Frank Avellino, who has been raising money and investing with Madoff for over four decades, is being sued by his housekeeper. She claims Avellino told her to invest her money in a fictitious firm called Kenn Jordan Associates, but that one day Avellino informed her live savings were all gone.
That day was December 1, 2008.
That’s 10 days before Bernie Madoff was arrested.
So we can think of three explanation for what’s going on here.
1. The housekeeper is lying. So far it’s all been her side of the story, and maybe she just happened to make up the name Kenn Jordan Associates, which, oddly enough, was the charitable firm that Avellino once managed. Anything’s possible.
2. Frank Avellino had his housekeeper’s money in a totally different fraud or bad investment that just coincidentally collapsed right around the same time as Madoff’s scam collapsed. Of course, this would be out of character for Avellino, who’s obviously spent years and years giving money to Madoff in one manner or another.
3. The housekeeper’s money was actually placed with Madoff, and Avellino knew that the Ponzi had collapsed well before anyone else. Before Peter Madoff. Before the Noels. Before the sons. Before the FBI.
Which do you think sounds the most likely?
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