Madoff Laundered Money Overseas: Feds

Fraud extended to London, US says

By Clay Dillow, Newser Staff

Posted Mar 12, 2009 7:50 AM CDT

(Newser) – At least a quarter-billion dollars of client funds passed through Bernard Madoff's London operation in money-laundering maneuvers that involved the trading operation as well as the firm's investment-advisory arm, the US government alleges. Madoff's sons, who have denied involvement in the Ponzi scheme in which their father is about to plead guilty, ran the trading division, the Wall Street Journal reports.

Madoff established a London office in 1983 but apparently paid it little attention until the late '90s, when he infused cash into the operation and expanded the staff. He later installed a camera to monitor the length of lunches, a former employee told the Journal. Around the same time, in 2002, a series of wire transfers began that created the impression the firm was engaging in stock trading in Europe.

Accused financier Bernard Madoff leaves federal court January 14, 2009 in New York City. (Getty Images)

Bernard Madoff arrives at Manhattan federal court for a hearing to discuss potential conflicts of interest between him and his lawyer, Tuesday, March 10, 2009, in New York. (AP Photo/ Louis Lanzano)

Bernard Madoff arrives at Manhattan federal court, Thursday, March 12, 2009, in New York. (AP Photo/ Louis Lanzano)

Bernard Madoff exits Manhattan federal court in New York on Tuesday, March 10, 2009. Madoff will plead guilty Thursday to 11 felony counts including money laundering, perjury and securities fraud. (AP Photo/Louis Lanzano)

Bernard Madoff exits Federal Court in Manhattan, New York on Tuesday, March 10, 2009. Madoff will plead guilty Thursday to 11 felony counts including money laundering, perjury and securities fraud. (AP Photo/David Karp)

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Madoff Laundered Money Overseas: Feds

Fraud extended to London, US says

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OTHER STORIES ON OUR RADAR

London • felony • money laundering • Ponzi scheme • Bernard Madoff • Ruth Madoff • Bernard L. Madoff Investment Securities

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Madoff Family Members May Face Charges

Feds investigating 20 others; 'he's jerking everyone around'

Madoff Auction Makes $2M

Bernie's used boxers: The perfect holiday gift!

Madoff Lover Still Talking About Tiny Penis

Oh, and forget about her being in the clear—Weinstein says she 'had to know'

Madoff Yanked $165M from London Branch Just Before Bust

Cash transferred to scammer vanished

Madoff's $100K AmEx Bills Point to Rampant Abuse

Investors' money kept family living luxe

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Newser By Users

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