Bernie's Niece Shana May Have Generated False Trades

We’re getting a little weary of these reports about investigators honing in on the Madoff inner circle. It doesn’t seem to be moving anywhere, though obviously we don’t see what the FBI is saying.

But evidence does seem to be mounting that Madoff’s closest family members were directly involved in perpetuating the fraud. The Daily Beast has a number of updates:

Investigators say there is mounting circumstantial evidence that Peter, Shana, and Ruth, who was the bookkeeper, minded the store when Bernie was away and oversaw the generation of false trades. Just as the teller who is bilking the bank comes in early, leaves late, and doesn’t take vacations because he can’t afford to have a replacement scrutinize his activities, investigators say they believe Madoff must have had a small inner circle who could keep the scheme running in his absence.

As far as we know, this is the first time Shana (the one who’s married to the SEC guy) has been linked to the direct fraud. But we don’t know what “circumstantial” actually means. It could just be that investigators believe that someone else had to have generated the trades and that Peter, Shana and Ruth were the only ones in the right place and the right time.

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