Wow it just keeps on growing http://dealbook.blogs.nytimes.com/2008/12/14/a-list-those-exposed-to-losses-from-madoff/?hp
This is almost too stupid to be for real. All those hotshots, along with their overpaid lawyers, you mean to say not one of them did due diligence and found any reason to be suspicious? Look , he just madoff with thier money and that's all there is too it.
Actually, some did do due diligence and were defrauded. It's likely this was possible because Madoff's case was unusual in that he was a market maker and could actually forge trade records that a third party would authenticate as real. This would be similar to accusing a Treasury mint that prints US dollars, of printing counterfeit bills (i.e. bills with redundant serial numbers to avoid detection during graft). The problem is, any third party would examine these bills and proclaim them to be real simply because they're literally indistinguishable from real money (in fact, they are despite being technically counterfeit).
It's probably a safe bet that a number of these folks suspected there was hanky-panky involved, and chose to look the other way because they thought they were in on the take.
I'm not so sure they were aware. I mean, I'm sure some of the closer guys, particularly people involved like the GMAC head, Merkin, were totally aware, or aware enough but figured it was working so who cares... ... but like, http://www.politonomist.com/top-10-madoff-losers-00168/ check that out. Fairfield Greenwich Group? I doubt anyone there knew; I think poor management and lack of due diligence was involved in a lot of levels.
gives complete new meaning to "oh wat a tangled web we weave..." not to mention 6 degrees of separation. yeesh. Madoff didn't work all of this. I think he got the first few levels involved...which then had their connections, which then had THEIR connections, etc. etc...so once the top guns had enough...
There is due diligence and there is good ole common horse sense.... These guys thought that someone actually can create a 10-percent return risk free? Nowadays they give out MBA's and finance degrees just about to any asshole who pays enough (just look at Bush Jr.)