The magical ‘Get Out of Jail Free Card’ (Part 2): Leona Helmsley, Bernie Madoff

Leona Helmsley

HelmsleyLeona Helmsley was painted in the media as a shrew, and was branded that for supposedly having said “We don’t pay taxes. Only the little people pay taxes.” This goes back to 1989, and so may not be fresh material for most readers here, but is still useful to try to understand.

She claimed not to have said that. The words were attributed to her by a former housekeeper, and are not credible – that is, even if Helmsley held that opinion, she would not have shared it with one of the “little people.” The Wiki footnote on that quote is “11.”* Yet the words became her brand. It was almost as if she was railroaded.

Two other names pop up in this affair, Alan Dershowitz, and Rudy Giuliani. Both names raise red flags, as Dershowitz, in addition to being Noam Chomsky’s foil, would be one of the actor-lawyers in the OJ Simpson show trial (to be covered in another segment), and Giuliani, then a United States Attorney, would turn up as mayor of New York on 9/11/2001, surely a trusted insider to that gigantic hoax.

So what’s up with Helmsley? People did not like her. My first instinct when I find someone so utterly unlikable is to try to like that person. Surely there is more to her than her public image. Though a millionaire in her own right, her husband Harry Helmsley divorced his wife of 33 years to marry her (footnote 8). She earned a bad reputation during the time when rental units in New York City were being converted to condominiums, often involving displacement. She seems to have failed in that venture, and so moved on to become a hotelier and advertising icon, called “The Queen” who wanted nothing but the best for her tenants. Later is was changed to “Queen of Mean.”

In 1988 the Helmsley’s purchased a mansion in Connecticut, and during the remodeling process were said to have charged the remodeling expenses (a personal residence) to their business, aka, tax fraud. There was also a lawsuit for failure to pay the little people, the contractors, that they lost. It is during this period that the prospect of jail entered the picture. Rudy Giuliani, then United States Attorney, chose to publicly prosecute the Helmsley’s for tax fraud. The question is, why?

I have long assumed that Helmsley’s statement that only little people pay taxes was her undoing, for even it if is true, things like that are not to be said in public. Once those words hit the newspapers, her fate was sealed. She had to be prosecuted, otherwise word would get out that rich people don’t pay taxes. But suspecting now that she did not say that, I have to revise. While it is easy to conclude from this affair that people did not like her, there is also this gem in Wikipedia:

“She was forced to give up control of her hotel empire, since most of her hotels had bars and New York does not allow convicted felons to hold alcohol licenses. Mrs. Helmsley spent her final years at her penthouse atop the Park Lane Hotel.”

Could she have been driven out of the hotel business by others who wanted to take control of the business from her and her ill husband? (He died in 1997, and during the public trial was ruled unfit to stand trial. I would take a stab and suggest that dementia had set in. Leona had to face the jackals alone.)

Did she really go to jail? Her Wiki page is loaded with red flags, so let’s explore further: As noted before, we have the presence of Giuliani and Dershowitz, two men who frequently turn up in public hoaxes. So the prosecution and defense could not have been terribly serious. (Dershowitz was used later to get her sentence reduced, after her conviction.)

“On August 30, Helmsley was convicted of one count of conspiracy to defraud the United States,[14] three counts of tax evasion,[15] three counts of filing false personal tax returns,[16] sixteen counts of assisting in the filing of false corporate and partnership tax returns,[16] and ten counts of mail fraud.[17][18]”

That all adds up to 33 counts by the way, but all save 8 of the convictions were dropped. She did collapse in public when it was “clear she was going to prison.” She may have realized more than just that – the extent to which she had been framed and betrayed. Eventually, her sentence was reduced to 19 months, and she was ordered to appear for incarceration on 4/15/1992. We are told she was under control of the Federal Bureau of Prisons, and that BOP number was 15113-054. For those who pay attention, those digits add up to an ’11’ (1+5+1+1+3) and ‘9’ (5+4), which also reads as 9/11, a spook marker. My take: her prison sentence was fake.

After prison she lived alone, and kept in touch with a few friends, including the Noriega family. That is an interesting touch, as Manuel Noriega is on my list of people with the “Get out of Jail Free card.” He was a CIA agent used as a public whipping boy in justification of the 1989 US attack on Panama, and who was sentenced to jail in Florida  under some strange rendition of law where the US  is allowed to jail leaders of other countries in its own prisons. In other words, he too never went to jail. She was also close to the shoe lady, Imelda Marcus (an odd parallel), and to Rick Hilton, father of Paris Hilton, or so we are told. (Straight has a theory that Paris is not really related to the Hilton family, and is just a hired actress. Otherwise they would not tolerate her debauchery and shenanigans.)

