Kingate Global's prospectus highlighted risks associated with Madoff Securities
(NEWSER) - One of the firms hardest hit by the $50 billion Bernard Madoff fraud warned investors in its prospectus that investing with Madoff was risky, saying explicitly that the brokerage “could abscond with those assets,” the Financial Times reports. Kingate Global told investors that they would not check the accuracy of the statements Madoff provided, and that “information supplied by the investment adviser may be inaccurate or even fraudulent.” Despite the disclaimer, Kingate clients poured $2.75 billion into the fund. More»
