Cityfile: New York's Most Notable and Influential

The Madoff Auctions Come to an End | Victims of Bernie Madoff have another $2 million to spread around. Three boats owned by the imprisoned fraudster were auctioned off in Florida yesterday and brought in about $1 million; a sport-fishing yacht owned by Bernie's former sidekick, Frank DiPascali, reeled in another $950,000. And Ruth Madoff's convertible found a new owner, too: The 1999 Mercedes with 12,000 miles on it sold for $30,000. [Bloomberg]

Madoff Enabler to Plead Guilty | Another figure in the Madoff affair should be headed to prison in the near future. David Friehling, Bernie's sketchy accountant and the man supposedly responsible for overseeing Madoff's financial activities out of his one-man firm in Rockland County, is expected to plead guilty to a variety of charges next week. He and faces a maximum of 108 years in prison. [NYT, WSJ]

Raj Rajaratnam Could Use a Vacation | Hedge fund mogul Raj Rajaratnam managed to post $100 million in bail, but his lawyer asked a judge today to reduce it to $25 million  as well as given Rajaratnam permission to "travel freely in the contiguous 48 states." How else is he going to enjoy his country house in Connecticut and condo in Florida while he's still a free man? [NYT, WSJ]

Bernie Madoff: Now 66% Less Evil | Bernie Madoff's Ponzi scheme ultimately defrauded investors out of $21.2 billion, according to Irving Picard, the court-appointed trustee overseeing the case. That's considerably more than the $13 billion put forward by prosecutors at Madoff's sentencing in June. But that's a lot less than the $65 billion that's been bandied about for many months now, which includes the fictitious profits Madoff had "made" for his clients. The revised figure won't diminish his status as the biggest fraudster in American history. Madoff can still hold his head high when he steps into the prison yard and rest assured no one's taking that trophy away from him anytime soon. [NYT]

Bernie Madoff Makes Friends, Munches on Pizza | Bernie Madoff's life behind bars sure sounds, uh, colorful. A new lawsuit against the fraudster, which includes details from a recent visit to Madoff at a federal prison in North Carolina, says that he "shares a cell with a 21-year-old inmate convicted of drug crimes" (Madoff has the lower bunk); "eats pizza cooked by an inmate convicted of child molestation"; goes "walking around the prison track at night" for exercise; and spends his free time hanging out with "former Colombo crime family boss Carmine Persico and Jonathan Pollard, who was convicted of spying for Israel." [NYP]

Rajaratnam: 'I'm Innocent' | Billionaire hedge funder Raj Rajaratnam was arrested on Friday morning on charges he participated in one of the biggest insider trading schemes in recent memory, one that netted him at least $25 million (but possibly millions more since the investigation continues.) Fortunately for Rajaratnam, the high-profile bust didn't end up depriving him of a weekend of freedom. By the end of the day, he'd been released on $100 million bail—the highest in history—and had to give up his passport and agree not to travel more than 110 miles from New York City. And today? He was back in the office for what must have been the awkwardest Monday morning meeting ever, telling employees that he's innocent and plans to fight the charges against him.

Marc Dreier's Last Days of Semi-Freedom | If you haven't had time to read the lengthy story about disgraced lawyer Marc Dreier in the new issue of Vanity Fair, you can check out the Dreier interview that aired on 60 Minutes last night. The segment doesn't reveal much new info on Dreier, who is now behind bars for defrauding investors out of $400 million. But you will get to see the lonely lawyer pad around the apartment where he was under house arrest this spring and where he didn't have much to do all day but munch on cereal, read the newspaper, and watch TV. "Do you have any friends?" asks Steve Kroft. "It doesn't seem so." [CBS]

Madoff Trustee Closes Out the Week with a Bang | When Irv Picard makes a promise, he keeps it. A few days ago, the trustee overseeing the Madoff mess said he planned to file a lawsuit against several other members of the Madoff clan—including Bernie's brother, two sons, and niece—for treating the family firm like a "piggy bank." And today he delivered, filing an action in federal bankruptcy court seeking the return of $199 million.More

Allen Stanford's Rough Weekend | When Allen Stanford said that he found prison life "oppressive," he wasn't kidding. The financier accused of operating a $7 billion Ponzi scheme has returned to his cell after a prison brawl last week left him with mild concussion, broken nose and two black eyes. [Reuters]

More Madoff Suits on the Way | The Madoff show goes on. In an interview that aired on last night's 60 Minutes, court-appointed trustee Irving Picard said he plans to file a civil suit against Bernie sons, Mark and Andy, this week which will seek the return of $198 million. And just so no one in the immediate family feels left out, he'll be suing Bernie's brother Peter and niece Shana, too. [Dealbook]

For Sale: Sir Allen's Yacht | It seems like every day brings with it another apartment, boat, or car that the government is now auctioning off because its owner is either behind bars or about to head to prison any minute now. Today is no exception! The 112-foot yacht that belongs to accused fraudster "Sir" Allen Stanford is now up for sale. It's supposedly in excellent condition and features a new interior made of mahogany. Although if you do buy the yacht, keep in mind that you probably won't be able to use it to cruise to Antigua. That could get dangerous! [Luxist]

Bernie Madoff Portrait Needs New Home | We really can't imagine why, but Bernie Madoff's old assistant, Eleanor Squillari, has decided to auction off a portrait of Madoff that the fraudster gave her as a gift back in the late '80s. (Squillari mentioned the photo in the June issue of Vanity Fair: "Once, he gave me a picture of him taken by Karsh, the famous Canadian photographer, saying, 'Here, hang this over your bed.'") It's estimated to sell for between $3,000-$5,000. But hurry up! Bidding ends tomorrow. [Artnet via Dealbreaker]

Nemazee: 'Not Guilty' | Hassan Nemazee, the financier and Democratic party mega-fundraiser accused of swindling banks out of $292 million, pleaded not guilty to the charges against him this morning. [Reuters]

Madoff Victim List Cut in Half | You probably assumed that anyone who had the misfortune to entrust their money to Bernie Madoff lost their shirts, right? Not quite. Only about half of his clients lost money when you account for how much cash they withdrew from their accounts during the same time period, say prosecutors. Does this mean prosecutors might now consider cutting Madoff's jail sentence in half? We're guessing the answer is "no," but we thought we'd throw it out there. [NYDN]

Nemazee's Scheme Now in the Nine Figures | Hassan Nemazee, the banker and Democratic mega-fundraiser who was indicted last month for allegedly using forged documents to obtain a $74 million loan from Citibank—and who is currently under house arrest at his Park Avenue apartment—is facing new charges. He's been indicted for bank fraud and "aggravated identity theft" as part of what prosecutors describe as a $292 million Ponzi scheme that involves Bank of America and HSBC, too. Also, in case you've been mispronouncing his name all this time, the AP points out it's hah-SAHN' nah-MAH'-zee. Please make a note of it. [AP, Reuters]