Sunday, 1 March 2015
Last updated 2 days ago
Sep 18 2013 | 12:43pm ET
December marks the five-year anniversary of Bernard Madoff's arrest—and that means that prosecutors have only three more months to file charges stemming from his $65 billion Ponzi scheme.
Authorities reportedly continue to probe both Madoff's niece, Shana Madoff Swanson, a longtime executive at Bernard L. Madoff Investment Securities, and Paul Konigsberg, an accountant whom Madoff victims say funneled money into the scam. Neither Swanson no Konigsberg has ever been accused of wrongdoing, although both have faced lawsuits stemming from Madoff's fall.
Madoff investors sued Konigsberg, but the complaint was dismissed in 2011. Swanson, whose father, Madoff's brother Peter, pleaded guilty in the case and was sentenced to 10 years in prison, was sued along with other Madoff family members by the trustee in the case for nearly $200 million.
Prosecutors also reportedly continue to investigate Bernard Madoff's surviving son, Andrew Madoff, who served as director of trading at his father's firm, and JPMorgan Chase, for allegedly failing to alert the authorities to its suspicions about Madoff. Andrew's older brother, Mark, committed suicide three years ago, on the anniversary of his father's confession.
To date, eight people, including Bernard and Peter Madoff, have pleaded guilty in the Madoff scandal. Five others, all former Madoff employees, are set to stand trial on fraud charges next month. The statute of limitations on crimes stemming from the fraud will expire in December.
Swanson—who is married to a former SEC lawyer who participated in one of the regulator's examinations of the Madoff firm which failed to detect the fraud—was a top lawyer at her uncle's firm and a compliance official. Konigsberg, a longtime Madoff friend and the only non-family member to serve as a shareholder of Madoff's London business, counted many victims as clients, and did the taxes for two Madoff family foundations. Madoff often referred investors to Konigsberg for tax services.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…