Bank Medici
Encyclopedia
Bank Medici AG
was a bank
based in Vienna
, Austria
. It was founded in 1994 by banker Sonja Kohn
and incorporated as a bank in 2003.
Bank Medici's president and majority stakeholder is Sonja Kohn. Its main institutional shareholder is Bank Austria Creditanstalt, Austria's largest banking group. Sonja owned 75% of the bank, and Bank Austria owned the balance.
, the Austrian government appointed a supervisor to run the private bank. On January 7, The New York Times reported the exposure to Madoff was $2.1 billion, some of which may have come from Russian oligarchs
. After the Madoff losses were reported, Ms. Kohn, aged 60 at the time, and her husband Erwin had largely been out of public sight. The Austrian-government-appointed commissioner Gerhard Altenberger has been effectively managing the bank in that time.
On January 14, 2009, William Galvin, Secretary of the Commonwealth of Massachusetts, who is in charge of the state's securities issues, filed suit against Jaffe, who promoted Madoff's funds to wealthy investors in Massachusetts
and Florida
. On February 4, compelled to testify, Jaffe invoked his Fifth Amendment
right. Marcia Cohn, Maurice Cohn, and Alvin Delaire, Jr. failed to appear. On February 11, 2009, Galvin filed a complaint seeking to revoke the Massachusetts license of Cohmad Securities Corp., an accounting of all Massachusetts investors Cohmad referred to Madoff’s company, all the fees it earned doing so (more than $67 million), and a fine. It cited $526,000 in referral fees paid from Madoff Investments, to Cohmad, to Vienna Bank Medici majority owner, Sonja Kohn
, which she subsequently denied. On May 28, 2009, Bank Medici lost its Austrian banking license. Kohn and the Bank are under investigation.
Aktiengesellschaft
Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e. owned by shareholders, and may be traded on a stock market. The term is used in Germany, Austria and Switzerland...
was a bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
based in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
. It was founded in 1994 by banker Sonja Kohn
Sonja Kohn
Sonja Kohn is an Austrian banker.-Biography:Sonja Kohn was born to Jewish refugees from Eastern Europe. She grew up in Vienna in a small Jewish community....
and incorporated as a bank in 2003.
Bank Medici's president and majority stakeholder is Sonja Kohn. Its main institutional shareholder is Bank Austria Creditanstalt, Austria's largest banking group. Sonja owned 75% of the bank, and Bank Austria owned the balance.
Madoff investments
Following news on 2 January 2009 that the Bank may have lost $3 billion invested with funds run by Bernard MadoffBernard Madoff
Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S...
, the Austrian government appointed a supervisor to run the private bank. On January 7, The New York Times reported the exposure to Madoff was $2.1 billion, some of which may have come from Russian oligarchs
Russian oligarchs
Business oligarch is a near-synonym of the term "business magnate", borrowed by the English speaking and western media from Russian parlance to describe the huge, fast-acquired wealth of some businessmen of the former Soviet republics during privatization in Russia and other post-Soviet states in...
. After the Madoff losses were reported, Ms. Kohn, aged 60 at the time, and her husband Erwin had largely been out of public sight. The Austrian-government-appointed commissioner Gerhard Altenberger has been effectively managing the bank in that time.
On January 14, 2009, William Galvin, Secretary of the Commonwealth of Massachusetts, who is in charge of the state's securities issues, filed suit against Jaffe, who promoted Madoff's funds to wealthy investors in Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
and Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
. On February 4, compelled to testify, Jaffe invoked his Fifth Amendment
Fifth Amendment to the United States Constitution
The Fifth Amendment to the United States Constitution, which is part of the Bill of Rights, protects against abuse of government authority in a legal procedure. Its guarantees stem from English common law which traces back to the Magna Carta in 1215...
right. Marcia Cohn, Maurice Cohn, and Alvin Delaire, Jr. failed to appear. On February 11, 2009, Galvin filed a complaint seeking to revoke the Massachusetts license of Cohmad Securities Corp., an accounting of all Massachusetts investors Cohmad referred to Madoff’s company, all the fees it earned doing so (more than $67 million), and a fine. It cited $526,000 in referral fees paid from Madoff Investments, to Cohmad, to Vienna Bank Medici majority owner, Sonja Kohn
Sonja Kohn
Sonja Kohn is an Austrian banker.-Biography:Sonja Kohn was born to Jewish refugees from Eastern Europe. She grew up in Vienna in a small Jewish community....
, which she subsequently denied. On May 28, 2009, Bank Medici lost its Austrian banking license. Kohn and the Bank are under investigation.