All very interesting, but not a smoking gun. My best indication that Leona never served a prison sentence is that she was at the minimum security facility at Danbury, Connecticut, the same one that was the first choice of Martha Stewart. I would assume that “inmates” there come and go as they please, only showing up for photo opportunities. I could be wrong, but fail to see the point of having a prison that has so little security that it is considered a picnic. Why not just let them go free?

Based on what Wikipedia says and what it quietly  flags and what it does not say, I suspect that word got around that Harry Helmsley was suffering dementia and was vulnerable. Since he left management of his affairs to Leona, and because she lacked his expertise, the jackals circled and attacked.

Sure, she didn’t pay her contractors, she cheated on her taxes, but in that class such behavior is common and ignored.

This was an opportunity. They hired the fake prosecutor Rudy Giuliani to go after her, and bribed Elizabeth Baum, the former maid, to claim she made the “little people” comment, which was then put through a megaphone of the controlled national media. She possibly faced real jail time, and realized she was beaten.  She stayed down. Alan Dershowitz offered to help, and Leona accepted not realizing he was actually on the other team. She lost control of the lucrative hotels and bars, the whole object of this affair, but never spent a day in jail.

Her public collapse may have been real, once she realized how badly she had been trounced by all of these actors and charlatans, some of them wearing robes.

Bernie Madoff

MadoffMy first indication that Bernie Madoff might actually be in jail is that the people he supposedly scammed are some of the wealthiest and most powerful people in the country. It could be that was his undoing.  If he pulled his stunts on little people, doing telephone marketing, selling Amway products or perhaps pharmaceutical products, he’d be a free man today. But he is worth a closer look.

There is a problem. His Wikipedia page is littered with spook markers, so many in fact that I had to print the entire 20 page report to highlight them all. I came up with 89. Sometimes a number is just a number, but this whole Madoff business reeks of monkey business. His crimes are so flagrant and occurred over such a long period without detection (1992-2008) that I have to ask: Did they happen at all?

Madoff was convicted of running a Ponzi Scheme. Those are not complicated, and are in fact easy for regulators to uncover once tipped, as they leave a rich paper trail. People invested with him, and he put the money in his personal Chase Manhattan Bank account, and when new investors came along he used the funds from original investors to pay off old ones. In the meantime, he had fraudulent account statements prepared by his staff for his clients. His auditing firm consisted of one accountant and three other people.This stuff cries out “Look at me! I’m a crook!” but apparently no one noticed.

He was investigated six times by the SEC after 1992, and nothing was uncovered. According to Madoff himself, all investigators ever had to do was check the records of the Depository Trust Company, a central securities depository. I’ll add another idea – check his personal bank account. Even I would have done that.

All of this points to two possibilities, not necessarily mutually exclusive: One, that securities regulation in this country is a joke, and two that there was no fraud to uncover.

I take it as a given that Wall Street is more powerful than Washington, and that the SEC is a paper tiger. In news, movies and television, investors cringe at the thought of “The Feds,” poking around their business. In real life, not so.

But even so, the fraud described in the Bernie Madoff case is so open and obvious, so easily discovered, that I have to suspect it was made up. We are told that Bernie’s sons turned him in when he confessed to them that he was running a Ponzi scheme, and that the FBI immediately arrested him. I doubt it. Neither of those things happens on Wall Street.

But why publicize the (fake) largest Ponzi scheme in history? Remember the time – 2008/09. The market had crashed. Millions of people suffered hundreds of billions, if not trillions in total losses. Perhaps, just perhaps, it was decided that regular people needed to know that rich people suffered too. So they threw us a bone. Literature is now littered with Madoff victims – the Wilpons, Larry King, Zsa Zsa Gabor, Steven Spielberg, John Denver’s daughter. I have trouble with such collective stupidity, as if all of these people lacked competent investment advice at a time when we are told that many on Wall Street were suspicious of Madoff. Something smells.

Is Bernie in Jail? Let’s see: He was convicted of 11 felonies, of defrauding his clients of almost $65 billion. Madoff claimed sole responsibility, falling on his sword [footnotes 62 and 101]. He said he knew it was inevitable he would be exposed [footnote 110]. He was convicted on March 12, 2009 [3rd month and 1+2, or 33, and 2+9 for 11). He was sentenced to 150 years in prison [footnote 111, again]. His wife said the man who did the crimes was not the man she knew all those years [footnote 117]. That is very possibly true.

