Cempaka Global Hotspots: Madoff's alleged $50 billion fraud hits other investors

"A Summary" – Apr 2, 2011 (Kryon channelled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) - (Text version)

"The Timing of the Great Shift" – Mar 21, 2009 (Kryon channelled by Lee Carroll) - (Text version)

“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013. They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."

"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)

"The New Paradigm of Reality" Part I/II – Feb 12, 2011 (Kryon channelled by Lee Carroll)

(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

(Live Kryon Channelings was given 7 times within the United Nations building.)

"Demystifying the future" + "Physics in the next 500 years"(#) - May 16-17, 2014 (Kryon Channelling by Lee Carroll) - (#) (This channel will become a historical channel in the future, prove that Kryon is a real communication from the Creative Source/God to Humanity - "Our Family") - (Text version "Physics in the next 500 years")

1 To see and measure multi-dimensional/quantum physics, instrument (super-cooling quantum plasma lens)

2 Two more laws of multi-dimensional physics revealed: explanation of dark matter & acknowledgement of free energy (controlling mass)

3 God in the atom. God has - provable - part in physics. Intelligent/benevolent design. (Will bring religion and science together)

4 Human Consciousness is an attribute of physics. (Pleiadians - Humans ancestors / Humans free choice only planet in the Milky Way Galaxy. Other galaxies have their own spiritual systems and physics)

5 Coherent DNA. Multidimensional DNA coherent between dimensions will give Enhanced DNA

"THE BRIDGE OF SWORDS"– Sep 29, 2012 (Kryon Channelling by Lee Carroll) - (Text version)

“… What have we told you about the bridge? Actually, not much except that in crossing the bridge, the old energy ones were not going to like it. Old energy does not want you to escape! Old energy doesn't want you to cross the bridge because it can't cross. Did you know that? It can't cross. The old paradigms of Human nature that you've known all of these millenniums have to stay on the old side of the bridge. It cannot cross, for the bridge rejects all that is not in love, compassion and light. Those things that are dark, including Human nature of the past, will not be able to go. But the ones I speak to right now are already on the bridge. That was your design, old soul, and those are the words that are ringing in your ears to this day and the ones given at the wind of birth, that this might happen in your lifetime. So what's going to happen next?

Swords

Let us talk about the swords: When you hear the word sword, the first thing that occurs to you is battle. The Bridge of Swords is a battle and we told you that as well. Swords are metaphoric and they mean many things, so let us describe the things we mean them to say to you.

Number one: They are indeed a weapon in a battle. There is a battle coming. "Kryon, does that mean there's going to be a war?" Potentially, yes. Right now we will tell you that the Middle East cooks itself. You've noticed, haven't you? What do you know about the Middle East, dear one? Let's start examining things for a moment. What energy did you grow up in? What was the energy of the Middle East? In the '40s, what was the energy? With the establishment of the state of Israel, you built a wall of hate, both sides. The wall was so thick that the children of both sides were taught to hate one another as soon as they were able to understand the language. They were told who their enemies were. Now, where were you then?

Some of you weren't here yet. By the time you arrived, in your youth, were you aware of the Middle East? Not particularly. "What's the hatred about?" you might ask. What if I told you it's about a family feud? Two sons of a Jewish master are involved. One founded the Arabs and one remained a Jew. They don't want to hear this, but they are all Jews. (Don't tell them this.)

If you look at the lineage, it's pretty obvious and yet it's a complete and total set-up for either solution or war. The set-up would have this world ending in a conflagration that would have been brought about by this hatred. That's in the prophecy of Nostradamus and your scripture, but it is no longer the prophecy of the planet. Yet the hatred still exists. The hatred is as great today as it was then, but where was all the terrorism 40 years ago? It was isolated.

Those in Israel and Palestine and surrounding areas took the brunt of it, but now it's seemingly everywhere - and you're worried. Why would this be? The answer is that the old energy was happy to have this hatred contained, for it would keep it going and never involve outsiders. Outsiders tend to bring unwanted light to the party. Suddenly, the whole earth is involved and can see the entire scenario before them. The old guard wants war, just like all the eons before them. The ones on the bridge are holding the light and showing the earth how to cross. Even many younger ones in Israel and Palestine and Iran are holding light! It's all around the old guard and they are furious, for they are losing the "battle of hatred." …”

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”

Saturday, December 13, 2008

Madoff's alleged $50 billion fraud hits other investors

Fri Dec 12, 2008 6:05pm EST

NEW YORK (Reuters) - Investors scrambled to assess potential losses from an alleged $50 billion fraud by Bernard Madoff, a day after the arrest of the prominent Wall Street trader.

Prosecutors and regulators accused the 70-year-old former chairman of the Nasdaq Stock Market of masterminding a Ponzi scheme of epic proportions through his investment advisory business, which managed at least one hedge fund. Hundreds of people, investing with him through the firm's clients, entrusted Madoff with billions of dollars, industry experts said.

The building where Bernard L. Madoff Investment Securities LLC offices are located is seen in New York December 12, 2008. All equity trades involving market-making firm Bernard L. Madoff Investment Securities LLC, which was founded by Bernard Madoff -- the broker arrested for an alleged $50 billion fraud -- will be processed as usual, the Depository Trust Clearing Corp told Reuters on Friday. REUTERS/Shannon Stapleton

"Madoff's investors included captains of industry, corporations -- some of which are publicly traded -- that used Madoff almost as a high-yielding cash management account, endowments, universities, foundations and, importantly, many high-profile funds of funds," said Douglas Kass, who heads hedge fund Seabreeze Partners Management.

