MAJOR INVESTOR DECRIES INCENTIVE PAY

NYT - The Louisiana Municipal Police Employees' Retirement System, a major investor in Simon Property Group of Indianapolis, is very unhappy with a Simon Group Board action of 2011.  An "incentive award" was given by the Board  to Simon's CEO and Board ChaIrman, David E, Simon .   The award of one million shares of stock is valued today at $146 million and will be paid in 3 installments 6 years from the award date. Usually, a major "incentive award" is tied to share price and growth of the company. Not in this instance.   As Gretchen Morgenson wrote in the Times article, "The only requirement to receive this bounty was that Mr. Simon show up for work".  It would seem such a Board Decision  best serves Mr. David Simon as CEO but also as Chairman of the Board, a subject open for criticism.

THE PIZZAZZY LADY MAKES HEADLINES

 WSJ - Rita Crundwell is a 59-year old former Dixon, Illinois comptroller who can maybe add more figures to her resume - 20 years in prison for helping herself to $53 million of city money to fuel a fancy life style over more than 20 years.  One extravagance was buying a race horse named The Pizzazzy Lady by falsifying a sewer project invoice for $350,000 and then using the money for her horse farm and purchase of the horse.

FORMER MADOFF CONTROLLER PLEADS GUILTY

WSJ -  When Bernard Madoff was arrested on December 12, 2008, he stated nobody else was involved in or guilty of his giant Ponzie scheme of $billions. On November 8, 2012 - nearly 4 years after Madoff's arrest - the ninth employee of BLMIS,LLC, former controller Mr. Irwin Lipkin, pleaded guilty to criminal charges and will be sentenced March 22, 2013.  Mr. Lipkin started with BLMIS in 1964 when it was a 2-man outfit and was employed by BLMIS until 1998.  He has stated, "at no time prior to my departure was I aware of any Ponzie scheme" ( in spite of being controller for 44 years??). He also has stated he signed "myriad documents" he knew to be false.  His guilty plea included forfeiture of $170 billion, the same amount both Mr. Madoff and chief officer Mr. Frank DiPascali agreed to forfeit.  The Madoff Saga goes on and on!!

PETTERS CLAWBACK BY RECEIVER DENIED BY JUDGE

Strib - Tom Petters, Minnesota businessman, is in prison for 50 years for his $3.65 billion Ponzie scheme loss to investors (pages 101-105 in The Greedsters). Douglas Kelley was appointed by the court to be a receiver and clawback donations made by Petters  to various parties.  The College of St. Benedict in Avon, Minnesota received a pledge of $3 million from Petters, $2 million of which had been paid to the College who spent the money  to renovate and expand the Benedict Arts Center in St. Cloud, Minnesota and $1 million had never been  paid.  Receiver Kelley sued the College to clawback the $2 million.  U. S. District Judge Richard Kyle ruled Kelley had no authority to sue the College as the lawsuit filed under  the  Minnesota  Fraudulent Transfer Act and the Federal Debt Collection Procedures Act was governed by a new 2-year  limitations statute and therefore the Feds could not sue the College with new State limitations of 2 years (in this case) instead of the original  6 years.  Lucky St. Benedict College!!