August 6, 1963

 

SEC ACTS ON DELINQUENT BROKER-DEALERS. The SEC today announced the issuance of orders instituting proceedings under the Securities Exchange Act of 1934 to determine whether 48 named broker-dealer firms failed to file reports of their financial condition in accordance with the requirements of Rule l7a-5 under that Act as alleged by its Staff, and, if so, whether their registrations should be revoked.

 

The Commission in numerous instances in the past has emphasized the importance of broker-dealer compliance...

 

Gibraltar Securities (Sylvia R. Madoff, dba)₎Laurelton, Queens, N.Y.

Second Gibraltar Corp.₎Laurelton, Queens, N.Y.

 

Bernie's father-in-law, Saul Alpern, and Sherman Heller were partners in an  accounting firm, Alpern & Heller. The New York State corporate database, however, does not have a record of the firm's registration, if there was one. 

12/9/1967 New York Times-Death Notices

 

Heller-Sherman on Dec. 8, 1967, beloved husband of Marjorie, devoted father of Frederick, Andrew, and Nancy. Loving son of Abraham, dear brother of Lillian and Sally. Services, Sunday, 12 Noon, "The Riverside" Westchester, 21 W. Broad St., Fleetwood, Mount Vernon. Please omit flowers.

 

Heller-Sherman, Edward and Thelma Glantz and Aaron and Barbara Levey and Members of the firm of Glantz and Levey record with sorrow the passing of an associate and dear friend and extend their sympathies to the family.

 

Heller-Sherman, Saul Alpern, Partner, and Members of the firm of Alpern and Heller record with sorrow the passing of an esteemed colleague and friend and extend heartfelt sympathy to the bereaved family.

 

New York State Division of Tax Appeals circa 1971. Note the name of the accounting firm and who represented Mr. Mirsky.:

In the Matter of the Petition
Of Joseph Mirsky

 

For a Redetermination of a Deficiency or Refund of Personal & Unincorporated Taxes under Article(s) 16 & 16A of the Tax Law for the Year(s) July 31, 1959

 

...by enclosing a true copy thereof in a securely sealed postpaid wrapper addressed as follows:

 

Sherman Heller

10 East 40th Street

New York, New York

 

...Joseph Mirsky petitioned for redetermination of a deficiency of personal income tax and unincorporated business tax for the fiscal year ended July 31, 1958.  A formal hearing was held in the offices of the State Tax Commission in the City of New York on May 16, 1969

 

The petitioner appeared through and was represented by Michael Bienes, CPA. The respondent was represented by Edward II. Best, Esq., (Alexander Weiss, Esq., of counsel).

This appeal brought by Avellino & Bienes is often cited in other cases. Note the basis for the original charge against A&B.:

   744 F.2d 332

11 Collier Bankr.Cas.2d 491, 12 Bankr.Ct.Dec. 396,
Bankr. L. Rep. P 70,024

In the Matter of M. FRENVILLE CO., INC., Rudolph F.
Frenville, Jr. and Rudolph F. Frenville, Sr.
AVELLINO & BIENES, A Partnership, Appellant,
v.
M. FRENVILLE CO., INC. and Rudolph F. Frenville, Sr., and
Charles Stanziale, Esq., Interim Trustee.

No. 83-5789.

United States Court of Appeals,
Third Circuit. 

I.

The facts of this case are undisputed. A & B is a certified public accounting firm located in New York City. From 1977 to 1979 A & B was engaged by M. Frenville Co., Inc. as an independent auditor and accountant. As part of its duties, A & B prepared certified financial statements of the company for fiscal years 1978 and 1979.

 

In July 1980, creditors of Frenville filed an involuntary petition for bankruptcy against the company under chapter 7 of the Bankruptcy Reform Act of 1978, 11 U.S.C. Secs. 701 et seq. (1982). In January 1981, creditors also filed involuntary petitions under chapter 7 of the Code against two principals of the company: Rudolph Frenville, Sr. and Rudolph Frenville, Jr.1

 

The Chase Manhattan Bank, N.A., the Fidelity Bank, Fidelity International Bank and Girard International Bank (the banks) filed suit in the Supreme Court of New York on November 16, 1981, against A & B. The complaint alleged that A & B negligently and recklessly prepared the Frenville financial statements, that the statements were false, and that because of their reliance on the statements, the banks had collectively suffered losses in excess of five million dollars.

 

As a result of the suit by the banks, A & B filed a complaint on January 10, 1983, in the Bankruptcy Court for the District of New Jersey, which was administering the Frenvilles' chapter 7 proceedings. In the bankruptcy court, A & B sought relief from the automatic stay provision of Sec. 362(a) in order to include the Frenvilles as third-party defendants in the New York state proceeding. The purpose of the third-party complaint was to obtain indemnification or contribution from the Frenvilles for any loss suffered by A & B as a result of the suit by the banks.

 

Did Bernie's father-in-law register this company? And was he selling investments in Madoff Securities?