Tough Economy Bares a Slew of 'Mini-Madoffs'

Trustee says bank enabled fraud by ignoring warning signs

(NEWSER) - Bernie Madoff's Ponzi scheme survived for so long because HSBC ignored "red flags" and kept funneling investors' money to the fraudster, says the trustee trying to reclaim money for Madoff's victims. Irving Picard is suing the bank and a group of feeder funds for at least $9 billion, the New York Times reports. More»

Peter Madoff subject of 'wide-ranging' Ponzi scheme inquiry

(NEWSER) - Finance's most-tarnished family name took another hit yesterday when it emerged that Peter Madoff is the target of a criminal probe relating to big brother Bernie's Ponzi scheme. A court filing states that the Manhattan US attorney's office is conducting an "active and wide ranging" probe of Peter, who was chief compliance officer at Bernie's firm, the New York Post reports. More»

Ponzi kingpin now sharing cell with drug offender

(NEWSER) - Bernie Madoff ran the druggiest, most decadent securities fraud in town, according to court papers filed yesterday. Madoff's offices were so awash in cocaine—paid for with investors' money—that it was nicknamed "the North Pole," and the firm hosted drug-fueled parties featuring topless waitresses, according to a lawsuit filed by swindled investors. Nuggets about Madoff's precipitous fall from the high life are tucked throughout the 276-page document seeking restitution from Madoff, family members and other financial entities who knew bout the scam, according to the suit. More»

(NEWSER) - Investigators see yesterday's guilty plea of Bernard Madoff's right-hand man as a major breakthrough in their efforts to untangle the elaborate Ponzi scheme, BusinessWeek reports. Frank DiPascali, chief financial officer at Madoff's firm, has promised to cooperate with prosecutors and is expected to name other people involved in the scam and to help trace assets Madoff may have stashed around the world. More»

Investigator's questions could have exposed Ponzi scheme in 2004

(NEWSER) - An SEC investigator whose questions could have exposed Bernard Madoff's fraud in 2004 was shifted to an unrelated case after raising the alarm, the Washington Post reports. One of the supervisors who told the staffer to focus instead on a mutual funds investigation later married Madoff's niece, and the relationship is now being probed by the SEC. More»