Many people claim to have seen through Bernie Madoff’s Ponzi scheme. A lot of them, however, invested with him anyway–on the assumption that his game was insider trading.
Others spent months researching Bernie’s firm, however, only to decide that it just didn’t pass the smell test. As many of Wall Street’s best and brightest get skewered for falling for this scheme, therefore, let us celebrate those who didn’t.
Bloomberg: Jim Vos, who runs due diligence firm Aksia LLC, said he spent several months probing Madoff’s firm on behalf of clients, only to recommend against investing in it. Vos said eight “feeder funds” invested about $15 billion with Madoff. Vos declined to name the clients.
Among the red flags, Vos said: Madoff’s auditor, Friehling & Horowitz, operated from a 13-by-18-foot office in Rockland County, New York. Vos had an investigator stake out the office. A call to the New City, New York, office of Friehling & Horowitz after business hours wasn’t returned.
More as we get it…