Showing posts with label Mets Lawsuit. Show all posts
Showing posts with label Mets Lawsuit. Show all posts

Tuesday, September 27, 2011

Breaking News: Federal Judge throws out part of a $1 Billion Lawsuit against owners of the New York Mets

According to Reuters,  a Manhattan federal judge on Tuesday threw out part of a $1 billion lawsuit against owners of the New York Mets baseball team by the trustee seeking money for victims of Bernard Madoff's Ponzi scheme.

U.S. District Judge Jed Rakoff dismissed all but two claims by the trustee Irving Picard against the Mets owners, including Fred Wilpon, Saul Katz and others at Sterling Equities.

One of the claims alleges actual fraud. The other would require the defendants' claims against the bankruptcy estate of Madoff's firm to be subordinated to those of others.

A spokeswoman for Picard said the trustee had no comment pending a "thorough evaluation" of the opinion. Lawyers for the Mets owners were not available for comment.

Mario Cuomo, the former New York governor mediating the dispute, also had no immediate comment.

Sunday, March 20, 2011

Statement: Wilpons/Katz Fight Back in Court

Here's the press release issued on behalf of Fred and Jeff Wilpon and Saul Katz on the day they answer the $1 billion lawsuit against them with a filling in U.S. Bankruptcy Court.



GREAT NECK, N.Y., March 20, 2011 – In court papers filed today, Fred Wilpon, Saul B. Katz and their Sterling Equities partners (the “Sterling Partners”) began the process of defending themselves in court against the false allegations made by the Trustee overseeing the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). In the motion filed today, the Sterling Partners provide clear evidence that the Trustee’s amended complaint:

Saturday, March 19, 2011

Trustee Breakdown of One Billion Dollar Lawsuit

1 Billion
Madoff trustee Irving Picard is suing the Mets owners for $1 billion — including $300 million in alleged profits and $700 million they allegedly invested with Madoff and withdrew.

Picard is demanding:
$195M from Jeff Wilpon, Mets co-owner, COO
$168M from Mets CEO Fred Wilpon
$154M from Mets board member David Katz
$120M from Mets President Saul Katz
$434M in total from Wilpon family members
$357M in total from Katz family members

Read more: NY Post

Saturday, February 12, 2011

David Wright Thinks Madoff Situation will affect the Mets Clubhouse

New York Mets third baseman David Wright durin...
While most everyone connected to the Mets have denied that the situation will have any affect on the team, David Wright has admitted that probably won't be the case.
"I don't think that you can sit here and say that it's going to have no effect on the clubhouse when you're talking about kind of the family -- really, the head of the family. When something is going on with them, of course it's going trickle down," Wright said. "You have to understand that unfortunately there's some great parts about this business and there's some situations like this."

"As close as I've gotten with the Wilpon family, it kind of hurts to see them go through this and kind of be attacked the way they're being attacked. I've talked to them, and just wanted to let them know that we have their backs and we support them. I kind of feel for what they're having to go through. So hopefully this all works itself out and we can get back to playing baseball. But this is really the best remedy -- getting down here and getting on a baseball field."
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Friday, February 11, 2011

Investigation into the Mets financials could lead to open MLB books

PHILADELPHIA - OCTOBER 27:  Major League Baseb...
Ken Rosenthal and Jon Paul Morosi of warn that the current litigation into the Wilpons’ involvement in Bernie Madoff’s Ponzi scheme may result in an exposure of MLB’s financial records.

Here’s what one former club president had to say:
“This is bad news for the Mets and everyone in baseball. Because of revenue sharing, everybody’s a partner of everyone else in a greater way than ever before. The discovery process and document searches aren’t going to be confined only to the Mets. This will get back to MLB.”

Rosenthal and Morosi paint one hypothetical scenario where the Mets may have cut a check from a Madoff-funded account in order to satisfy an obligation to MLB, such as the revenue-sharing system. Irving Picard could then ask MLB to tell him where the money was applied.

You can bet that MLB would do their best to keep this information under wraps, but Rosenthal and Morosi write that it would become public knowledge in the event of a trial. This is one of the reasons why commissioner Bud Selig is reportedly hoping for a settlement.
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Reuters: Mike Repole steps up to plate for Mets, but wants cable share too

Mike Repole stepped to the plate after Mets owners, including chairman Fred Wilpon, said they might sell a minority stake as the trustee recovering money for victims of the Bernard Madoff fraud sued them to recover as much as $1 billion.

The native New Yorker Repole, co-founder of Vitaminwater and chairman of snack food Pirates Booty and healthy fast-food chain Energy Kitchen. Told Reuters that spending hundreds of millions for a 25 percent share in the team needed to include a stake in SNY, which Wilpon had said would not be included in a fund-raising deal.

"This is a team I rooted for my whole life," Repole said in a telephone interview Friday. "I just think it's going to be very difficult to find a minority partner the way the deal is being structured."

"It's a lot of money to put up to have no real control," he said. "It would be cheaper to get four front row season tickets than 25 percent with not much say.

"It's a hard deal to sell to anybody when it's just the ball club and not the network."

Saturday, February 05, 2011

Bloomberg News: "With Madoff, the Mets owners were simply in too deep"

I am just reading more about this sad, but true story about the Wilpons partnership with Madoff..

Here is a great article from Bloomberg News by 

Bayou Accord Case Model for Any Deal With Madoff Trustee. 

It also

"With Madoff, the Mets owners were simply in too deep -- having substantially supported their businesses with Madoff money -- to do anything but ignore the gathering clouds,” according to Picard’s complaint. “Sterling performed no diligence on Madoff in response to any of the various red flags to which it was exposed.”
"The trustee’s lawsuit is an outrageous ‘strong arm’ effort to try to force a settlement by threatening to ruin our reputations and businesses which we have built for over 50 years,” Fred Wilpon and Saul Katz said yesterday in a statement.
They called the allegations in the complaint “abusive, unfair and untrue.”
"The Sterling partners had more than $500 million in their Madoff accounts at the time of his failure, their lawyers said in a statement yesterday. Wilpon and Katz said that none of the Sterling partners ever suspected Madoff was running a fraud."
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Friday, February 04, 2011

NY Times: Suit Says Mets Owners Ignored Warnings on Madoff

According to the NY Times, a lawsuit brought by the trustee for the victims of  Bernard L. Madoff's multibillion-dollar Ponzi scheme accuses the owners of the Mets of being so enamored of the enormous profits they earned while investing over decades with Mr. Madoff that they ignored repeated and specific warnings that he might have been operating a fraud.

The lawsuit, unsealed in federal bankruptcy court in Manhattan on Friday morning, contends that the team's owners, Fred Wilpon and Saul Katz, used the profits from their investments in Madoff to establish personal fortunes, create dozens of family trusts and financially fuel their array of businesses, from the Mets to real estate to the creation of a cable sports network.

At various times over the years, as their investments only widened and deepened, they were blind to what the lawsuit calls a litany of alarms sounded by those close to them, by fellow investors and by financial institutions.

Read More:
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