Swampscott man taken in by Madoff scam

Swampscott resident and longtime businessman Arthur R. Schwartz agreed to invest with Bernard Madoff in 1993 after a good friend told him it would be a “very good investment.””A very dear friend of mine who was also an investor recommended it,” Schwartz, 83, said from his Puritan Lane home Thursday. “I was advised it was a very good investment, with a steady income and minimal risk, with a history of bringing nice conservative returns annually.”Schwartz and his son own the Schwartz and Benjamin shoe importing company, which was based out of Lynn from 1947 until 2005 and is now located in Peabody.Semi-retired, Schwartz says he followed his friend’s advice and was “very happy” after initially investing with Madoff, despite hearing that the man who is now eyed as conducting the biggest financial fraud in United States history was being investigated a few years ago.”We had heard some years back that there was an investigation,” Schwartz said. “But he came back with a clean bill of health.”Schwartz’ trust, titled The ARS Partnership, is one of six Greater Lynn organizations or people announced Thursday as a victim of Madoff’s Ponzi scheme. The list was made public in U.S. Bankruptcy Court in New York City.Other North Shore victims include Ted Poland, who lives around the corner from Schwartz on Puritan Road in Swampscott, Irene Whitman and James New of Clothmasters Inc. of Swampscott, S. James Coppersmith of Marblehead, Kenneth D. Bane of Marblehead and Debra Brown of West Peabody.The list of client names, including those of Madoff’s relatives, numerous celebrities, dead people and charitable institutions, are listed on a 162-page document. Some customers are listed multiple times, presumably because they had multiple accounts. The amount each person or institution invested with Madoff isn’t listed.Schwartz would not say exactly how much money he lost in the scam but said it was “too much.”He said federal investigators have not contacted him about the case, but that he’s filled out a form in hopes to be compensated in the future.”If I’m healthy and live long enough we’ll see if anything happens,” Schwartz said.Several celebrities were duped by Madoff as well, including actor Kevin Bacon, baseball player Sandy Koufax and World Trade Center developer Larry Silverstein.The Associated Press reported that a whistleblower in the case, Harry Markopolos of Whitman, Mass., told House lawmakers at a Wednesday hearing that additional funds show European financial managers ignored obvious signs of the massive fraud scheme, which, if proven, would substantiate claims that the scam was too large for Madoff to have conducted alone.House lawmakers on Wednesday sparred with Securities and Exchange Commission officials, accusing them of impeding their probe into how the agency failed to uncover the alleged fraud.Prosecutors say Madoff admits he lost more than $50 billion belonging to investors. Defense lawyers say he has cooperated with authorities to help identify assets.The list released Thursday was compiled by AlixPartners LLP, a Dallas company hired as claims agent by the trustee overseeing the liquidation of Bernard L. Madoff Investment Securities LLC.One of Madoff’s clients is Ira Sorkin, the attorney who is defending Madoff against charges he perpetrated the biggest financial fraud in history. Others include Madoff’s wife, sons, brother and other relatives.Madoff hasn’t been indicted. He is being held under house arrest at his multi million-dollar penthouse in Manhattan.Material from the Associated Press was used in this report.