Saturday, December 13, 2008

Anybody Who Invested with Madoff Didn't Do Their Due Dillgence

From Bloomberg:

“Whenever a fund had money with Madoff, it raised a red flag,” said [ Salomon Konig, chief investment officer for Artemis Capital Partners LLC in Aventura, Florida, which invests with hedge funds], who said he rejected at least 20 funds of funds as potential investments for that reason alone. “It means that they didn’t do their due diligence they were supposed to and were chasing those returns.”

7 comments:

  1. People were investing in Madoff even though his numbers did not make sense because they thought he was insider trading.

    “””“One Madoff investor, himself a legend, told me that Madoff's performance "just doesn't make sense. The numbers can't be straight." Another sophisticated Madoff investor actually went through trade confirms in order to reverse-engineer the strategy and said, "it doesn't add up."

    So why did these smart and skeptical investors keep investing? They, like many Madoff investors, assumed Madoff was somehow illegally trading on information from his market-making business for their benefit. They didn't consider the possibility that he was clean on that score but running a good old-fashioned Ponzi scheme.”””””””



    http://finance.yahoo.com/tech-ticker/article/145115/I-Knew-Bernie-Madoff-Was-Cheating--Thats-Why-I-Invested-with-Him

    DJ

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  2. This makes no sense.

    How was Madoff supposedly trading billions on insider trades? Insiders get caught trading $10,000, never mind swinging a multi-billion market moving line.

    He was producing steady month after month returns of between 8% and 10%. How do you do that on insider trading?

    How could he possibly have month after month info?

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  3. It is interesting to read Mr. Salomon Konig´s comments on Madoff case. Mr. Konig ran a "mini Ponzi" in Venezuela by 1993. He also swindled a lot of jewish investors, imcluding me. That is why he had to leave Venezuela. He is not allowed to return nor his brothers.

    Carlos Vainberg (linkline_cv@cantv.net)

    ReplyDelete
  4. It is interesting to read Mr. Salomon Konig´s comments on Madoff case. Mr. Konig ran a "mini Ponzi" in Venezuela back in 1993. He swindled several members of the jewish community. He had to leave the country and is not allowed to return.

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  5. I am astonished to read Mr. Salomon Konig´s comments on Madoff case. He along with his brother Harry ran a “mini Ponzi” in Caracas, Venezuela back in 1993. They swindled many people of the jewish community, including me. They had to leave the country at once. They cannot return unless they want to live in jail.

    Carlos Vainberg (radicalw9@cantv.net)

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  6. I am astonished to read Mr. Salomon Konig´s comments on Madoff case. He along with his brother Harry ran a “mini Ponzi” in Caracas, Venezuela back in 1993. They swindled many people of the jewish community, including me. They had to leave the country at once. They cannot return unless they want to live in jail.

    Carlos Vainberg (radicalw9@cantv.net)

    ReplyDelete
  7. Salomon Konig is a thief, similar to Madoff. He ran a money laundering scheme in Venezuela and ran out with the investors money when authorities closed his business.

    ReplyDelete