(
)
To many who know him, Saul Katz, co-founder of Sterling Equities and co-owner of the New York Mets, comes off as an arrogant, self-important man who will repeatedly tell you he is a certified public accountant.
To Irving Picard, who represents the Madoff victims, Katz is the brains behind Sterling’s investment portfolio and business operations, it was alleged in an amended complaint filing on Friday.
And yet despite his insistence that he was an investment pro, Katz claims to sources he had no knowledge that Bernie Madoff was running a Ponzi scheme.
In the filing, Picard also alleges that Ivy Asset Management told Katz within the last six years it had redeemed all its Madoff investments over concerns about the funds.
Picard goes on to charge that Katz, who lives in a posh enclave overlooking Long Island Sound, took disbursements from Madoff funds of over $120 million in just the last six years.
Katz’s three sons, who work for Sterling Equities, snared even greater returns by withdrawing more than $237 million over the same period.
Since 2002, Sterling has co-owned the now cash-strapped New York Mets.
Although Sterling co-owners Fred and Jeff Wilpon get all the headlines, it is 72-year-old Katz who was in charge of all the finances and invested much of them with Madoff.
Picard, in his filing, asserts that in total Sterling executives received $300 million in net gains, and that the firm is not entitled to the $700 million it withdrew from the Madoff funds from December 2002 until December 2008, because, after receiving several warnings, it should have known Madoff ran a Ponzi scheme.
The suit is looking to claw back $1 billion from the Sterling management team.
Several sources who know the Brooklyn College grad seem to be rooting for his fall, in contrast to his partner, Fred Wilpon, who has generated more sympathy.
Katz married Wilpon’s sister, Iris, more than 50 years ago and in 1972 went into business with Fred.
Neighbors describe the 5-foot-10-inch, slightly overweight Katz as “nasty” and very self-assured. He lives in an English Tudor mansion on 12 acres in the very exclu sive North Colony en clave in Glen Cove, LI.
“He tried to block off the road with a gate [that is on his prop erty],” leading to the beach, a fellow resident in the development said, “and give resi dents keys to the gate.”
“It’s a communal road,” the resident complained.
Relenting to com munity pressure, Katz now leaves the gate open.
“It’s uncomfort able,” the resident said. “You have the impression you are trespassing.”
His son and daughter live in separate nearby homes in the tony suburb.
Glen Cove Mayor Ralph Suozzi countered that he sees a different side to Katz, whose wife runs the homeowners association. “He gives scholarships to first responders’ children,” he said.
Club car
Saul Katz — with brother-in-law Fred Wilpon — is the investment chief for Sterling Equities, which owns the Mets.
Madoff trustee Irving Picard charges:
* Katz was responsible for all Sterling Equities investments, including those with Madoff funds.
* Katz was responsible for all Sterling Equities finances.