Madoff: Banks, Hedge Funds Were “Complicit” in his Ponzi Scheme


Bernard Madoff, serving a 150-year prison term for his huge Ponzi scheme, told New York Times reporter Diana Henriques that unidentified banks and hedge funds were “complicit” in his elaborate fraud, a shift from earlier claims that he was the only person involved. Henriques is writing a book about the case.

Madoff pointed to the “willful blindness” of various banks and hedge funds, and their failure to examine discrepancies between his regulatory filings and other information available to them. “They had to know,” Madoff said. “But the attitude was sort of, 'If you're doing something wrong, we don't want to know.' ” Madoff’s scheme lasted at least 16 years and consumed $20 billion in lost cash and almost $65 billion in paper wealth.

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