The Wilpons are no strangers to Ponzi schemes

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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.

Rays trade Corey Dickerson to the Pirates

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Hey guys, guess what: another Rays post. This one is news, though:

The Pirates just announced that they’ve acquired outfielder Corey Dickerson from the Rays in exchange for reliever Daniel Hudson, minor league infielder Tristan Gray and cash.

Dickerson, as we’ve mentioned 10,000 times in the past few days, was DFA’d by the Rays for . . . reasons. The outfielder/DH hit .282/.325/.490 with a career-best 27 home runs and 2.6 fWAR in 629 PA last year, making the All-Star game. Which is really bad, according to some people who I still don’t totally understand, but what do I know? He’ll slide into an outfield situation in Pittsburgh that currently features Adam Frazier at the top of the depth chart in left.

Hudson is entering the second year of a two-year, $11 million deal, which likely explains why cash is coming back to Tampa Bay in the trade. In 2017 the lefty specialist posted a 4.38 ERA in 71 games, striking out 66 batters and walking 33 in 61.2 innings.

Gray was a 13th rounder in last year’s draft out of Rice. He’s a middle infielder who will turn 22 next month. Last year he played 53 games in the New York-Penn league.