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.