Cons Targeting Jews: First Madoff, Now Stanford
It took a long time for anyone to point out an obvious phenomenon about the $60 billion Bernard Madoff Ponzi scheme, the largest in history. It was that Madoff victimized thousands upon thousands of his fellow American Jews. By the time that phenomenon was recognized, it was too late for Americans to properly digest the intellectual nutrients it offered. The story was over.
But now it turns out that another Madoff-like Ponzi operation, this one the world’s second largest, also laid financial waste to Jews. This clearly is no one-off phenomenon.
As a story, the Stanford Financial Group of banks and “investment” houses got much shorter shrift than Madoff’s crimes, and so far no one has publicly connected it to a specific demographic of victim. But the Stanford Ponzi, started by former Texas health club owner R. Allen Stanford, hammered the 40,000 Jews of Mexico City to the tune of a half billion dollars, and to a lesser extent hit the smaller Jewish community of Caracas, Venezuela.
In February, the Securities and Exchange Commission charged Stanford with operating a “massive” fraud. All told, regulators believe Stanford attracted an estimated $8 billion from about 30,000 victims in Latin America, Europe, and the U.S. for purportedly safe investments like certificate of deposits (CD), albeit with a high return. About $6 billion is believed to be missing. Stanford, once on the Forbes 500 list, is now in federal custody facing 21 counts of conspiracy, fraud, bribery, and obstruction of justice. He insists he is innocent.
In Mexico, no one in the tightly entwined Jewish community is very eager to talk about it. But according to off-the-record interviews I’ve been conducting with Jewish leaders and members since July, Jewish schools and charities are devastated and struggling to stay open. Retirees lost everything. Once comfortable widows are suddenly broke and desperate. Young married couples lost wedding money. College education funds are gone. Inheritances passed down from beloved grandparents — gone. Huge capital losses are being felt in every corner of the community. Everyone either lost their own money or knows one or more people who did.
How did it happen, especially since Stanford was not Jewish and actually wore his Christianity on his sleeve? And is there — finally — a cautionary lesson to be learned by Jews and non-Jews alike who may have missed the lesson offered by the Madoff scandal?
Stanford, a southern Baptist who loved to project his religiosity in business, did what he did in Mexico by hiring a Mexican Jew with deep roots in the community to open and then run his operations there. That Stanford executive’s name is David Nanes. Nanes hired Jewish account executives from the community. This crew, by dint of that rather closed community’s interlocked kinship ties, burrowed under the cultural firewall straight to Jewish money.
Sofie Freiman, head of a Jewish charitable institution called Kadima which helps 250 developmentally disabled adults and children in Mexico City, explained that Nanes and his people exploited Jewish family trust bonds — and solid, though bogus, returns — to persuade her and her board to hand over most of Kadima’s endowment funds.
It’s all gone now, leaving plans to expand programs and the facility moribund. Kadima is struggling badly now. But that’s not what hurts the most, Freiman told me:
You would never think in your life, if you’re a widow, that a nice Jewish boy is going to fool you in a scam, because you know his mother and you never think he’s going to take advantage. This is where it’s most painful, that it was done by Jews.
No anti-Semitism is evident here, no more so than with Madoff. No, what happened here has to do with love of community.
To understand why this should matter to the non-Jewish world, it’s crucial to get that Mexican Jews, like Jewish minority communities scattered throughout the global diaspora, tend to share almost evolutionary trust in one another born from centuries of organized persecution and genocide in adopted lands. Over the eons in different nations, Jewish people have become almost genetically inculcated with the idea that, in inevitable times of trouble, help will ever only come from other Jews. An animal instinct for survival, if you will, born of shared culture, identity, religion, and external threat over time.
Stanford’s hiring a Mexican Jew to head the Mexico division’s sales of bogus, high-interest CDs was akin to a scientist placing a single strain of bacteria in a gel-filled petri dish. It spread extremely fast with no natural predators.
Nanes was born, married, and had children in the community. His roots there ran deep.
While it’s unclear whether Stanford thought to choose Nanes for his Mexico City Jewish connection, Nanes certainly knew that was where some money was to be had in an economically checkered country. Those who bought in and profited spread the word to loved ones they sincerely hoped could share in the profit.
In the Jewish community there is six degrees of separation. It is hard to go anywhere in the world where Jews can be found not to meet someone who knows someone you know. It is both uncanny and comforting considering our small numbers.
It is these ties that bind which Stanford and Madoff-may they rot in hell-counted on to enrich themselves.
As far as the Mexican Jewish community-I met several of their children who were students with my son at MIT. They came from wealthy, mostly religious and close knit families. A very proud and capable group of students.
The depth of the financial ruin to this close knit community is inestimable.
“” … Exploiting the tight bonds of trust within Jewish communities to get at their money … “”
Sounds, sans super-steroids, like Wall Street’s exploitation of its tight bonds (and revolving doors) with Capital Hill — and 1600 Pennsylvania — to get at ours!
“” … Exploiting the tight bonds of trust within Jewish communities to get at their money … “”
Sounds, sans super-steroids, like Wall Street’s exploitation of its tight bonds (and revolving doors) with Capital Hill — and 1600 Pennsylvania — to get at ours!
