WCBJ
WESTCHESTER COUNTY
BUSINESS JOURNAL
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December 10, 2012 | VOL. 48, No. 50
White Plains companies to pay $24M in Madoff case BY JOHN GOLDEN jgolden@westfairinc.com
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wo founding partners of a White Plains law firm and the investment management companies and funds they ran from their downtown office have agreed to pay $22 million of a $24 million settlement of claims by the bankruptcy trustee in the Bernard Madoff securities fraud case, even as the defendants themselves claim to have been victims of the nation’s largest Ponzi scheme. The attorneys, Joel Danziger and Harris Markhoff, founded Danziger and Markhoff L.L.P. in 1960. Their business relationship with Madoff began in the early 1990s, according to court documents, when they started a series of funds managed by Beacon Associates Management Corp. and Andover Associates Management Corp. at their law firm’s 123 Main St. office. The Beacon and Andover funds invested heavily and at times exclusively in Madoff’s company until its collapse with Madoff’s arrest in December 2008. A rendering of the proposed Memorial The settlement agreement, which also includes two investSloan-Kettering Cancer Center in Harrison. ment managers and their companies and investment funds on Long Island and in Syracuse with whom Danziger and Markhoff worked to place clients’ funds with Madoff, was approved Dec. 4 by U.S. Bankruptcy Judge Burton R. Lifland in Manhattan. It came four years after Madoff confessed that his Bernard L. Madoff Investment Securities company and its consistently high returns to investors and fund managers were a multibillion-dollar fraud. Ave., formerly home to Key Ford, having bought the property Madoff had approximately 4,900 open client accounts in three months ago. The developers also bought properties adja- December 2008 and more than 8,000 clients over the course cent to the dealership and now own 90 to 96 Westchester Ave. of his criminal scheme. About $17.3 billion in losses have North ast Eleva-on Building Entrance The Keystone SqureEproject will feature–30,000 square feet been claimed by his former customers. The massive fraud has of retail and a restaurant and either a 100,000-square-foot spawned lawsuits to recover lost investments in courts across senior living complex or a hotel. The project is in the very early the country in addition to the well-publicized liquidation of stages and no plans have yet been filed with the city of White Madoff assets pursued in U.S. Bankruptcy Court by trustee
Adaptive reuse in Harrison page 12
Developers pitch mixed-use plan for White Plains BY SAM BARRON sbarron@westfairinc.com
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he developers behind the Rivertowns Square project in Dobbs Ferry are heading to White Plains. Armonk-based Saber Real Estate Advisors L.L.C. and White Plains-based Chauncey Station Partners L.L.C. are developing a $40 million mixed-use project at 80 Westchester
PROPOSED BUILDING
Developers, page 6
Madoff, page 6
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