Madoff was placed in the Federal Correctional Institution, which Wikipedia tells us is 70 miles [110 km] from Manhattan. Why they choose to share the metric measurement of distance is anyone’s guess, but then we learn he was transferred to the Federal Correctional Institution Butner Medium, 45 miles [72 km] north of Raleigh. His Bureau of Prisons Register number is 61727-054, or a 6, 8, and two 9s.

He’ll be released on November 14, 2139. That’s absurd, useless information, but note that 2139 is 3 (2+1), 3, and 9 (3*3). Maybe that is the point. And anyway, as he was sentenced to 150 years his release date is 2159, but Wiki tells us that 2139 reflects time off for good behavior. Point taken. That’s why they strained to use that number.*

Well, the numbers could go any direction, but they usually seem to indicate spooks behind the scenes. They predictably fall in this order time and again. Is Bernie Madoff in jail? I doubt it. I doubt any crimes as described by Wikipedia were committed, and suspect that the whole affair was drummed up as a salve for the public, angry at what had been done to us by the bankers. Or to put it another way, if those crimes were committed as described, our regulatory structure in this country is being run by Mrs. Olsen’s second grade class. That is indeed possible.

One more thing about Bernie: Wiki tells us he started out as a penny stock trader working the pink sheets, and that his seed investment was $5,000 ($40,000 in today’s money) that he earned working as a lifeguard and sprinkler installer. It was rags to riches. Oh yeah … one more thing – his father-in-law also lent him $50,000 ($400,000 in today’s money) to help out. What is it with these people? Wouldn’t any of us like $400K in seed money for a startup venture? How many of us have those kind of connections? Bernie was riches and never for a day rags.

____________________

*A reminder on these numbers, the primary spook markers that I notice are 8, 11 and 33. They are very clever about how they insert them in text, so that other spooks will recognize them and ordinary people not. So $65 billion is 11, footnotes 101 and 111 are merely enbedded 11’s, and the BOP number is 3+3 (33), 8, and two 9s, or 2*3 and 3*3. Et cetera. 

19 thoughts on “The magical ‘Get Out of Jail Free Card’ (Part 2): Leona Helmsley, Bernie Madoff

      1. I abashedly retract an immature comment that should not have been made in the first place. The years take their toll on all of us, even Brad Pitt doppelgangers like me!

        Like

      2. I think during the time when she was being pilloried in public, they also went to great lengths to smear her by using the worst photographs available. She endured a lot and was often unable to hide her emotions. I would have been seething in anger to come to understand that I had been circled and trapped as she was. It would have shown on my face.

        Like

        1. I remember thinking at the time that she was turned on by the other elites in order to take her property or get rid of her for some reason or other. But I had no understanding of how things work back then, and your explanation makes a lot of sense. She was really thrown to the wolves, and made a national story when it really had little relevance except as some sort of psyop.

          That was also around the time Spy Magazine came out, which was funny even for someone who new nothing about the goings on in New York City. They would beat up on Trump mercilessly, and no doubt were stage setters for the long term plan.

          Have you added Jim Bakker to the list? That one should be rich, as the surface reason for his conviction made no sense. He was merely overbooking his hotel, just like they all do.

          Like

  1. Wesley Snipes and Martha Stewart also seem to be high-profile “convicts” of crimes overlooked every day in NYC. Target audiences, like target market for any product, I suppose.

    Like

  2. Nice post. Agree with all your observations. I do think part of the Madoff psyop was also to give people the impression that when Wall Streeters engaged in fraud, they would be brought to justice. Since other people were not prosecuted, it implies there was no other fraud going on. I think with the name they are having a little joke: He almost “Made Off” with everyone’s money…

    Like

    1. I started out thinking he was a Madeup person, but turns out not. He might have been selected for that name, who knows. He was close to retirement anyway. There were other jail sentences, a suicide by his brother … more research is needed, but I am satisfied that Bernie was an actor, nothing more.

      I look forward to your Wall Street paper.

