Fifty billion dollars to be stolen by ONE man is a lot of money. How did he get away with that?!!?!? It really boils down to that fact that Bernard Madoff played on the greed of his investors who forked over huge sums of money in hopes of even larger returns. The old adage if it’s too good to be true means it usually is was ignored by many who saw visions of large dollar signs flashing before their eyes. Madoff was a consummate con man, but his deceit didn’t fool everyone.
Hedge fund investment adviser Aksia LLC warned clients not to put their money with Bernard Madoff after learning of “red flags” at his company, including that its books were audited by a three-person accounting firm. Bernard L. Madoff Investment Securities LLC used Friehling & Horowitz, an auditor operating out of a 13-by-18 foot location in an office park in New York City’s northern suburbs.
New York-based Aksia urged clients last year not to invest with Madoff’s firm after learning the identity of the New City, New York-based auditor, according to Jake Walthour, head of advisory services at Aksia. Friehling & Horowitz included one partner in his late 70s who lives in Florida, a secretary, and one active accountant, Aksia said.
“Our judgment was swift given the extensive list of red flags,” Aksia wrote Dec. 11 in a letter to clients.
Aksia’s Jim Vos said he spent several months probing Madoff’s firm on behalf of clients, only to recommend against investing in it. Vos, who had an investigator stake out the New City office, said eight “feeder funds” invested about $15 billion with Madoff. Vos declined to name the clients.
“I’m shocked by how investors turned a blind eye to returns that were too good to be true, constant steady small positive monthly returns,” Vos said. “When something is too good to be true, it probably is.”
It’s interesting that red flags were galore but only now, amidst all the other bad economic news is this getting any play in the media. in my wildest dreams the scenario playing out in my head is the corporate media is finally getting their revenge on a Bush administration which had so easily manipulated it for every conceivable illegal and immoral purpose, and like a woman scorned has decided to get back at its former lover with all the bad news a President concerned with his legacy cannot afford. Possibly, however, something more sinister than that is at play with the release of all of the bad news at the end of a president’s tenure, but I can’t say what it is…..yet.