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Possible Madoff Co-Conspirators Charged

The SEC today charged a brokerage firm called Cohmad Securities and four people with securities fraud, saying they were "feeder funds" that channeled billions into Bernie Madoff's alleged $50 billion Ponzi investment scheme.

The SEC charged that Madoff, currently in jail, controlled Cohmad.

There have been two big mysteries all along with Madoff:

a) Where is all the money?

b) Could Madoff have pulled off the whole thing by himself, with only a few secretaries and a bogus auditor?

The answer to a) is still pending. So far, Irving H. Picard, the trustee appointed with trying to get Madoff investors' money back, has recovered about $1 billion.

As for b), Madoff said he acted alone. But that does not appear to be the case.

“Although Madoff stated he was operating alone, our investigation has yielded significant evidence that, in fact, a variety of other people helped Madoff prey on innocent victims,” David Sheehan, the court-appointed lawyer for Picard, said in the Boston Globe. “We are bringing this lawsuit to help recover, at the very least, the commissions that Madoff’s enablers generated for knowingly introducing unsuspecting investors to Madoff,” Picard said, according to the Globe.

-- Frank Ahrens
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By Frank Ahrens  |  June 22, 2009; 3:05 PM ET
Categories:  The Ticker  | Tags: Bernie Madoff  
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Comments

Madoff Investigators Want To Delay Restitution Determination: http://www.newsinferno.com/archives/7097#more-7097

Posted by: Cynthia111 | June 22, 2009 3:52 PM | Report abuse

While it's doubtful Madoff will ever enjoy freedom again, his lack of honesty in dealing with investigators should add on more additional time to his sentence and those who will eventually be accomplices. They deserve a lot of hard time too.

Posted by: Leofwine | June 22, 2009 6:35 PM | Report abuse

SEC SHOULD BE CHARGED AS WELL FOR PLAYING ALONG WITH WALL STREET CROOKS, AS ONE OF THEM.

Posted by: mtavro | June 22, 2009 7:59 PM | Report abuse

I think most of the "Investment Advisors" from the feeder funds will end up coughing up all of their commissions as well as any 'profits' they obtained on their individual investments. People like Ezra Merkin and that advisor from Los Angeles, whose name escapes me at the moment (who averaged something like 50% per year return on investment by Madoff on his personal assets while his clients were getting 12%), advertised that they performed extensive due diligence when they did none at all. As a retired stockbroker, I find it unfathomable that supposedly sophisticated advisors did not realize that something hokey was going on.

Posted by: theStockman | June 22, 2009 9:14 PM | Report abuse

SEC, SHOULD BE CHARGED ALONG WITH WALL STREET CROOKS, AS ONE OF THEM.

Posted by: mtavro | June 22, 2009 9:27 PM | Report abuse

The SEC was certainly asleep at the wheel, but Madoff investors are fortunate to be able to at least benefit from SIPC insurance up to half a million. That should at least keep investors out of poverty, which is more than what other victims of various scams receive. The arguments about due diligence have little merit as many financial investments touted as safe are in actuality not transparent, are unregulated or poorly regulated, insufficiently audited, and generally tainted with conflicts of interests by their promoters.

Posted by: Lassie84 | June 25, 2009 10:25 PM | Report abuse

I'm sorry, but unless you took the family's passports then they are not being punished. Bernie and family had years to hide assets in different nations under different names.

Posted by: elp275 | June 27, 2009 5:10 PM | Report abuse

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