Spanish Prosecutor Probes Investor Fraud
Spain’s anticorruption prosecutor is investigating how that country’s largest lender, Banco Santander, lost money through Bernard Madoff’s alleged fraud.
Santander, which is also the owner of U.S.-based Sovereign Bancorp, could lose $3.1 billion as a result of the alleged Ponzi scheme.
According to the Wall Street Journal, the probe was launched last month. Investigators are examining the relationship between Santander, the investment fund Fairfield Greenwich Group, and Madoff.
As the WSJ reported last week, Fairfield Greenwich could lose $7.5 billion in Madoff fund investments. Other charities, hedge funds and banks that invested money with Madoff and now face potential losses include:
HSBC, a British bank, provided financing to a small number of institutional clients who invested with Madoff. HSBC’s potential loss exposure is $1 billion.French investment bank Natixis SA indicated that while it did not directly invest with Madoff funds, some investments made on behalf of its customers could have ultimately wound up with Madoff. Natixis could lose $554 million.
Carl Shapiro, an entrepreneur and investor, personally lost approximately $400 million in the alleged fraud. His charitable foundation, Carl and Ruth Shapiro Family Foundation, lost an estimated $100 million.
Over 100 investment companies, hedge funds, banks, charities and individuals invested their clients’ money with Madoff.
Brokers and hedge funds must conduct a due diligence investigation before turning a client’s money over to another investment firm. In the Madoff debacle, middlemen that acted as a go-between are now facing lawsuits from angry investors claiming a lack of due diligence.
Carey & Danis pursues numerous securities fraud cases on behalf of defrauded individual and institutional investors. Investors who wish to discuss their rights against Madoff Investment Securities or against companies that invested money with Madoff may contact Carey & Danis toll-free at 800-721-2519 or fill out our online contact form.
