to due process.

I would love to see Mr. Harry Markopolos reintroduced into this equation. Mr. Markopolos clearly knew the inner workings of the Madoff operation. Will investigators have the courage to engage him and expose the shortcomings in our regulatory oversight?

No stone should be left unturned!!

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

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2 Comments on Ex-Madoff CFO DiPascali, Singing Like a Canary

  1. Was the Madoff operation sanctioned by Executive Order 12333 (1981) of President Reagan, wherein the US intelligence services were authorized to operate what became known as Title 18, Section 6 USG corporations for intelligence purposes, and to deny any intelligence community connection?

    http://www.tscm.com/EO12333.html
    http://en.wikipedia.org/wiki/Executive_Order_12333

    Hence, there need NEVER be any revelation of what Madoff, just “a cog in the corrupt financial wheel,” was up to, e.g., criminal money laundering, black ops financing, intelligence gathering, under the cover of “National Security … need to know, compartmentalized.” Unless someone inside leaks the info — under penalty of up to death due to Treason — there’s no way to confirm same.

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