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Politics | 01/07/2009 11:50 am

'Austria's Woman on Wall Street' on the Run?

By The Staff at wowOwow.com

Sonja Kohn may be literally running for her life.

The woman once known here as "Austria’s woman on Wall Street" has disappeared. Kohn collected more than $2 billion from rich investors in Russia and across Europe for Bernard Madoff through her firm, Bank Medici. Touting her connections, she promised investors entrée to bigger fish in the finance world, including Madoff. Some say it’s not out of the question that she’s hiding from Russian clients (do we dare say, perhaps, the Russian mob?) who trusted her with their cash and have had their wallets hit even harder by the Russian stock market and plummeting commodity prices.

"With Russian oligarchs as clients, she might have reason to be afraid," a Viennese banker who knew Kohn and her husband told The New York Times.

Click here to read the entire New York Times article.

This has left Bank Medici – which funneled money to the alleged ponzi schemer Madoff — in the hands of Austrian regulators. People who know her are even afraid to talk on the record, since being linked to Madoff these days isn’t, exactly, the best idea. A Bank Medici spokeswoman characterized Kohn, who has also served as an adviser to Austria’s economic affairs minister, foreign affairs minister and the Vienna Stock Exchange, as a "victim," but wouldn’t say where Kohn was.

Bank Medici had $2.1 billion in exposure to Madoff’s investment securities through hedge funds run by the bank, but it says it had no liquidity problems.

Kohn is just the latest casualty (metaphorically speaking, we hope) of Madoff’s scheming. Many charities suffered. Rene-Thierry Magon de la Villehuchet, the French aristocrat whose firm, Access International, lost $1.4 billion from Madoff’s dealings, committed suicide in New York last month.

Others are having hard times handling their huge financial losses, as well.

Adolf Merckle, the German billionaire (worth $9.2 billion) whose speculation in volatile Volkswagen stock nearly ruined his company, committed suicide this week by throwing himself onto railroad tracks. 

"The distress to his firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to handle the situation, broke the passionate family businessman, and he ended his life," his family said in a statement.

8 Reader Comments (so far…) Sign In or Register to comment

fp1
With the Russian mafia and oligarchs after her butt—you bet she’s on the run.
By fp1 on 01/07/2009 2:36 pm
CatherineKaiman
She can run but she won’t be able to hide forever. I certainly would not want to be in this woman’s shoes!
By CatherineKaiman on 01/07/2009 6:00 pm
AnnCoulterCrazySoulessEvilBtch
With the Russian mafia after her…her family and friends aren’t safe either. To survive she needs to have facial surgery, rewatch the Bourne films for clues, can’t even keep a regular cell-phone…she’ll need the disposal kind you pay for with cash in the drug store and get rid of often….they can do a triangulation search and find you. After she has the surgery, she needs to take marshall arts…interview Salman Rushdie for pointers, and hurry quick marry someone from Mossad, the Israeli Secret Service—the craftiest in the world. Sheesh this is awful…..but it’s also a great story plot that has my motor racing just thinking of it. Hmmm….where should she move…..
By AnnCoulterCrazySoulessEvilBtch on 01/07/2009 9:31 pm
fp1
Suzanne: Tierra del Fuego isn’t far enough. lol
By fp1 on 01/08/2009 7:03 am
CatherineKaiman
Where should she move? The Arctic maybe?
By CatherineKaiman on 01/07/2009 10:57 pm
torayangel
Hope they kill her. Seems like the US is going to let Madoff flee. He has already been sending $$ and jewelry to relatives and friends out of the country. Now why do you suppose that is ? I believe there is a lot more to this story. Why did the SEC not investigate him ? Madoff must have something on the big boys. Bet he flees the US soon, the writings on the wall.
By torayangel on 01/08/2009 1:16 pm
CatherineKaiman
I can’t disagree with your thought that Madoff is going to run, I think he will attempt to flee as well. That is if someone (meaning one of his victims) doesn’t get to him and murder him first, another senerio I can see as being possible. The Russian Mafia, will hunt down this woman, no matter how long it takes.
By CatherineKaiman on 01/08/2009 4:34 pm
JockCrack
Do not disrespect the Russians. It’s likely they grew up playing chess rather than playstation. You may sneak a piece off the table, but they will find out and act decisively according to the rules of the game. Every merchant banker is tempted by corrupt dealings at some stage of their career. If you play the game…. you know the rules. I would not be surprised if rather than gone into hiding, Ms Kohn is at the start of a very long process of paying off her cheating debt. Pyramid schemes cannot work without a cadre of involved people. Whilst many of the investors would have been absolutely innocent, It is impossible to have achieved this scam without the “feeder” clients who give respectability. If the Russian Mafia were involved with Kohn, it is likely she didn’t know about Madoff, but then it’s the Mafia!
By JockCrack on 01/16/2009 2:48 am