"It appears that at least $15 billion of wealth, much of which was concentrated in Southern Florida and New York City, has gone to 'money heaven,'" he said.

A Ponzi scheme is an illegal investment vehicle that pays off old investors with money from new ones, and is dependent on a constant stream of new investment. Because the invested capital is not earning a sufficient return on its own, such schemes eventually collapse under their own weight.

Federal agents arrested Madoff at his apartment on Thursday after prosecutors said he told senior employees that his money management operations were "all just one big lie" and "basically, a giant Ponzi scheme."

Madoff is the founder of Bernard L. Madoff Investment Securities LLC, a market-making firm he launched in 1960. His separate investment advisory business had $17.1 billion of assets under management.

'BUSINESS AS USUAL?'

About a dozen angry investors gathered on Friday in the lobby of the Lipstick Building in midtown Manhattan, where the market-making firm and advisory business are headquartered, demanding to know the fate of their money.

One woman said that when she called the firm's offices on Thursday she was told it was "business as usual."

Another investor groused, "Business as usual? Of course it's business as usual. We're getting screwed left and right."

Police later evicted the small group from the building.

Individual investors were feeling the squeeze elsewhere.

"I expect to get back zero," said Susan Leavitt in Tampa Bay, Florida, who invested through Madoff. "When he tells the Feds, he has $200 million to $300 million left out of billions, what can you expect.

The two most prominent hedge funds that invested with Madoff were the $7.3 billion Fairfield Sentry Ltd, run by Walter Noel's Fairfield Greenwich Group, and the $2.8 billion Kingate Global Fund Ltd, run by Kingate Management Ltd.

Fairfield Sentry and Kingate Global were among a small group of hedge funds to report positive returns for 2008; the average hedge fund was down 18 percent, according to data from Hedge Fund Research.

"People who came to us for portfolio construction were often already invested with Bernie Madoff, he had hundreds of clients," said Charles Gradante, who invests in hedge funds as a principal at Hennessee Group LLC. "Now his whole legacy is destroyed. He was God to people."

Prior to Madoff's arrest, investors had wondered how he was able to generate annual returns in the low double digits in a variety of market environments. Many questioned how U.S. regulators were able to ignore numerous red flags with regards to Madoff's operations.

"Many of us questioned how that strategy could generate those kinds of returns so consistently," said Jon Najarian, an options trader who knows Madoff and is a co-founder of optionmonster.com.

In May 2001, Barron's reported that option strategists for major investment banks said they could not understand how Madoff managed to generate the returns that he did.

"We weren't comfortable with Madoff," said Brad Alford, president at investment adviser Alpha Capital in Atlanta. "We didn't understand how his strategy could generate the kind of returns it did. We will walk away from things like that."

MORE TO COME?

U.S. stocks tumbled in early trading on Friday, with some investors citing the Madoff case as well as the failure of talks in Congress on a rescue for the U.S. auto industry. The market later rebounded, with the Dow Jones industrial average rising 64.59 points, or 0.75 percent, to end unofficially at 8,629.68.

Investors overseas were reeling from the alleged fraud.

Benedict Hentsch, a Swiss private bank, said it had 56 million Swiss francs ($47 million) of exposure to Madoff's investment advisory business. UniCredit SpA's fund management unit, Pioneer Investments, has exposure through its Primeo Select hedge fund, two people familiar with the matter said.

Bramdean Alternatives Ltd said almost 10 percent of its holdings were exposed to Madoff, sending shares in the UK asset manager crashing.

CNBC Television reported that Sterling Equities, which owns the New York Mets baseball team, had accounts managed by Madoff.

'UNFORTUNATE SET OF EVENTS'

Madoff said "there is no innocent explanation" for his activities, and that he "paid investors with money that wasn't there," according to the federal complaint.

Prosecutors also accused Madoff of wanting to distribute as much as $300 million to employees, family members and friends before turning himself in.

Charged with one count of securities fraud, he faces up to 20 years in prison and a $5 million fine. The U.S. Securities and Exchange Commission filed separate civil charges.

A hearing had been scheduled for Friday afternoon in U.S. District Court in Manhattan on the SEC's request to grant powers to the court-appointed receiver to oversee the entire firm, as well as on the commission's request for a firmwide asset freeze.

But the hearing was canceled after the matter was resolved, said a deputy for U.S. District Judge Louis Stanton. No other details were immediately available. The receiver, lawyer Lee Richards, had been appointed by the judge on Thursday to oversee assets and accounts of the firm held abroad.

Madoff's lawyer, Dan Horwitz, said on Thursday, "We will fight to get through this unfortunate set of events." His client was released on $10 million bond.

Madoff is a member of Nasdaq OMX Group Inc's nominating committee. His firm has said it is a market-maker for about 350 Nasdaq stocks.

He is also chairman of London-based Madoff Securities International Ltd, whose chief executive, Stephen Raven, said the firm was "not in any way part of" the New York-based market-maker.

All equity trades involving the market-making firm will be processed as usual, the Depository Trust Clearing Corp told Reuters on Friday.

(Reporting by Jennifer Ablan, Edith Honan, Aarthi Sivaraman and Leah Schnurr and Dan Wilchins in New York; Svea Herbst-Bayliss in Boston, Steve Slater in London and Lisa Jucca in Zurich; editing by Jeffrey Benkoe, John Wallace, Toni Reinhold)

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