5 Men Who Fueled Madoff's Ponzi Scheme

By Harry Kimball,  Newser Staff
Posted Dec 27, 2008 1:14 PM CST
Investors inquiring about their money and others gather in the lobby of the building where Bernard L. Madoff Investment Securities LLC has their offices.   (AP Photo)
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(Newser) – Government investigators are turning their eye to the middlemen who led clients into Bernard Madoff's long-running Ponzi scheme. The Wall Street Journal profiles five of them:

  • Robert Jaffe: A dashing Florida philanthropist, he funneled tony clients to ex-boss Madoff. Jaffe says he is a "victim of these tragic events."
  • Stanley Chais: His exclusive fund, "The Arbitrage," was secretly a pipeline to Madoff. Chais' family foundation is "wiped out" by the scandal, its director said.

  • Jeffrey Tucker: A former SEC enforcement officer, he enabled the partnership between Madoff and Fairfield Greenwich Group—which lost about $7.3 billion.
  • Andres Piedrahita: After marrying into Fairfield Greenwich, he spread Madoff's reach to the high society in Europe and Latin America.
  • Robert Schulman: An old Wall Street hand, he encouraged investors with his track record at firms like Smith Barney and Shearson Lehman Brothers. His clients lost $3.3 billion.