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Note: but doesn't play the victim card.
By Josh Friedlander
When former New York City Mayor Rudolph Giuliani decided to expand his security business to include hedge fund due diligence, he chose an unusual partner: a man who oversaw millions of dollars lost by a wealthy Long Island family to Bernie Madoff.
Giuiliani's partner, Stuart Rabin, doesn't use the Madoff connection to promote his new venture, but maybe he should. In a press release announcing the deal, Rabin said the new venture is a way to "offer our clients the highest level of investor protection available."
That's protection Rabin could have used as manager for various trusts and foundations related to the Jacobson family, which made its fortune in the industrial distribution business. Entities related to Rabin and the Jacobson family appear several times in the massive list of Madoff victims.
Rabin won't discuss the specifics of the Jacobson family's losses. But his firm, Nine Thirty Capital, a registered investment adviser, managed $207 million in nine accounts as of December 31, 2008, according to a March Securities and Exchange Commission filing. It's not clear what percentage of those assets belonged to the Jacobsons or how much they lost to Madoff (or if the $207 million reflects the losses).
Nor is it clear how much Rabin might have lost. "I have my money invested alongside our [Jacobson Family Investments] and Nine Thirty Capital families," Rabin was quoted as saying in the August 2008 edition of Private Wealth magazine. "I have historically invested side by side with our family clients," he now says. "I continue to...