The name on the door hid a payroll that paid Madoff's recruits

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The name on the door hid a payroll that paid Madoff's recruits

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A small brokerage firm, Cohmad Securities, shared an office floor with Bernard Madoff's investment firm. Its name hid a secret about who fed the fraud.

The name on the door hid a payroll that paid Madoff's recruits

This episode explores Cohmad Securities, a firm with a name that revealed its hidden connection to Bernard Madoff. It delves into the company's structure, its key players, and how it operated as a recruitment engine for the Madoff investment fraud.

Person: Robert Jaffe
Date: December 2008
Location: Midtown Manhattan
Revenue Source: Bernard Madoff's firm
Percentage: 99.7%

- Cohmad Securities was co-founded by Maurice "Sonny" Cohn and Bernard Madoff in 1985, operating from the same building as Madoff's investment firm.
- Marcia Cohn, Maurice's daughter, served as both president and compliance officer for Cohmad, holding a 25% stake in the company.
- Robert Jaffe, Cohmad's vice president, recruited over 150 accounts and channeled more than one billion dollars into Madoff's fund through social networking.
- Cohmad representatives' compensation structure penalized them for client withdrawals, an unusual arrangement in the securities business.
- By 2002, Maurice Cohn began receiving a flat annual payment of two million dollars directly from Madoff Securities, rather than commissions tied to new accounts.

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