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Madoff Whistleblower Lawyer Calls For New Finance Court
by Paula Schaap ,Senior Reporter , March 9, 2009

The lawyer who represents Harry Markopolos, who tried to tell the Securities and Exchange Commission that something was amiss with Bernard Madoff’s business, is part of an international movement calling for an international financial court.

Gaytri Kachroo, a partner with law firm McCarter & English, said Monday that the Madoff Case Global Alliance of Law Firms is proposing that an International Financial Court be established as an alternative forum for victims of financial crimes.

Kachroo is Markopolos’ long-time lawyer. She helped him prepare his February Congressional testimony about his decade-long attempts to persuade the SEC to investigate Madoff. The SEC’s head of enforcement, Linda Thomsen, resigned after Markopolos testified that the agency turned a deaf ear to his whistle-blowing.

The Global Alliance wants the new international court to be organized with the cooperation of international organizations like the United Nations Commission on International Trade Law (Uncitral), the International Monetary Fund and the World Bank. It is taking its proposal to the Group of Twenty (G-20) Finance Ministers and Central Bank Governors that will meet in London April 2.

Claire Kelly, a professor at Brooklyn Law School and an expert on international law, said that Uncitral could be an effective partner in coping with issues of fraud that transcends national boundaries.

Uncitral has “had remarkable success in generating norms to deal with international commercial law problems,” Kelly said.

However, when a new court is proposed, then issues of jurisdiction arise, she said.

“You have to get people willing to grant jurisdiction to that [international] court,” Kelly said. “I assume they will have a court that will divvy up whatever assets the perpetuator will have left. If those assets are in Spain, a Spanish court, or the EU more generally may want to divvy them up.”

The Global Alliance includes about 40 law firms from around the world that represent victims of Madoff’s alleged $50 billion fraud, including banks, individuals and hedge fund firms, according to its president Javier Cremades of Spanish law firm Cremades & Calvo-Sotelo.

The group plans to meet with members of Congress to advance their plan. Cremades said that a meeting had already been set up with Barney Frank (D.-Mass.), who chairs the House Financial Services Committee.

Kachroo and Markopolos are also set to have a private meeting with the new head of the SEC, Mary Schapiro.

  
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4 Comments
Post your comments below.
POSTED BY Paula Schaap at 3/9/2009 3:02:12 PM

Dear Ms.Schaap I am in favor of an international financial court as you have reported. Here is why I am in agreement. In the days not to long ago in both the United States of America and here in Canada the rule of law was - you steal a man's horse your were either shot or hung. This was because a man's horse in most cases was a goodly portion of his wealth, let alone his transportation. Today, if a person were to rob a convenience store with a gun, real or fake, they may walk away with a few hundred dollars or a thousand dollars or get 3-5 years at a medium to maximum jail center. A Bernard Madoff who steals and embezzles billions will in all probability get less of a sentence through a negotiated plea and go to motel millionaire for a couple of years as punishment. These two contrasting scenarios illustrate the differences the legal system views the wealthy and the rest of society. Although Mr. Madoff did not use a weapon to steal his billions, he should be held responsible as though he had. Should some poor soul who is elderly, has lost every thing and were to commit suicide because of Madoff's greed - then Madoff should be treated as though he pulled the trigger. Perhaps such a court system would be a deterent to those who are considering following Madoff's in footsteps. The international financial investment system was unable to catch Madoff's Ponzi scheme for 30 some years. Is it that easy to fool the SEC regulators? If so, how many more are there out there undiscovered? Now is the time for the investment community to regain investor faith through enacting new regulations and systems to protect their clients from criminals. Your truly Brian A. Mitchell
POSTED BY Brian A. Mitchell at 3/10/2009 10:36:25 AM

Brian, I like your first example better. Madoff should be hung or shot, preferably both.
POSTED BY killmadoff at 3/10/2009 1:37:07 PM

Congress had removed or Ignored so many safeguards from the Banks and Wall Street or turned a blind eye....So that a "Bernie Madoff" was bound to appear.Wall Street the SEC, Fanny and Freddie Mac Congress and Big Money are the cause of all this Corruption, greed and Fraud..And it does not help any if Congress is asleep at the WHEEL..If you or your Company make Donations during Elections you gain Access to Politicians and Favors..Which is also a kind of "EARMARK".. The Problem is Systemic and had to produce a "Madoff"..The Greed and Corruption runs in cycles..The Love of Money is the root of all Evil... It can never be stopped..If you have friends in High Places or make $$$ Donations at the Political Alters you gain access.. Politicians are not the most Honest People in the World by the Very Nature of the Political Procss.Money and Greed always RULES no matter what LAWS are passed you can never end GREED & Corruption...... that produce people like Bernie Madoff.It pays to have benefactors in High Places and there is always a "Cover Story". The LAst big Financial Scandel in the United States decades ago was the Corporate "Leverage BuyOuts"..initiated by Wall Street and Paul Bilzarian, and the Crown Zellerback Corporation and Other Financial operators..Bilzarian had a 10 Million Dollar Home built in Florida before some Whistle Blower ended it all for Him.. Greed, Money and Politics are strange Bed Fellows it will always be that way.There will never be an end to the Greed, Political Corruption, or Judicial Corruption etc...Especially if the Government agencys are filled with Political Croneys..and Political Elections require so much Money..Greed isjust part of the Human Condition.And Everything has a Sale Price.attached.. ADG...3-10-09
POSTED BY Anthony DiGiesi at 3/10/2009 1:43:16 PM
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