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Mort Zuckerman Needs to Take Some Responsibility for His Madoff Losses

DiligentQualified Investor101 is right on target.
The link is at
ascotpartnerslp.com/co...
and everything is exactly as cited.

Perhaps Tom Brown is more prescient than others, given that he didn't bother to even read the link,
ascotpartnerslp.com/
which looks like Ascot's site but isn't, and the NT Times summary, in
www.nytimes.com/2008/1...
both of which lead one to a conclusion that Mr. Zuckerman was acting in good faith and was scammed, rather than stupid.

As long as Tom Brown is ranting about ... "You didn’t have to do a lot of due diligence to see the warning signs. And if you don’t think due diligence is your responsibility, you’ll get what you deserve."...one might expect Tom Brown would show some due diligence himself.

Since his S-A profile says " In 2000, he formed Second Curve Capital, a $550-million-in-assets hedge fund that invests exclusively in financial-services stocks. Brown's original fund, Second Curve Partners, has generated a 20% yearly return, net of fees, since its May 2000 start."...and we now know how thoroughly he "researches" stuff, I'd be more interested in how good his own Second-Curve research is.

On the other hand, DiligentQualifiedInves... did not prove that Tom Brown relied on statements by Mr. Merkins' attorney. But since Merkins, not Zuckerman, is the one taking custody of the money and acting as the fiduciary, it will fall to sterner judges than Brown to determine Merkins' culpability, and the early word is that despite John Polumny's cheap shot at Mort Z, it's Merkin who emerges as the schmuck in this little Yiddish community tragedy.

This just in...NYU suing Merkin too. More to come, I'm sure.

Any snot-dripping comments about NYU, Mr. Brown?


On Dec 24 03:53 AM DiligentQualifiedInves... wrote:

> Mr. Brown, who admits to not reading the prospectus, takes unfair
> aim at Mort Zuckerman by relying on self-serving fabrications apparently
> communicated by Mr. Merkin's attorney. The October 2006 offering
> memorandum of Ascot Partners, L.P. makes only two references (in
> 60 dense, circumlocutious pages) to Mr. Madoff's firm:
>
> 1. "Clearing, settlement and custodial services will be provided
> by one or more unaffiliated brokerage firms. Morgan Stanley &
> Co., Inc. and Bernard L. Madoff Investment Securities, LLC (the "Prime
> Brokers") currently serve as the principal prime brokers and custodians
> for the Partnership." (pages 8-9)
> 2. "Morgan Stanley & Co., Inc. and Bernard L. Madoff Investment
> Securities, LLC (the "Prime Brokers") currently serve as the principal
> prime brokers and custodians for the Partnership, and clear (generally
> on the basis of payment against delivery) the Partnership's securities
> transactions that are effected through other brokerage firms. The
> Partnership is not committed to continue its relationship with the
> Prime Brokers for any minimum period and the
> General Partner may select other or additional brokers to act as
> prime brokers for the Partnership." (page 28)
>
> It would be unreasonable to expect a well informed, qualified investor
> to conclude from the offering memorandum that Mr. Merkin passed all
> investor funds to Mr. Madoff for management and custody. I would
> counsel Mr. Brown in the future to perform at least a cursory examination
> of the facts before making sweeping, potentially defamatory allegations
> against a well-meaning philanthropist and apparent victim.