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Feb. 07, 2009
Copyright © Las Vegas Review-Journal

Investors with ties to Las Vegas appear on Madoff's list

Attorney, casino chief among clients

By JENNIFER ROBISON
LAS VEGAS REVIEW-JOURNAL

Lyle Berman
Madoff client co-founded Grand Casinos, which owned the Stratosphere in the 1990.

A massive hedge fund failure on the East Coast has ensnared nearly 20 investors with Las Vegas ties, including a prominent attorney and a one-time casino owner.

A list filed in federal bankruptcy court Wednesday reveals that 17 people who live or do business in Southern Nevada invested money with financial adviser and securities trader Bernard Madoff. Among them: high-profile attorney Sam Lionel and former Stratosphere owner Lyle Berman.

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    • The client roster doesn't include details about how much each investor placed with Madoff, and locals seemed unwilling to discuss the details of their financial exposure in the case.

    Lionel's assistant said he was unavailable Friday afternoon to comment. Berman didn't return phone calls or e-mails to his Minneapolis office. Another half-dozen or so local investors either didn't return phone calls or declined to talk about the Madoff situation.

    Lionel founded the 42-year-old Lionel, Sawyer & Collins, one of Nevada's biggest and most powerful law firms. Lionel has represented some of the Silver State's best-known business figures, including Flamingo builder Del Webb, casino investor Kirk Kerkorian and Las Vegas Sands Corp. Chairman Sheldon Adelson.

    Berman co-founded Grand Casinos, which owned the Stratosphere from 1994 to 1998, when the company missed some bond payments and lost control to financier Carl Icahn. Grand Casinos spun off Lakes Entertainment, where Berman is chief executive officer. The Minnesota company owns five casinos. The poker world also knows Berman well: He's won three World Series of Poker bracelets and placed fifth in the series' H.O.R.S.E. World Championship in 2008. His lifetime poker winnings total nearly $2 million, according to his profile at PokerPages.com.

    Though Berman's business is based in Minneapolis, the Madoff roster lists his address as 1 Hughes Center, where luxury high-rise condominium community Park Towers is located.

    Madoff remains under house arrest in his New York home while federal prosecutors investigate him for securities fraud. They allege Madoff ran a Ponzi scheme that might have bilked as many as 13,500 investors of $50 billion over a period of many years, including $17 billion under management in 2008. Authorities accuse Madoff of taking money from new investors to pay off former investors.

    The scheme came to light in December, when jittery investors began pulling their money out of Madoff's fund to protect their assets from further losses in the stock market.

    An attorney serving as a trustee in the liquidation of Madoff's companies told Newsday on Thursday that a preliminary search for assets had turned up less than $1 billion. The attorney also said the nonprofit Securities Investor Protection Corp. will reimburse investors up to $500,000 for their losses.

    Several national public figures rank among Madoff's former clients. Baseball star Sandy Koufax, actor John Malkovich and the charitable foundation of film director Steven Spielberg all invested with the financial adviser.

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

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    steph wrote on February 07, 2009 02:17 PM: The guy's name is classic. Bernie Madoff made off with all their money.

    It's sad that charities and widows were left destitute by this guy. He'll get much better treatment than a guy who stole 180 bucks from a 7-11.


    JIMBOJONES wrote on February 07, 2009 02:05 PM: i'm glad they lost thier money. they were just greedy people who got what they deserve for being so stupid.


    7th Comment wrote on February 07, 2009 09:36 AM: how about this wrote on February 07, 2009 01:41 AM:
    Ed Beaman used money from union members dues to buy land, in the promise of building a union hall on Sahara ave. but after the land was bought the union hall was never built as Ed promised ,once Ed had the land subdivided
    and shortly after this,a Farmers Insurance building on Charleston was chosen as the new location for the union hall.
    Yet the money and profits from the land deal remained with the Beaman family.
    Who's family has a direct connection to the Farmers Insurance building obtained by the Beamans.
    Union local 1908 is not operated in the best interest of the majority of dues paying members.


    6th Comment wrote on February 07, 2009 09:34 AM: Karma wrote on February 06, 2009 11:32 PM:
    Samuel, have you been honest in all your dealings?

    Can the most powerful law firm in Nevada stand up against Madoff? Notice Madoff is not in jail.

    Of course, an old man like Samuel Lionel might need a guardian. Could it be that the mighty Sam Lionel needs a chaperone in his old age? Call 1-800- Jerrod Shaffer. I bet he can take on your complaints against Madoff.

    Could history repeat itself?

    Could every attorney in town that exalts Sam Lionel find out that he is nothing more than a man like everyone else?


    5th Comment wrote on February 07, 2009 09:33 AM: Helen W. wrote on February 06, 2009 10:00 PM:
    Did you call the police to report a senior citizen scam? Did the Fraud Detective then try to steal your money too? Will the Public Guardian allege that you cannot handle your financial afairs because of this? Will they say that you were suffering from dementia because you trusted Madoff or the police, and now you need a guardian? Will they take you from your home and sell everything you own on e-bay? Will they then isolate you from your familiy, drug you, put you on a budget and starve you? How will you get an attorney when they take all your money and invest it in another scheme?
    Oh dear, Should I call Mark Solomon? I wonder if he lost money too.


    4th Comment wrote on February 07, 2009 09:29 AM: John wrote on February 06, 2009 09:59 PM:
    I guess In-vestin doesn't always pay off.

    Can Markie Mark and the funky bunch help you out?

    Such a brilliant mind to to duped.

    But at your age, I guess it doesn't matter. It will all eventually become part of your estate.

    Hey, now there is something to trump, pilfer and plunder if you are board on Friday morning.

    One has to wonder if there will be a passover? Dathen had those thought too.


    3rd Comment wrote on February 07, 2009 09:27 AM:

    From one old man to another wrote on February 06, 2009 09:29 PM:
    Samuel, Madoff made off with your sh*t.

    Maybe, you should bring a lawsuit forth.

    Maybe, you can eventually get your suit in front of Cherry or Saitta.


    2nd Comment wrote on February 07, 2009 09:26 AM: Todd wrote on February 06, 2009 09:22 PM:
    Be sure of this: The wicked will not go unpunished, but those that are righteous will go free.

    The Righteous One takes note of the house of the wicked and brings the wicked to ruin.

    Author: Credited to King Solomon


    1st Comment wrote on February 07, 2009 09:22 AM: What goes around comes around wrote on February 06, 2009 09:06 PM:
    WOW, I am surprised. By now isn't Sam Lionel in guardianship? Oh, is he off limits?

    Well Samuel, As you do so shall it be done to you.

    For it is written, Consider carefully what you do, because you are not judging for man but for the Lord, who is with you whenever you give a verdict. Noe let the fear of the Lord be upon you. Judge carefully, for with the Lord our Gos there is no injustice, or partiality or bribery.

    Author Ezra, To whom written; All Israel.