Broker with ties to Madoff will miss 2d state hearing
Boston broker Robert Jaffe is not expected to appear at his rescheduled hearing Wednesday in the state’s investigation of the Bernard L. Madoff case, Massachusetts Secretary of State William F. Galvin’s office said today.
Jaffe, who helped raise money for Madoff, did not appear at a hearing last week, despite being subpoenaed.
Galvin won a court order to compel Jaffe to appear in court Wednesday afternoon if he does not show up for his meeting with the Securities Division.
Stanley S. Arkin, Jaffe’s lawyer, said in a statement that ‘‘Bob Jaffe and his family are victims of one of the most willful and despicable frauds ever seen. The depth of betrayal of Bob Jaffe and his Jaffe family by Bernard Madoff is stunning.’’
He said that on Monday, he sent a letter to Galvin, asking for an adjournment of Jaffe’s deposition to give Jaffe more time to prepare. Arkin said he also plans to challenge the validity of Galvin’s subpoena and wants to coordinate the efforts of numerous regulators all seeking the same testimony.
Arkin also took personal aim at Galvin today, saying Galvin has made negative comments about Jaffe in the news media that he alleges have hurt Jaffe’s reputation and violated ethics rules. ‘‘These are serious concerns that we will take to court,’’ he said.
Galvin refuted Arkin’s charges, saying: ‘‘The reality here is many Massachusetts investors have lost millions and millions of dollars, and their broker in this matter was Mr. Jaffe. I clearly have a statutory responsibility as well as the authority to investigate Mr. Jaffe’s involvement in this.’’
He said the state has given Jaffe several extensions, but he has refused to leave his winter home in Palm Beach, Fla., to appear. ‘‘We’ve asked for his cooperation,’’ Galvin said. ‘‘His reluctance to cooperate is clearly a concern.’’
(By Beth Healy, Globe staff)