Actors, baseball legends appear on Madoff client list
| The Associated Press
Posted: Thursday, February 05, 2009
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NEW YORK — Hall of Fame pitcher Sandy Koufax. Broadcaster Larry King. Actor John Malkovich. World Trade Center developer Larry Silverstein.

All four have at least one thing in common: Their names appear on a list of several thousand clients of disgraced financial wizard Bernard Madoff. The list has been made public in a court filing in U.S. Bankruptcy Court in Manhattan.

The list emerged late Wednesday, testament to the sweeping nature of Madoff's alleged fraud. The 162-page list includes Madoff's relatives, prominent business people, celebrities and charitable institutions. Each page carries 84 single-spaced lines. Some customers are listed multiple times, presumably because they had multiple accounts.

The list does not say how much money the customers may have lost, nor does it spell out their specific connection to Madoff.

The list, compiled for a court-appointed trustee in the Madoff case, includes thousands of people and entities listed in the money manager's records as account holders during the 12-month period leading up to his arrest in December. It also includes scores of others who called an investor hot line set up by the Securities Investor Protection Corp. While many of those listed likely lost money with Madoff, it is not clear that all of those on the list were victims, or that all of the victims have been identified.

Many of the people who lost money with Madoff did so through investment "feeder" funds, who turned that money over to the New York money manager. Their names would not have been listed individually in Madoff's books, and would only be included in the court's list if they have stepped forward to make claims.

The client list was released shortly after a whistleblower in the case, Harry Markopolos, told House lawmakers at a hearing that he had discovered that additional funds had relayed investments to Madoff in Europe — and that the managers of these "feeder" funds may have ignored signs of the massive fraud scheme.

He plans to present his findings to the Securities and Exchange Commission's inspector general this week. If proven, they would substantiate the assertions of many analysts that the alleged fraud was far too large for Madoff to have conducted alone.

House lawmakers on Wednesday also sparred with SEC officials, accusing them of impeding their probe into how the agency failed to uncover the alleged fraud.

Prosecutors say Madoff admits he lost more than $50 billion belonging to investors. Defense lawyers say he has cooperated with authorities to help identify assets.

The customers include prominent people and institutions that already had been publicly revealed, such as the Wilpon family, owner of the New York Mets.

More than two dozen accounts involving the Mets and companies affiliated with their owners were listed. New Jersey Sen. Frank Lautenberg is also on the list.

Silverstein held the lease to the World Trade Center's office space when it collapsed on Sept. 11, 2001, and is building three office towers to replace it. His spokesman, Bud Perrone, said in a statement Thursday:

"Losses incurred by Larry Silverstein and his family absolutely pale in comparison to those innocent investors who lost their life savings as a result of this scheme."

Others listed in the document include Madoff's wife, sons, brother and other relatives.

Kevin Bacon and his wife, Kyra Sedgwick, earlier acknowledged they had investments with Madoff, though they were not on the list. A lawyer for Zsa Zsa Gabor has said the 91-year-old actress may have lost as much as $10 million invested in the alleged Madoff pyramid scheme. She also was not on the list.

The 162-page list included Steven Spielberg's Wunderkinder Foundation and organizations for the late singer-songwriter John Denver.

The Elie Wiesel Foundation for Humanity, a foundation named for the Jewish writer and activist, was also listed. The foundation earlier announced that it had $15.2 million — nearly all of its assets — under management with Madoff's firm.

The list also names at least one person who said he didn't invest — Madoff's own attorney.

The inclusion of Madoff's lead criminal-defense attorney, Ira Lee Sorkin, created a brief stir in New York legal circles. Some questioned whether a victim could provide an unbiased defense.

Sorkin said in an interview that he never placed money with the financier. But he wouldn't comment on whether his mother and father, who also were on the list, invested with Madoff.

"You'll have to ask my parents," Sorkin said. Both parents are deceased.

King's spokesman, Howard Rubenstein, said the CNN host suffered "not substantial losses." Rubenstein declined to answer further questions on King's investments with Madoff.

Madoff hasn't been indicted. He's being held under house arrest at his multimillion-dollar penthouse.

The Los Angeles Times contributed to this report.




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