Feeder Fund Managers Probed In Madoff Case


Bernard Madoff’s sentencing to 150 years in prison marked “the end of the beginning” of an investigation expected to explain how the disgraced financier pulled off perhaps history’s largest financial fraud and who helped him, reports the Associated Press. A source told the AP that prosecutors expect to charge at least 10 more people in the case. Besides the family, there are questions about Frank DiPascali, chief financial officer of Madoff’s money management business, and others who funneled billions of dollars of investments to the firm, so-called “feeder fund managers.”

Sentencing of the main wrongdoer often “will take the wind out of the sails of an investigation,” said William Devaney, a former federal prosecutor. “However, this is an atypical investigation.” One of Madoff’s victims said, “There’s absolutely no way he could have done this all by himself.”

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