Marlene Krauss, Harvard MBA, Falls for Ponzi Scheme

Last week the complete list of Bernie Madoff’s “victims” was released by the courts.  And low and behold, the Chelsea Hotel’s own Marlene Krauss, Chair of our board of directors, was featured in its pages, with not one, but two listings.  Unfortunately, the document doesn’t reveal the amount of money she “invested,” though maybe that will come to light at a future time.We’re sure that the money is from her own personal fund rather than that of the investors in her heath care venture capitalist firms (KBL Healthcare Corp III and KBL IV), as such would, we understand, not be quite kosher.  Though the temptation might have existed to put the KBL money in what appeared to be a higher-yield fund such as Madoff’s, we’re sure Marlene would want to do the right thing and put the approximately $350 million into a more secure fund such as treasury bonds. But what she worry?  With room rates at the Chelsea Hotel slashed to $89/night for even the most expensive suites, she’s sure to make her money back in no time.  Expressions of sympathy should take the form of personal checks, money orders, loose change, S&H Green Stamps or gently used coats, and can be sent to Mistress Marlene at her POB Box or dropped in the convenient repository at the Chelsea’s front desk.  -- Ed Hamilton