Madoff Feeder Funds Knew about his Scam

Endless greed.

Money raisers, the feeder funds, knew Bernard Madoff was running a scam but invested with him anyway. Why? They knew they could make money.

Edward H. Seidle testified on Tuesday that in his opinion,

"... that [the funds and their principals] were all aware that Bernard L. Madoff was engaging in illegal conduct in connection with his purported money management operations and intentionally chose to participate and support Madoff's illegal conduct in order to reap enormous illicit financial benefits..."

Affidavit: Madoff associates knew of scheme, joined anyway

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Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism

Bernard Madoff Client List

You can find the link to Bernie Madoff's client list below. I was tempted to put the word "victim" in the headline.

Famous names you would recognize include Sandy Koufax, John Denver, Frank Lautenberg, Fred Wilpon, Steven Spielberg, Kevin Bacon, and Lady Victoria de Rothschild.

Madoff's Rolodex is probably worth a few bucks.

Bernard Maduff client list

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Madoff Whistleblower Blasts SEC

Fraud investigator Harry Markopolos blamed the Securities and Exchange Commission's "financial illiteracy" for failing to heed his warnings about money manager Bernard Madoff.

Mr. Markopolos had warned the SEC for nearly a decade that Mr. Madoff was operating a Ponzi scheme. Mr. Markopolos is set to testify before a House committee Wednesday, and 311 pages of his written testimony became public Tuesday evening.

In the documents, Mr. Markopolos described his efforts like a military intelligence operation. He said he and his team of investigators collected "intelligence reports" from field operatives and developed networks of contacts to provide information on Mr. Madoff's operation and the feeder funds that brought investors to the Madoff money-management business.

Markopolos Blasts SEC for 'Financial Illiteracy'

Text of Markopolos testimony

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Trader has suggestion for Bernie Madoff

New York Post

HSBC, UBS May Be Liable on Madoff as Fund Custodians

The fallout from the Madoff ponzi scam continues to widen. Bloomberg is reporting this morning that HSBC Holdings Plc and UBS AG may be liable for as much as $3.2 billion of losses. UBS and HSBC have reported $81.7 billion in writedowns and credit losses since the start of the global financial crisis in 2007.

HSBC, UBS May Be Liable on Madoff as Fund Custodians

Bernie Madoff's Victims: The Slideshow

Will Someone Kill Bernie Madoff?

As Laurence Leamer points out, not all of Bernie Madoff's victims were part of the "acquisitive community overly concerned with wealth and status" that populate the country clubs and ski slopes where Madoff's scheme was marketed by word of mouth. A great many of the victims are rumored to have connection with organized crime of one sort or another. And those people won't be very pleased with the news that the moan who was handling their money was a bigger criminal and more organized than they were.

Will Someone Kill Bernie Madoff?

Is Bernie Madoff's Life in Danger?