Hours Before Madoff's Demise, Funders Promised More Cash

Newly released documents show that one day before Bernard Madoff was arrested for running an alleged Ponzi scheme, a Connecticut hedge fund that funneled to him promised to raise more cash for him.

Massachusetts Secretary of State William Galvin released the documents Wednesday in a regulatory complaint against Fairfield Greenwich Group, saying the company let its investors down.

The documents provide the best insight yet into how these so-called feeder funds – knowingly or unknowingly - raised investor money for Madoff’s Ponzi scheme. E-mail exchanges between employees at Fairfield Greenwich discuss courting wealthy clients, such as in this e-mail.

This is an unusual one...  appetite $50 to $100 million in bites... so worth our time... she has always heard about Madoff, but hears things that scare her... so neutralize the scare with our transparency... this will be a piece of cake.

This program aired on April 2, 2009. The audio for this program is not available.

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Curt Nickisch Business & Technology Reporter
Curt Nickisch was formerly WBUR's business and technology reporter.



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