An article in the Wall Street Journal this morning says that prosecutors are investigating an “unnamed research firm” that Madoff paid. Since Madoff was not, apparently, actually trading, it seems he was merely using the research firm as a front. He’d pay them to do research so he would look more legitimate, but he wouldn’t use their research.
That’s pretty strange. If you were paying for high quality research, which is damn expensive, wouldn’t you eventually be tempted to start making trades on it. The temptation to trade would be even greater if you were sitting on piles of cash, as Madoff seems to have been until shortly before his ruin. Was Madoff super-humanly immune to the temptation to actually invest?
More importantly, we want to know which firm Madoff was using. If he really was using this as a cover or front for his scam, he must have been telling people about it. Otherwise, what’s the point? So let’s crowd source this. If you know which firm Madoff was using for research, please email [email protected] As always, we’ll keep your identity completely confidential.