New $130M Global Ponzi Scheme Busted

By Mary Papenfuss,  Newser User
Posted Jul 19, 2009 7:53 AM CDT
Cynthia Friedman, a victim of Bernard Madoff's Ponzi scheme, speaks to reporters before Madoff's sentencing outside Manhattan federal court last month.   (AP Photo/Seth Wenig)
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(Newser) – London investigators have uncovered a $130 million Ponzi scheme that duped hundreds of celebrities and businessmen around the world, reports the Telegraph. The scammers were so slick that many of their victims refuse to believe they were sucked in by the ersatz high-yield fund, and are still expecting payment, according to authorities. "These victims have been totally hoodwinked," says one investigator. The probe is focusing on a Knightsbridge-based finance firm and several companies linked to it.