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.
Earlier, we learned via Tuesday’s report from Ken Rosenthal of FOX Sports that Red Sox manager John Farrell could find himself on the hot seat given the team’s slow start and a couple of incidents with Dustin Pedroia and Drew Pomeranz.
Tim Britton of the Providence Journal spoke to Red Sox president of baseball operations Dave Dombrowski, who gave Farrell a vote of confidence. Dombrowski said, “We all have our pluses and minuses. But when I see some of the things we’ve talked about, I don’t know how you say that’s John Farrell’s fault. It’s not his fault that we’ve scuffled to pitch in the fifth spot with [Kyle] Kendrick and [Hector] Velazquez. The injury factors. Really in many ways, I tip my hat to our guys, led by John, that we’re in the position that we’re in right now. We’re three and a half out on May 24. There’s a long time to go. We haven’t gotten buried.”
Dombrowski added, “He’s our manager. He’s done fine. If I didn’t think that, then he wouldn’t be in his role.”
Farrell is signed through 2018 as the Red Sox exercised his ’18 option in December. That doesn’t mean the Red Sox can’t let him go, but given the lack of realistic options to step in and fill Farrell’s shoes and Dombrowski’s vote of confidence, it looks like the skipper has job security for now.
The Yankees announced that Jacoby Ellsbury left the game with a concussion and a neck sprain after making a great catch, crashing into the center field wall at Yankee Stadium to snag an Alcides Escobar fly ball for the first out of the first inning Wednesday night against the Royals.
Ellsbury was shaken up after the play, requiring the attention of manager Joe Girardi and trainer Steve Donohue.
Ellsbury initially stayed in the game and finished the top of the first inning. However, Aaron Hicks replaced Ellsbury in center field to start the top of the second inning. Ellsbury was batting sixth and did not have an at-bat prior to exiting.