      Like

  3. When I was in college in the early eighties, I would park my car in the shadows of some tower apartments right up against SF State University- These properties and the surrounding bungalows were said to be owned by the Helmsleys- That’s interesting in light of your post which I will now counter with a slightly different take: Frisco is Hearst country and they are abetted by people like Walter Shorenstein and his survivors and dowagers like Charlotte Swig Shultz, wife of former Reagan Sec. of State, George Shultz-
    As nothing in this town happens without the filthy rich’s say so, I suspect the Helmsleys were invited to share in the post war Frisco real estate boom as part of a super elite quid pro quo- The assumption is that the Helmsley fraternity in New York had given other regional big wigs a taste on their turf and the Park Merced complex abutting SFSU was swag delivered in kind-
    With Harry drooling out, I suspect the swag was reabsorbed by a larger council of which Harry was long a member of and his replacement wife was used to create a dramatic fiction to occlude the true nature of the divestiture of the holdings; holdings that are never in whole owned by one individual- I am referencing here the old concept of the Venetian “Fondi”, the group funds/assets of the ruling oligarchs which remain forever in arm’s reach should someone, in this case Harry, be inconvenienced by his mortality- Because of dementia, a unique plan had to be constructed to distract rather than have the estate assets go to “family”, which for some reason wasn’t possible in this case-
    From Wikis Leona page: “On March 31, 1982, Helmsley’s only child, Jay Panzirer (42)*, died of a heart attack resulting from arrhythmia.[9] Her son’s widow, who lived in a property that Helmsley owned, received an eviction notice shortly after his funeral. Helmsley successfully sued her son’s estate for money and property that she claimed he had borrowed, and she was ultimately awarded $146,092.” (Two “11’s”)
    *42 is a number of violent change in several systems-
    I’m not against the possibility of Leona being eaten by sharks, but I think it more plausible in the context of hidden power that she was hired to run interference for Harry in ways he simply couldn’t- I will also assume her hiring as a wife was approved by the council- The whelp of a “hat maker” and “homemaker”, and with several aliases, probably always knew her rank and the public pillorying was designed specifically because she could sell that Queen of mean act so well, as well, she could also “take it” when the fictitious hammer fell-

    Like

    1. Tyrone, I am also a big believer in the idea of a council of patriarchs/matriarchs. The concept of fondi may also be real and very important. But I would go further. I believe the documentary Uroko (https://www.youtube.com/watch?v=yzdomBX8U0w) pointed out that one of the J P Morgans had a smaller fortune than what people believed, he was more like a manager of a large fortune. Also the oligarchs probably have to put aside some of their own resources, so that the council can use these resources when needed. The younger oligarchs are probably required to do various jobs in order to reach higher positions in the council. I actually believe they are very collectivist. Many people believe that these elites have large egos and because of that they cannot cooperate. The elites probably believe that they are superior to the average citizen . But most people don’t know that these elites are usually connected by blood. The council is family and the safety of their own existence probably depends on the council (so fools with very big egos probably cannot reach a high position on the council).
      In the movies the oligarchs/elites are usually random people that achieved their position through work/ being cunning/intelligence/luck etc.Many times they present stories of people that were born poor but became elites(good or bad). In reality the elites belong to a few families. Mathis’ papers provide examples of fake biographies that try to obscure the ties between the elites. History books also tries to blind us with the fake biographies of great kings, emperors, tyrants, dictators and other great individuals. They forget to tell us that these great individuals are just the face of a council of oligarchs.

      Like

  4. There are always a few Gordon Gecco type characters ready on tap to serve up during every artificial market adjustment. You had Boesky and Milken in the 80’s (Giuliani). You had the fake Enron scandal for the Dot.com bust. And you had Madoff for 2007/08. All frauds whose back stories make sense only as scripted fiction. The story calls for a bad guy- and they provide a couple every time.

    The HBO documentary on Warren Buffett was comical. The man is a complete fiction- cobbled together with the strands of other fictional tycoon’s of the past like Carnegie.

    Like

  5. This project keeps expanding … not that I am complaining. I love this kind of work. I had forgotten about Enron and Ken Lay (fake death), Jeff Skilling and Fastow (fake jail time). Boesky and Milken smell equally fake. Working as a CPA all these years, I have long known that the auditing environment is a huge scam, and that most auditors are clueless about how ineffective their own work is, or know to STFU, as they are paid by the very people they are supposed to be holding accountable. I have suggested at various times, sitting around a lunch table with other people in the second oldest profession, that auditing of publicly traded corporations is a natural government function, only to be greeted by cold stares.

    Like

    1. “I have suggested at various times, sitting around a lunch table with other people in the second oldest profession, that auditing of publicly traded corporations is a natural government function, only to be greeted by cold stares.” The same can be said for debt rating agencies since their fees are paid by the debt issuers rather than the investors buying the debt.

      Liked by 1 person

    2. Good call on remembering the crooked E! Lay was promoted in a rapid fire fashion that would make Himmler blush. Even Nixon chipping in to assist in the Schwartz. Florida Gas it would seem was shipping more than just NG in their pipelines. Most if the players were inserted from there after the pentagon. Just in time for the oil embargo. His bio is similar to all the others sans being adopted by a stepfather and being twins. A very transparent swindle non the less. Too bad the people who lost their life savings couldn’t find an attorney with an IQ north of room temperature. A fine MM or POM future project.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s