Bankruptcy trustee: Mets owners reaped $300 million in phony Madoff profits

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The bluff has been called, the documents have been unsealed and the allegations of just how deeply the Wilpons, Saul Katz and the Mets were in with Bernie Madoff is fairly staggering.  The entire lawsuit can be read here.

Among the allegations: the Wilpons, Katz, their families and their business reaped $300 million in fictitious profits. The team itself had 16 separate Madoff accounts, from which $90 million was withdrawn and used to help fund the team’s “day-to-day operations.”  And then there’s this, with “the Sterling Partners” referring to the Wilpon/Katz business:

“The Sterling partners were simply in too deep—having substantially supported their businesses with Madoff money—to do anything but ignore the gathering clouds,” the suit said. “Despite being on notice and having every resource at their disposal to investigate the litany of legitimate questions surrounding Madoff, the Sterling partners chose to do nothing.”

Not surprisingly, the Wilpons slammed the allegations today, calling them lies and strong-arm tactics and characterizing the trustee’s entire suit as “an abuse of power.”  Their statement:

“The conclusions in the complaint are not supported by the facts. While they may make for good headlines, they are abusive, unfair and untrue. We categorically reject them. We should not be made victims twice over—the first time by Madoff, and again by the Trustee’s actions.”

In other news, non-Mets related allegations suggest that at least one bank — J.P. Morgan — knew that Madoff’s whole operation was a Ponzi scheme.

Yes, they are just allegations.  But many of them — specifically those related to just how much money the Mets and the Wilpons lost to Madoff — are pretty darn specific.  And they can certainly be true even if the ultimate conclusion the trustee makes — that the Wilpons knew or should have known it was all a scam — is shown to be false.

We’ve played some back and forth here about what the Wilpons knew and that’s all fun and worth watching, but this is most  relevant for our purposes for the practical effect it will have on the Wilpons and the baseball team.  Given the thermonuclear nature of the allegations and the sheer amount of money involved, it’s hard to sit here today and say that the Wilpons will simply be able to sell off a quarter of it, cut a check to the trustee and continue on their merry way.  Indeed, such an assumption is now bordering on the naive.

Video: Todd Frazier hits into a triple play in his first at-bat at Yankee Stadium

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Newly acquired third baseman Todd Frazier spent his first five games with the Yankees on the road, playing once in Minnesota and four games in Seattle. He was set to take his first at-bat as a Yankee at Yankee Stadium on Tuesday night against the Reds. Unfortunately, things didn’t quite go how he likely expected them.

The Yankees quickly loaded the bases on consecutive singles from Matt Holliday, Didi Gregorius, and Chase Headley to lead off the bottom of the second inning. That brought up Frazier in his first at-bat at Yankee Stadium. He got ahead in the count 3-1 against Luis Castillo before hitting a sharp grounder to shortstop Jose Peraza. Gregorius went back to second base because he thought the ball had a chance to be caught on a line. Peraza stepped on the second base bag, then fired to first base for the double play. Votto then threw across the diamond to Eugenio Suarez at third base, catching Gregorius out in no man’s land. Holliday scored in the meantime, breaking a 0-0 tie, but Gregorius was eventually called out for running out of the base line in a run down.

Frazier entered the evening with just two hits (both singles) and one walk in 18 plate appearances as a Yankee.

Report: Brewers to acquire Anthony Swarzak from the White Sox

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Jon Heyman of FanRag Sports reports that the Brewers have agreed to a deal with the White Sox for reliever Anthony Swarzak. The White Sox will receive 3B/OF Ryan Cordell in return.

It’s no secret that the 53-48 first-place Brewers are on the hunt for relief help. While closer Corey Knebel has been great, the Brewers have been shaky leading up to the ninth inning as Carlos Torres owns a 4.65 ERA and Oliver Drake 5.05.

Swarzak, 31, has posted a 2.23 ERA with a 52/13 K/BB ratio in 48 1/3 innings this season. He can become a free agent after the season.

Cordell, 25, hit .284/.349/.506 with 10 home runs and 45 RBI in 292 plate appearances at Triple-A Colorado Springs. He’s the Brewers’ No. 17 prospect, according to MLB Pipeline.