“It took a long time for anyone to point out an obvious phenomenon about the $60 billion Bernard Madoff Ponzi scheme, the largest in history. It was that Madoff victimized thousands upon thousands of his fellow American Jews.”
This was pointed out by the media on Day One. Elie Wiesel was interviewed, Hadassah was highlighted, individual Jewish victims were prominent on the list of victims.
I wonder how long it will take for these same groups (Jews, African Americans, Hispanics etc) to realize that their monolithic, unthinking support for the Democratic Party is the same type ripoff
The world has long preyed on the intellect, wealth, integrity and vulnerability of the Jewish people. All that appears to be left for the world’s Jews is to return to their native soil…Israel….where they will be welcomed and defended by Almighty God and Israel’s economic and military might.
According to the Talmud, “All Jews are sureties for one another.” This idea runs all through Judaism and Jewish history; it is difficult to study any Jewish classic without sooner or later encountering this idea that Jews are mutually dependent on one another. When Madoff shattered this bond, he committed a very real sin. One cannot help but wonder how Jews will relate to one another in the future if it becomes evident that they are no longer “sureties” for their fellows.
It is sad that family and community ties are used to steal from people. It doesn’t matter what religion, family, or community is the victim this is something that only the lowest of the low would do. Stanford needs to have his every asset stripped from him and sold to reimburse his victims, then given a nice long stay in the general population of a Mexican prison.
Where were the “watchdogs” that are paid to protect the public? Surely the auditors and accountants know what’s going on; why aren’t they also in jail.
Madoff was but the tip of the iceberg in the Bush, neo-con golden age of greed. By 2008 this mighty facade of wealth had become nothing more than a house of cards. Sustained by the insatiable lust for money and moral bankruptcy. What was left? America’s, indeed the worlds, financial institutions will take years to recover, and there are many individuals that have lost everything and may never recover in their lifetime. But Madoff was correct…it was a culture and it was multi-cultural…and he was not alone. Will it happen again?..of course it will.
Given that Jewish people are overwhelmingly socialists, it should come as little surprise that they are overwhelmingly naive. What has been done to them, not just by these criminals, but historically, one would imagine that they might be a little more cynical. A little more careful. Judging by performance rather than rhetoric is a good place to start. My heart goes out to the good people that have lost so much.
#8
He’ll just end up expanding the skill sets of wanna-be narcos!
Why are so many of these people close friends of with Sean Hannity?
PC I got one word for you.
Enron.
Your point about exploiting interpersonal trust (“affinity fraud”) inside the Jewish community is well borne out by this Vanity Fair piece on Madoff.
Madoff’s World
Poor Citizen:
Bernie Madoff is a Democrat who was a big contributor to the Democrat Pary and Barak Obama. R Allan Stanford was more bipartisan in his giving although more money went to Democrats the Republicans.
16: Jerryofva
I never cared what his party affiliation was, he (and many others of the same ILK..) made their money during the culture of greed that went almost unchecked….and the result????… just look up world history 2006, 2007 and 2008 (financial stories). And, we are still trying to recover…You will see what I speak of… trust me.
11: Johnny Dunn: Through what source-other than personal prejudice- do you derive your conclusion that ‘Jewish people are overwhelmingly socialist and that they are overwhelmingly naive’?
Anyone who got scorched by Madoff or immolated by Stanford, regardless of their relgious affiliation, deserves some commiseration. Greed and the desire for excess return can lead anyyone to the poorhouse.
“If someting seems too good to be true, it is” should replace the golden rule.
I can’t speak to the naive-ness of the Jewish people, but Norman Podhoretz has just written a book, “Why Are Jews Liberals?” that examines why Jews are socialists/liberals/progressives/whatever.
Quote from the Washington Post review at Amazon:
“Liberalism has become the religion of American Jews,” he writes, “even though it conflicts in substance with the Torah . . . [and] the most basic of all Jewish interests — the survival of the Jewish people.”
http://www.amazon.com/Why-Jews-Liberals-Norman-Podhoretz/dp/0385529198
Boots @ 19: The agnostic Jewish people will soon throw off the chains of leftism and return to their God out of necessity. Anti-Semitism is growing worldwide, and will force Jews from their comfortable, secular lives in America, Europe and the rest of the world. Israel will soon be their only refuge.
6. Saltherring: “All that appears to be left for the world’s Jews is to return to their native soil…Israel…where they will be welcomed and defended by Almighty God and Israel’s economic and military might.”
Most Israelis would laugh at this! Israel is full of Jewish predators and Jewish prey. It’s survival of the fittest there.
simon holmes!
P.C. You consistently prove our point. 2006, 2007, 2008 as well as 2009, the Democratic reign. And it sounds silly when you try to blame it on Bush. Does Barney Frank and Chris Dodd ring a bell?
21 says, “Most Israelis would laugh at this! Israel is full of Jewish predators and Jewish prey. It’s survival of the fittest there.”
It will become much worse for them here and in Europe than it is in Israel.