Billionaire brothers Charles and David Koch have made plenty of good business decisions over the years. Placing millions of dollars with Ponzi-scheme mastermind Bernard Madoff may have been one of them.
Koch Industries Inc. invested an unknown sum with the con man’s now-defunct securities firm years ago, and walked away with $21.5 million in profits before Madoff’s arrest in 2008. But since 2012 the company run by the conservative-activist brothers, worth today a combined $109 billion, has refused legal demands to return the money.
Irving Picard, the trustee liquidating Madoff’s firm, contends in a suit that the cash is fraudulent proceeds of the scam and should be shared among the thousands of victims. Koch Industries, and dozens of other early investors named in 87 other lawsuits, argue the company can keep the profits because the money was sent overseas and is beyond U.S. jurisdiction. At stake: a total of $2 billion.
With especial attention to this quote, "The
guy inside Koch who orchestrates their PR and political strategy is
named.....you will not believe this but I could not make it up......Rich
Fink. Their money, how they get in and what they will do to lower
their costs and hang onto that money are some of the things they want to
Industries was hit by the largest judgment for personal liability in
history over the incineration of Danielle Smalley and a friend on Aug.
24, 1996. The cause was a defective high-pressure gas pipeline that
exploded, taking the lives of the two teenagers. Both were 17. The
amount named by the jury was 296 million dollars.
Punitive damage awards exist to make it possible to hit those with
money and power who act with blatant disregard of others. This,
although Koch Industries admitted in court it had not properly
maintained the lines and had failed to tell the public, according to the
site of the attorney representing the Smalleys, Jim Arnold and Associates.
Conveniently enough for Koch Industries, the Texas court forced a
reduction in the award that meant that Danielle's father had to sign a
nondisclosure agreement on the amount awarded.
The Smalley case was only one of three hundred spills caused over six states in the 90s for which Koch Industries was finedaccording to Planet Ark.
Guess who was governor in Texas at the time? George W. Bush. MORE