Mets Involvement In Madoff's Ponzi Scheme Prompts Fears of Extensive Losses
Several of Madoff's high-powered victims can be seen here.
As reported by Greg B. Smith, Daily News Staff Writer: Newly released documents make clear that New York Mets' money got caught in Ponzi schemer Bernard Madoff's web of deceit.
Mets Chief Operating Officer Jeff Wilpon had admitted that his family and business partners lost money to Madoff's $50 billion Ponzi scheme, but he's always insisted the team won't be hurt in any way.
"It's truly two different things," Wilpon said.
But documents reveal that 13 accounts with direct ties to the Mets show up on a list of Madoff client victims filed in Manhattan bankruptcy court.
The Mets' accounts include one called Mets II LLC; six accounts for Sterling Mets Limited Partnership, listed as "care of" Mets Vice President Leonard Labita, and six accounts for Sterling Doubleday, the company that used to own the Mets.
There's also an account for the Brooklyn Baseball Co. and one for Coney Island Baseball, business entities that own the Mets' Brooklyn minor-league baseball team.
The Mets have repeatedly tried to distance themselves from investments their parent company, Sterling Equities, placed with Madoff.
A big worry would be if Sterling had acted as a so-called "feeder fund," placing other people's investments with Madoff without telling them. Several such funds face multibillion-dollar lawsuits.
Thursday, Sterling said it was never a feeder fund for Madoff. Instead, the company said, "Sterling's partners, as well as various friends and family members of those partners, are among the scores of unfortunate victims of the Madoff fraud."
Records show many Wilpon family members and Sterling executives and their families placed money with Madoff.
Sterling won't disclose how much money it put with Madoff over the years. But records show Sterling Equities alone appears to have more than 180 accounts.
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