Madoff manage any Reserve Funds for Co-ops?

That would most likely violate the terms of the underlying mortgage, if there is one. Plus I doubt many co-ops have that much cash on hand.

Boards have discretion where to invest their reserve funds (monies from assessments, flip taxes, etc...) they hold for the benefit of the Co-op. Most Co-ops will have funds set aside for future major repairs like boilers and roofs.

true, streetview, but they are limited in what they can do if they have an underlying mortgage as banks will not allow them to invest operating cash in risky assets.

Madman had "stable" returns. Appeared honest and reputable. Did he appear to be risky to those on Long Island or in Florida with their life savings?

"Madman had "stable" returns."

That's the whole problem. No one who invests in equities can have stable returns over long periods of time.

Madman had only 3 negative months out of 144 months (12 years). He was golden. How could you lose.

Where does he live? His poor neighbors!

"He lived well. He has an expansive prewar co-op on Manhattan's Upper East Side, real estate records show. An apartment similar in size to his unit sold for more than $5.7 million in 2006. "

"Madoff apparently kept the loss a secret even from his two sons and other family members who work at the firm until he and two of them retreated to his apartment occupying the entire 12th floor of an Upper East Side building on Dec. 9, according the complaint drawn up by an arresting FBI agent."

"Mr. Madoff and his wife live in an apartment building on Manhattan's Upper East Side where property records list individual apartments valued at more than $5 million. One property database estimated the 2008 market value of Mr. Madoff's two-floor unit to be roughly $9 million. For years he has served as president of the building's co-op board, according to a tenant."

OK, there are a few clues. Where is it?

Saw the awning on the news: 133 e 64th.

133 e 64th is listed as 844 lex on streeteasy:

http://www.streeteasy.com/nyc/building/844-lexington-avenue-manhattan

Some institutions were so comfortable with the investments made with Madoff, they disclosed the investments as "government securities". His game was to show year end statements with positions liquidated into treasuries. Then in the new year, he would start up the black box strategy and repeat the year end liquidation into treasuries. Auditors of investors in Madoff must have been caught off guard with the allusion into treasuries. Before you buy an apartment in his building, check out the financial disclosures.

Thanx for the info. Nothing available there at the moment; I certainly wish them all well. What a mess - & very sad on a personal level; wasn't it his sons who called the authorities?

Typically coop reserve funds are held in short-term, liquid securities such as institutional money market funds, Treasury Bills, repo's, CP, etc.

I would think that Madoff's investment time horizon would have been longer term, as is the case with most hedge funds, and that investors would have to have qualified under the criteria for 'high net worth'. I'm not sure that coop reserve funds would fit into this category.

Also, some coops also have guidelines against board members board business for their own personal gain. If Madoff were managing the building's cash with his own firm, that would certainly look fishy, and it wouldn't say much for this board.

Also, Madoff was co-president, not Treasurer; the latter's the one responsible for managing cash. And boards typically have guildeines for investing.

So unless we hear otherwise, I think OP's concern is irrelevant.

Maybe not, but I read he was on the board for yeshiva university.

I thought Madoff lived in the East 80s.

ali r.
{downtown broker}

he was arrested on east 64th street