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Madoff May Have Paid Off Austrian Banker

She's accused of sending him investors' cash, getting kickbacks

By Rob Quinn, Newser Staff

Posted Jul 3, 2009 2:59 AM CDT

(Newser) – The head of Bank Medici is being probed by authorities in the US, the UK, and her native Austria over alleged kickbacks she received from Bernard Madoff, the Wall Street Journal reports. Sonja Kohn is believed to have pocketed $40 million in return for turning three funds she managed into "feeder funds" that funneled $3.5 billion to Madoff.

The investigations don't charge that Kahn knew Madoff's fund was a Ponzi scheme but they do charge that she failed to inform investors their money was going to Madoff—and that she was receiving payments from the financier. Kahn, who could face up to 20 years in jail on fraud and conspiracy charges filed in the US, denies all accusations.

[Images (2)]

[Quotes (2)]

A person passes the name plate of the Bank Medici in Vienna, Austria. The bank 's founder and majority shareholder is being investigated over alleged kickbacks from Bernard Madoff. (AP Photo/Ronald Zak)

A police car stands in front of the building of the Bank Medici in Vienna, Austria. (AP Photo/Ronald Zak)

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I am actually the greatest Madoff victim. It is a tragedy for my family, my company and for me personally.
- Sonja Kohn, founder of Medici Bank

It does not appear that Kohn, or Bank Medici, ever disclosed to investors in the feeder fund that Kohn was personally receiving payments from Madoff. - US affidavit against Sonya Kohn

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Madoff May Have Paid Off Austrian Banker