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.
June 22, 2009; 3:05 PM ET
Categories: The Ticker | Tags: Bernie Madoff
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