Madoff Must Have Had Help
Last week’s finding that Bernard Madoff didn’t trade any securities for more than ten years lends support to the claims that he could not have carried out the largest Ponzi scheme in history all alone, Bloomberg News reports.
Late last year, Madoff told federal investigators that he was solely responsible for the $50 billion securities fraud scam. But that seems unlikely. According to the bankruptcy trustee liquidating Madoff’s securities firm, it now appears there were no trades for at least a decade. At the same time, the firm sent client statements showing trading activity and market prices.
In an interview with Bloomberg, Columbia University Law School professor John Coffee noted:
“Someone had to creatively imagine what to tell all those clients.”
In addition to employees of the securities firm, Coffee indicated that feeder fund managers may also find them exposed to criminal charges.
“If prosecutors can show a kickback or any kind of undisclosed payments to feeder funds, then it will be much simpler for private investors to sue those feeder funds and it can support indictment under mail and wire fraud statutes.”
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.
