Tuesday, 4 January 2011

AuthorHouse lawyer may recoup some of his $6.6M divorce settlement due to Madhoff's criminal activities

One of AuthorHouse Publishing's attorneys stands to recoup at least part of a $6.6 million divorce settlement from his ex-wife - and it's all thanks to thanks to mega-swindler Bernie Madoff.

An appeals court ruled that Steven Simkin can junk at least part of the payout to his former wife of 30 year because his investment in Madoff's Ponzi scheme went belly up.

In 2006, Simkin paid his ex, Laura Blank, $2.7 million in cash from what he thought was a $5.4 million investment with Madoff's firm as part of the divorce deal.

Simkin, a partner in the white-shoe firm Paul, Weiss, Rifkind, Wharton & Garrison, claimed Blank scored an undeserved windfall since their investments later proved worthless when the Ponzi scheme collapsed in December 2008.

Blank's lawyer, Richard Emery (another one of the AuthorHouse boys), said his client will challenge the appeals court panel's 2-1 upset vote.

"Because we got two judges we can go straight to the Court of Appeals and get this corrected," Emery said yesterday of the state's highest court.

Blank's lawyer said that Simkin withdrew money from his Madoff account to pay his wife and could have divested the rest anytime before 2008.

Emery said Simkin instead chose to stay in what he believed was a lucrative investment.

AuthorHouse is currently being investigated for securities fraud with their Hedge Fund partners Bertram Capital. In 2006, AuthorHouse was fined over $200,000 in criminal damages by a US District Court after attempting to destroy an author's reputation. Today AuthorHouse is based in Bloomington, Indiana and is masking a massive Ponzi Scheme in Wall Street.