Austria takes over bank in Madoff case
Posted on: Friday, 2 January 2009, 07:42 CST
Austria's government says it has taken over a bank that reportedly invested $2.1 billion in American Bernard Madoff's allegedly fraudulent securities firm.
The demise of Bank Medici shows the reach of the alleged Ponzi scheme that includes losses of about $30 billion so far, The Wall Street Journal reported Friday.
Madoff, under house arrest, turned over a list of his assets to the Securities and Exchange Commission. While details of the report have not been released, investors caught in the scheme surmise Madoff hid substantial sums in offshore banks, the Journal said.
Madoff allegedly told his sons the fraud could exceed $50 billion.
Investors are also concerned authorities will force the return of dividends they may have received from Madoff that were not, in fact, dividends, but other investors' funds channeled to them.
Ponzi schemes operate by funneling new investor money to other investors in lieu of legitimate market earnings.
Source: United Press International
Related Articles
- CIRCA Places Winning Bid for Madoff-Owned Bracelet
- Laptop theft compromises Madoff victims
- New Bill Could Divert Billions in Small Business Contracts to Corporate Giants
- Can You Beat Bernie at Making Billions?
- Most needy Madoff victims to get payout
- N.Y. benches at risk due to Madoff name
- Madoff closer to a plea bargain
- Citigroup Paying $2B to Settle Enron Suit
- Ex-Enron CEO Kenneth Lay Surrenders
- Former McKesson Corp. Executive Indicted
 |
 |
User Comments (0)
RSS Feeds