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Several local investors hit in Madoff scheme

Several local investors hit in Madoff scheme

The Capital Region’s medical and financial consulting industries appear to be among the local sector

The Capital Region’s medical and financial consulting industries appear to be among the local sectors most entwined in financier Bernard Madoff’s Ponzi scheme, according to a recently released list of investors who poured money into the alleged $50 billion scam.

The names of several area doctors and financial consultants appear on the client list for Madoff’s advisory firm, which filed the list Wednesday with a Manhattan bankruptcy court. The 162-page filing by Bernard L. Madoff Investment Securities details the reach of the scam, which Madoff allegedly sustained for decades by using funds from new investors to pay quarterly dividends to older investors.

A link to the complete list of Madoff customers is available by clicking here.

Big names on the list include movie director Steven Spielberg, former pitcher Sandy Koufax and JP Morgan Chase Bank. Schenectady County contains a cluster of medical professionals who appear on Madoff’s list. It names cosmetic surgeon Dr. Carl Englebardt in Schenectady, orthodontist Stuart Kraut in Scotia and Dr. Demostene Romanucci in Niskayuna.

Through a secretary, Englebardt declined to comment. Calls to Kraut were not immediately returned. A woman who answered the phone at a Latham address listed for Romanucci said he no longer lived there.

Two executives at the Goldman Sachs’ financial consulting firm The Ayco Co. in Saratoga Springs also appear on the list. They include Eric Chew and Timothy O’Hara. In a 2002 U.S. Securities and Exchange Commission filing, Chew was listed as Ayco’s senior account manager. A 2008 Ayco investment advisor registration form lists O’Hara as the senior vice prisident of the firm’s Encompasse multifamily office practice.

"Ayco has never invested in Madoff, and at no time did Ayco recommend Madoff to clients. Tim O'Hara and Eric Chow were not personal investors in Madoff," Ayco spokeswoman Jacqueline Grande said.

Daniel Rutnik, the president of Bender Lane Advisory in Albany, is also on MadoffÕs list. Rutnik did not immediately return calls seeking comment.

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