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Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Wednesday, July 27, 2016

Yesterday, Italian football club Juventus F.C. announced signing of Argentine striker Gonzalo Higuaín from their rival club S.S.C. Napoli. 28-year-old Higuaín signed a five-year contract with the Old Lady for an Italian record transfer fee of €90 million.

Debuting at the age of 17 in 2005, Higuaín has made 329 league appearances and scored 191 goals. He joined Spanish capital club Real Madrid in 2006. Spending six-and-half seasons with Los Blancos, Higuaín has won the La Liga title there.

Higuaín — nicknamed Pipita — joined Napoli in 2013. While there he broke the goal scoring record set by Gunnar Nordahl of the Italian Serie A, netting 36 goals in 35 appearances. He helped Napoli qualify for the UEFA Champions League as the club finished second in the league.

In remarks to Gazetta World following Higuaín’s agreement to the contract, AS Roma captain Francesco Totti said, “Footballers today are a bit like nomads[…] They follow money and not their hearts.” 40-year-old Totti has played 25 years for Roma, signing a one-year contract extention last month.

Napoli’s president Aurelio De Laurentiis said, “Some believe that talking of a betrayal is an exaggeration, but I think differently. In this move there is the full meaning of a betrayal, which includes ingratitude.” ^{((it))Italian language: ?C’è chi dice che parlare di tradimento sia esagerato, e invece io penso il contrario, perché in questa scelta c’è il senso pieno del tradimento, che comprende anche l’ingratitudine}

Former Agrentine captain and Napoli legend Diego Maradona said, “This Higuain affair is hurting me because he is going to a direct rival like Juventus. But we cannot blame the player either. A player has a responsibility to himself and it is those fat cats of business that are grinning the most in this case. Nobody thinks of the fan.” ^{((es))Spanish language: ?Me duele lo de Higuaín, porque va a un rival directo, como la Juventus. Pero tampoco se le puede echar la culpa al jugador. Porque el jugador tiene su responsabilidad, pero los que hacen el negocio son los más felices. Nadie piensa en el hincha.}

Higuaín has been assigned the number 9 jersey.

Thursday, January 12, 2006

President George W. Bush made a stop over in two of the worst hit cities by Hurricane Katrina today. His stops included New Orleans, Louisiana, and Bay St. Louis, Mississippi.

The president made small speeches in both cities, with references to the many problems that still exist due to a lack of housing, the slow pace of Small Business Administration Loans, problems with homeowners insurance payments and the urgent need for bridge rebuilding.

“People in faraway places like Washington, D.C., still hear you and care about you,” Bush said standing in a gymnasium at St. Stanislaus College in Bay St. Louis. “I recognize there’s some rough spots. We’re going to work to make them as smooth as possible.”

Bush also recognized and promised that his administration is learning the lessons of its “all-to-slow” and “much-criticized” response to Katrina. “Obviously the federal response in parts of this devastated area could have been a lot better. We want to know how to make them better. We want to make sure that when there is a catastrophe of any kind, this government, at the federal level, is capable of dealing with it in conjunction with the state and local governments.We want to know how to make it better,” Bush said during his speech. “I just want to assure you, we are, we are.”

Bush went on to praise the city’s success in getting the essential utilities, such as, water and electric “mostly” on-line. He also said that federal tax incentives will encourage businesses to create jobs and promised that the new levy system will make the city “both safer and more attractive for investment.” He also added that all those things will help New Orleans and the rest of the Gulf, back into a “shining part of the South.” He also said “New Orleans is a great place to have a convention” and a “heck of a place to bring your family.”

Bush promises that the federal government has allocated 85 billion dollars for reconstruction efforts, $25 billion of which has already been spent on mostly the effort to clean up the debris and provide temporary housing for citizens.

Hurricane Katrina struck the south central U.S. on late August 29, 2005.

Katrina first made landfall in Miami, Florida on August 25, 2005 as a category one hurricane resulting in dozens of deaths in South Florida and spawning several tornadoes.

Katrina then passed over Florida and headed into the Gulf of Mexico where it strengthened into a massive category 5 storm.

She then made her second landfall on the morning of August 29, 2005, near Buras-Triumph, Louisiana with winds at 125 MPH and a central pressure of 920 mbar, a strong Category 3 storm.

Katrina is quite possibly the strongest hurricane on record ever, but estimating the size of storms from before the 1960s (the pre-satellite era) is difficult to near impossible.

As of January 4, 2006, the confirmed death toll from Katrina stands at 1,386.

Demographers estimate of New Orleans’ 400,000 residents prior to Katrina only 25% have returned.

Thursday, March 13, 2008

Family First Senator Steve Fielding arrived at Parliament today, dressed as a beer bottle to raise awareness of a bill he intends to move in the Senate today. Senator Fielding will introduce a bill to establish a nationwide refund scheme for bottles and cans.

A similar scheme has operated in South Australia since 1977.

Family First wants a rebate of 10 cents per container, while the Australian Greens want 20 cents.

Speaking to reporters outside parliament dressed as a beer bottle, the Senator said the legislation would reduce litter by 25 per cent. “There’s a message in this bottle.”

“I am no longer trash, I’m cash.”

“We should get the litter off the streets and off the creeks and into recycling – that’s good for the environment and good for the community”

“It’s a win-win and I can’t understand why nationally we don’t have a scheme,” said Senator Fielding.

Senator Fielding said that recycling not only reduced litter, but also consumes less energy than making new containers from scratch. “Recycling a plastic bottle saves more than 80 per cent of the energy used to make a bottle from scratch and recycling aluminium cans uses just five per cent of the energy used making a can from scratch,” said the Senator.

Senator Bob Brown, leader of the Greens said while there were environmental benefits from recycling, it would also create thousands of new jobs.

“This is a very good way of recycling and reducing energy because a lot of energy goes into making cans and bottles,” Senator Brown told reporters.

“It will employ tens of thousands of people across Australia.”

Friday, May 19, 2017

Yesterday, Zomato, a food ordering and restaurant finding company, announced security breach of more than 17 million accounts, via their official blog. A hacker operating under the alias nclay uploaded evidence to prove they had the stolen data — hashed passwords and emails — for sale, Hackread.com reported. Zomato later announced they contacted the hacker, who asked Zomato to organise a bug bounty programme.

The food ordering company, with 120 million monthly users, said the payment information of the users was not located with this data and was not leaked. Zomato said it uses PCI Data Security Standards.

As a security measure, all the passwords of the involved Zomato accounts were reset and all of the accounts were forcibly logged out from the application and website. The company said only hashed passwords were compromised.

Hashed passwords are encrypted and, per Zomato, every password had a different “salt”, for cryptographic salting was performed before hashing the original password. A “salt” is a random set of characters added before encryption to make decryption to obtain the original passkey more difficult.

The hashed password itself can not be used to access the account. In the blog post before contacting the hacker, saying “internal (human) security breach”, Zomato suggested this could have happened after a worker’s development account was hijacked. After contacting the hacker, and promising a bug bounty programme on Hackerone, they said, the hacker agreed and removed the stolen data which was put on sale on the dark web. Zomato said they are looking forward to working closely with the ethical hacker community on security vulnerabilities.