Alison Cowan of the New York Times reports that the Bernie Madoff affair was not the first time the Wilpons have had to pay back money as a result of getting in early on a Ponzi scheme:
But for the owners, Fred Wilpon and Saul Katz, it is not the first time they have had their names and personal fortunes roughed up in a Ponzi scheme. An investment firm started by the two men had to pay back nearly $13 million two years ago when a hedge fund run by the scion of a wealthy New Orleans family collapsed in what was then regarded as one of Wall Street’s more brazen frauds.
I spent two years of my professional life defending a guy convicted of running a $50 million fraud, and part of that involved a number of mini-ponzi schemes and other assorted activities. One thing I learned is that a great number of the victims of such schemes are people who really like the idea of getting rich quick and who, either out of simple negligence or out of willful blindness, are eager to give their money to someone who promises quick and/or outsized returns on investment. Yes, some people are truly innocent victims, with the fraudsters creating elaborate schemes which withstand a reasonable amount of due diligence by the investor. But often times people are willing to skimp on the diligence because they are so dazzled by the prospect of boffo returns.
I have no idea where the Wilpons fall in all of this. But I do know that it’s not often that investors get burned by not just one, but two ponzi schemes. Especially allegedly sophisticated investors like the Wilpons.
The writing was on the wall, but the Yankees made it official on Saturday: Aroldis Chapman is no longer closing games for the Bronx Bombers. Comments from manager Joe Girardi suggested that the move is a temporary one, however, and he told reporters that Chapman will be utilized at “different points” in the game as the Yankees try to pinpoint the source of the left-hander’s struggles.
There’s no question that the flame-throwing southpaw has been off his game for a while, and his season 4.29 ERA, 4.3 BB/9 and 12.6 SO/9 hints at some of the issues he’s been facing. He imploded in each of his last three appearances, issuing a cumulative five hits, six runs and five strikeouts over just 3 1/3 innings. It seems plausible that the left rotator cuff inflammation that sidelined him several months ago has resurfaced, but the veteran lefty said Friday that he doesn’t believe any physical issues have caused his decline.
While Chapman works out the kinks in his mechanics, the Yankees will look to some combination of Dellin Betances and David Robertson to cover the ninth inning. Girardi wouldn’t commit to either reliever in the closer’s spot, however, and said he’d take it on a case-by-case basis depending on the match-ups in any given game. The long-term plan is still to reinstate Chapman, whenever that might make sense for the team.
“He’s been scuffling over the past 10 days, two weeks,” Girardi said. “I just thought for us to get him back on track, maybe the best way would be to move him around a little bit until he gets going. When we get him going like I believe he’ll get going, there’s a good chance I’ll put him right back in that closer’s role.”
The Nationals officially activated Stephen Strasburg off the 10-day disabled list, the team announced Saturday. They’ll pencil him into the starting lineup for their second set against the Padres on Saturday night. Strasburg is expected to assume Max Scherzer‘s roster spot after Scherzer landed on the disabled list with neck inflammation prior to Friday’s series opener. No other roster moves appear to be necessary for the time being.
Strasburg, 28, is finally looking stable after serving a 26-day stint on the DL with a right elbow nerve impingement. It’s the first serious injury he’s sustained since last August, when he missed 20 days with inflammation in his right elbow, and one the Nationals are taking seriously as they juggle multiple stints for their elite starters. He’ll enter Saturday’s competition with a 10-3 record in 20 starts, supplemented by a 3.25 ERA, 2.7 BB/9 and 10.4 SO/9 through 121 2/3 innings.
Elbow issues are nothing to be played around with, but Strasburg’s performance in his lone rehab outing relieved any residual apprehension the Nats might have had about his activation this weekend. He tossed 66 pitches for High-A Potomac, hitting 95 MPH with his heater and logging three hits, one run, one walk and five strikeouts over five innings. Club manager Dusty Baker is hoping for a similarly dominant start against the Padres, and told reporters that he’ll hold Strasburg to a performance count as the righty works his way back to a full-time gig.