Now this makes it interesting. We know UBS, CS, Julius Baer are specialists at this. This opens up a new can of worms. There is a rumor among Madoff investors that he has $1 billion stashed in an overseas bank account. Sorkin, Madoff's lawyer, would not comment on this. http://www.cnbc.com/id/28225044 Fairfield Greenwich Fund Plans to Sue Madoff By Charlie Gasparino, CNBC | 14 Dec 2008 | 05:26 PM ET Text Size Fairfield Greenwich, one of the big feeder funds, is planning a lawsuit against Bernard Madoff, the New York money manager accused of running what prosecutors say was a $50 billion Ponzi scheme. Bernard L. Madoff CNBC.com Bernard L. Madoff In the lawsuit, Fairfield is expected to say it was a victim of fraud and that Bernard L. Madoff Investment Securities didn't do enough due diligence when it marketed Madoff's investment business to clients. Fairfield did its own due diligence, hiring auditors and checking trade confirmations. Madoff had produced the confirmations but Fairfield claims it went to third parties to make sure trades took place and found out they did. That could mean that this scandal is much bigger than previously thought. Part of the defense of the feeder funds will be the extent of the involvement the Securities and Exchange Commission had with Madoff's investment activity that goes beyond what the SEC stated on Friday. Fairfield will claim that when the SEC recently looked into whether Madoff should be registered as an investment adviser, they made some inquiry into Madoff's investment activities and were fooled â as were the feeder funds. Madoff sold himself as a solid investor who didn't shoot for huge returns, just stable returns. He was able to capitalize on several converging forces: the tremendous amount of wealth created during the 1990s and into the current decade, how investors got burned in 1998 during the blow up of Long Term Capital Management and the implosion of dot-com stocks in 2001. RELATED LINKS His 8 percent to 12 percent returns were a stark contrast to high-flying returns, which later blew up. He used that as a marketing play, as well as the fact that his funds were technically closed â the exclusivity added to the appeal. Madoff would let people in, but only only after some consultation. The more he did that, the more people wanted to get in. Madoff complained to officials at Tremont, another feeder fund, about mass redemptions from Europe two weeks ago according to sources. It was around that time that he began contemplating hiring an attorney, the source adds. According to people close to Madoff he contacted Ike Sorkin after his arrest when he was in FBI custody. There is a rumor among Madoff investors that he has $1 billion stashed in an overseas bank account. Sorkin, Madoff's lawyer, would not comment on this. © 2008 CNBC, Inc. All Rights Reserved
The only question is , do we waterboard him or cut off his fingers and other appendages until he spills the beans. Now they're saying that investors who COLLECTED profits from Madoff in the past , may have to regurgitate them since a ponzi fraud was involved. Gets uglier by the nanosecond. Bring back public hanging. PS, where where all the other employees of this clown during this time? One old fart and a few sons, able to defraud an entire firm of so called 'street wise ' traders for so long. Bullshit.
Geez, if you're gonna post at least understand the facts before you post. I guess you've not been around too long as a trader.
Once again the auditors, "well respected" firms, have not done a proper job. They are just as miserable as the rating agencies rating the subprimes and other verhicles. Do your own investing and due dilligence or put the money in short term deposits or give it to charity. I lost a sizable amount with managed accounts and banks about ten 10 years ago while still working. Then started to spend some time doing it myself and from then on made real money with my funds. Felix
"Wealthy Italian families", probably the majority hailing from little sleepy villages in Sicily and Calabria Madoff won't be safe in jail.
Even as he confessed to his family, he plotted to hand out $200 million in remaining assets to family and employees. So yes he had every intention of turning a mass Ponzi scheme into mass embezzlement of the company and ill gotten gains. He's facing only 20 years and a $5 MILLION fine. Sure he'll have to pay back any money proven to be ill gotten, but they're not going to give back every crumb. His sons and friends are still going to wear top hats and tuxedos at the end of the day, and I'd bet 3:1 odds he has at least another $500 million stashed away abroad. Think about it, if you ran the world's biggest ponzi scheme for that long, wouldn't you stash away at least 1% somewhere knowing you can't keep this up forever? Madoff knew his sons would inherit his business after his death anyways.
he would not store money hidden away, that would be ilegal and he wouldnt jump bail, that would be dishonorable