By Josh Friedlander
When former New York City Mayor Rudolph Giuliani decided to expand his security business to include hedge fund due diligence, he chose an unusual partner: a man who oversaw millions of dollars lost by a wealthy Long Island family to Bernie Madoff.
Giuiliani's partner, Stuart Rabin, doesn't use the Madoff connection to promote his new venture, but maybe he should. In a press release announcing the deal, Rabin said the new venture is a way to "offer our clients the highest level of investor protection available."
That's protection Rabin could have used as manager for various trusts and foundations related to the Jacobson family, which made its fortune in the industrial distribution business. Entities related to Rabin and the Jacobson family appear several times in the massive list of Madoff victims.
Rabin won't discuss the specifics of the Jacobson family's losses. But his firm, Nine Thirty Capital,...