Cityfile: New York's Most Notable and Influential

A couple of weeks ago, we pointed out that Robert Jaffe, the car-collecting clotheshorse who raised hundreds of millions for Bernie Madoff, had returned to a life of leisure and was back hitting balls at the Palm Beach Country Club. He probably isn't golfing this afternoon—and that's not because there are reports of scattered thunderstorms in Palm Beach today. The SEC just filed civil fraud charges against Jaffe and two other executives affiliated with Cohmad Securities for marketing Madoff investments while "knowingly or recklessly disregarding facts indicating that Madoff was operating a fraud." The SEC also filed charges against Stanley Chais, who helped raise as much as $1 billion for Madoff from the Hollywood crowd, but has since left LA to move to NYC. [NYT/Dealbook, WSJ]

Robert Jaffe was one of Bernie Madoff's most prominent fundraisers. Shuttling between Boston and Palm Beach, the well-coiffed, car-collecting financier with a weakness for $5,000 suits was responsible for raising countless millions over the years, funds he funneled into Madoff's $65 billion scheme. Jaffe is currently facing multiple lawsuits, and investigations by multiple state and federal agencies are still pending. He's also been almost entirely rejected by the people he once called his friends and clients: Back in December, for example, he nearly took a beating when he turned up at a party and came face to face with Nine West founder Jerome Fisher, who lost $150 million to Madoff's scheme. But while Jaffe faded from sight soon after and retreated to his $17 million mansion—and even had to sacrifice his weekly manicures because he was reportedly "too embarrassed to show his face"—he's back! More

Who Else Is Going Down with Bernie? | Is Ruth Madoff facing indictment? What about the Madoff's two sons? And what will happen to Walter Noel and Bob Jaffe? Lucinda Sparks has some juicy detail over at The Daily Beast, including the unsurprising revelation that Bernie Madoff hasn't been the easiest guy for prosecutors to deal with. Says one source: "He is not reliable. He’s jerking everyone around. Every day he changes his tune about where the money went and where it is. He's trying to protect his family." [TDB]

In news that will come as a surprise to precisely no one, it appears the Palm Beach Country Club has taken the final step and officially expelled Bernie Madoff from the club. A tipster tells us that late last week, Bernie's golf handicap at the PBCC, which had been posted to the United States Golf Association website, suddenly vanished. Unfortunately, we were unable to confirm the latest disgrace to a man who couldn't even play golf if he wanted to: A woman who answered the club's phone said no one would be prepared to comment on the matter. But all is not lost for the Madoff clan!More

Thousands of attorneys have lost their jobs as the economy has spiraled downward in recent months. One group who won't be unemployed in the near future (and probably won't be seeing their husbands and wives much either): The ones who have been retained to defend Bernie Madoff and the men who showered him with cash, people like Walter Noel, Ezra Merkin, and Bob Jaffe. This week, Noel's hedge fund, Fairfield Greenwich, was sued for a third time in as many weeks. The plaintiffs in the most recent suit include several anonymous offshore trusts and a Mexican businessman by the name of Carlos Gauch. But they've lined up a star attorney, David Boies of Boies, Schiller & Flexner, to make Noel's life miserable. Just in case you don't have anything better to do this evening, you can look over the most recent legal assault on Noel after the jump.More

Stalking Bob | Robert Jaffe helped steer millions of dollars into the hands of Bernie Madoff. Yesterday he was scheduled to meet with officials in Massachussetts as part of an investigation into Madoff's massive Ponzi scheme. Jaffe didn't show up, though: His lawyer claimed he was under the weather. So we'll go ahead and assume that the man seen leaving his Palm Beach house yesterday in a black Navigator was just his doctor making a house call. [NYSD, last item]

• Citigroup announced yesterday that it would sell a majority stake in Smith Barney to Morgan Stanley, but more change is on the way: The bank is expected to dump two consumer finance units as well as its "private-label" credit card business, which means now your Save the Whales Mastercard is in jeopardy, too. [WSJ, NYT]
• Deutsche Bank reported a loss of $6.3 billion in the fourth quarter. [BN]
• HSBC may need $30 billion to stay afloat. [DB]
• Nortel Networks has filed for bankruptcy protection. [BN]
• Just in case it wasn't eminently clear by all the bad news above, today is expected to be a pretty bad day in the markets. [WSJ] 
• Marcus Schrenker was caught last night, but there's a new financial exec to add to the fugitive list: Ex-UBS exec Raoul Weil is now a wanted man. [NYT]
• Bernie Madoff will be in court in person later today when a judge considers an appear from prosecutors who want to imprison Madoff pending trial. [BN]
• Robert Jaffe, the Madoff middleman who failed to show up to meet with regulators yesterday, says he missed the meeting because he's sick. [WSJ]
• More on Tim Geithner's little tax problem. [NYT]

How many financial fraudsters are on the run, or at least appear to be? At least two as of this afternoon! There's Marcus Schrenker, the financial adviser accused of defrauding investors through three of his companies, who tried to fake his death over the weekend by bailing out of his plane (which crashed in a Florida swamp) before taking off on a red motorcycle. Schrenker remains missing—some suspect he may have fled the country—but if he gets caught, he'll have quite a movie to sell to Hollywood, won't he? Schrenker isn't the only crook to have mysteriously disappeared. Robert Jaffe, the Bernie Madoff middleman from Palm Beach, who, last we heard, was selling off his wardrobe to a consignment store, failed to show up at a meeting with Massachusetts regulators today. There isn't an arrest warrant for Jaffe yet. ("What happens now is yet to be determined," says an official.) Let's hope that changes. It isn't every day that you get to see a police car chase a vintage green MG through the streets of Palm Beach.

It looks like Robert "Bob" Jaffe, the Palm Beach social fixture and Bernard Madoff middleman now under investigation by the FBI, could use a couple of bucks. Palm Beach Post gossip columnist Jose Lambiet reports that Jaffe recently turned up at a consignment shop in town with some of his jackets. "We're selling Mr. Jaffe's things right now," says the store manager. "We've got some nice Kiton jackets and sportcoats that belong to him. New, they're about $5,000. I've got one on sale for $895." From Jaffe's skeleton-filled closet straight to you!