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.

Mets acquire Brooks Pounders from Indians

Brooks Pounders
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The Mets have acquired right-handed reliever Brooks Pounders from the Indians for cash considerations, the teams reported Saturday. Despite his limited and varied major-league experience, Pounders has put up intriguing numbers at the Triple-A level and is expected to step into a not-insignificant role with the Mets’ relief corps.

Pounders, 28, signed a minor-league deal with the Indians last December and pitched to a healthy 2.31 ERA, 2.8 BB/8, and 11.8 SO/9 over his first 35 innings in Cleveland’s farm system. He hasn’t taken the mound in a major-league setting since 2018, however, when he appeared in 14 games with the Rockies and labored through a much more unsightly 7.63 ERA, 1.2 BB/9, and 10.0 SO/9 across 15 1/3 frames. Still, his peripherals are promising, and there’s no question the Mets could use some help bolstering a bullpen that currently ranks eighth-worst in the league with a collective 5.31 ERA and 0.2 fWAR.

In subsequent roster moves, fellow righty Tyler Bashlor was sent back to Triple-A Syracuse for the second time this season, while Héctor Santiago was designated for assignment, Tim Peterson was optioned to Triple-A, and Chris Flexen was recalled from Triple-A. It’s been a less-than-ideal campaign for Bashlor so far this year: through 13 relief appearances for the club, he lost control of a bloated 5.23 ERA, 5.4 BB/9, and 9.3 SO/9 in 11 2/3 innings and had not been utilized in a game since June 2.