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Madoff victims all over Colorado
Investors large, small, famous and not hit with losses
Published February 5, 2009 at 11:01 a.m.
Photo by Nati Harnik / Associated Press
Hall of Fame pitcher Sandy Koufax, right, visits with Los Angeles Dodgers manager Joe Torre during spring training in Vero Beach, Fla., in March 2008. Koufax's name appears on a list of several thousand clients who lost money investing with Bernard Madoff.
Bernard Madoff attracted investors all over Colorado, from tony Aspen to the town of Timnath.
Bart Pepitone, the director of development at the Aspen Country Day School, said he is one of maybe 100 Madoff clients in Aspen. Pepitone said he lost more than half of his money, a sum of "less than $1 million."
"It's obviously very upsetting," he said in a phone interview on Thursday. "No one in Aspen had any idea anything was amiss. Now many have lost substantial amounts of money. Some lost all of their money. All that's left is a house they cannot sell."
Pepitone, facing significant expenses, including the cost of his mother's nursing home, said the losses hurt. But he added that his "life will go on."
Denver accountant Larry Neu said he is helping a couple of wealthy clients in Aspen whose combined losses are in the eight figures. Some investors met recently at the Hotel Jerome to discuss their shared dilemma.
"It's tragic," said Neu, who is not a client himself.
Hall of Fame pitcher Sandy Koufax, World Trade Center developer Larry Silverstein, actor John Malkovich and CNN host Larry King all appear on a list of Madoff's once-trusting customers. The 162-page document, made public in a filing with the U.S. Bankruptcy Court in Manhattan, serves as testament to the sweeping nature of the money manager's alleged $50 billion fraud.
Organizations linked to the estate of singer-songwriter John Denver have surfaced. Ann Denver, at the same address, is on the list, too.
An analysis of the list shows that the people come from 44 states and at least 40 countries, from the Cayman Islands to Kenya to Switzerland. Florida has nearly 2,200 entries. Colorado has scores of customers.
Not everyone on the list was a Madoff victim. Some ended up in the document simply because they are lawyers or accountants whose clients are connected to Madoff, for example. Some had no dealings with Madoff whatsoever. But the sheer volume of the list demonstrates the reach of Madoff's world.
Daryl Bonyor said her family "scraped together enough money" to invest with Madoff about 20 years ago. For a long time, the consistent returns kept them content and feeling grateful.
"Then we woke up one morning and found out we had a big problem," she said.
Bonyor, who lives near Fort Collins in Timnath, said "this hasn't wiped us out, but it has damaged our income. We're watching how we spend our money."
Another Colorado investor, Robert Chew, previously said that he lost $1.2 million and that his wife's family's combined losses are close to $30 million. His name did not appear in the new document.
Some investors said having their names bared in the court documents was one more blow in what has been an emotionally devastating experience.
A 63-year-old Denver woman who wished to remain anonymous said she entrusted about $500,000 to Madoff, or 80 percent of her nest egg. Now it's gone.
The former Denver city employee said she was thinking of retirement but is searching for work.
"People should know there are normal people who lost money, too," she said.
Madoff hasn't been indicted. He's being held under house arrest at his multimillion-dollar penthouse in Manhattan.
The Associated Press contributed to this report.
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