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A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated.
A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be "fettered", meaning that it invests only in funds managed by the same investment company, or "unfettered", meaning that it can invest in external funds run by other managers.
Schulte Roth & Zabel, LLP is a full service law firm with offices in New York, Washington, D.C., and London.
Bernard Lawrence Madoff is an American former market maker, investment advisor, financier and convicted fraudster who is currently serving a federal prison sentence for offenses related to a massive Ponzi scheme. He is the former non-executive chairman of the NASDAQ stock market, the confessed operator of the largest Ponzi scheme in world history, and the largest financial fraud in U.S. history. Prosecutors estimated the fraud to be worth $64.8 billion based on the amounts in the accounts of Madoff's 4,800 clients as of November 30, 2008.
Jacob Ezra Merkin is an American investor, hedge fund manager and philanthropist. He had been a fund manager and capital raiser until 2008 when one of the funds in Gabriel Capital LP, his $5 billion group of hedge funds became insolvent because a large portion of its assets was invested with the convicted Ponzi scheme operator Bernard Madoff. The fallout from his investment with Madoff has been extensive. He navigated a series of lawsuits without a finding of fraud or knowledge of the scheme, but agreed to repay any fees earned from the investment in Madoff historically. He had to resign a series of positions including his role as Non-executive Chairman of GMAC.
Union Bancaire Privée is a private bank and wealth management firm headquartered in Geneva. UBP is one of the largest private banks in Switzerland, and serves private and institutional clients. The bank was founded in 1969 by Edgar de Picciotto, and is one of the best-capitalized banks in Switzerland, with CHF 140.3 billion of assets under management.
Harry M. Markopolos is an American former securities industry executive and a forensic accounting and financial fraud investigator.
Carl J. Shapiro was an American businessman and philanthropist. In 1939 he founded Kay Windsor, Inc. in New Bedford, Massachusetts and built it into one of the largest women's clothing companies in the country. He was its president and chairman of the board and was director of VF Corporation, which acquired Kay Windsor in 1971; he retired five years later.
Fairfield Greenwich Group is an investment firm founded in 1983 in New York City. The firm had among the largest exposures to the Bernard Madoff fraud.
The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008. In December of that year, Bernie Madoff, the former NASDAQ chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC, admitted that the wealth management arm of his business was an elaborate multi-billion-dollar Ponzi scheme.
Participants in the Madoff investment scandal included employees of Bernard Madoff's investment firm with specific knowledge of the Ponzi scheme, a three-person accounting firm that assembled his reports, and a network of feeder funds that invested their clients' money with Madoff while collecting significant fees. Madoff avoided most direct financial scrutiny by accepting investments only through these feeder funds, while obtaining false auditing statements for his firm. The liquidation trustee of Madoff's firm has implicated managers of the feeder funds for ignoring signs of Madoff's deception. Although Madoff claimed to have executed the scheme alone, subsequent investigation has shown that he was assisted by a small group of close associates, as well as the feeders' self-interested indifference to the source of his investment returns.
Recovery of funds from the Madoff investment scandal has been underway since the scandal broke in December 2008. That month, recovery trustee Irving Picard received funds from the Bank of New York account where Bernard Madoff held new investments into his Ponzi scheme. As it has been concluded that no legitimate investments were made on the investors' behalf for at least the last 12 years of operation, recovery has proceeded on a "money in/money out" basis. Investors are entitled to receive no more than the nominal cash amounts that they paid in and did not subsequently withdraw, without regard to inflation, interest, opportunity cost or the false statements that Madoff provided them. Those statements combined to a total balance of approximately $64 billion, while the admitted claims amount to $18 billion. As of January 2021, the trustee had recovered $14.4 billion toward these claims through legal action against Madoff associates, feeder funds and beneficiaries of the scheme, and had made twelve distributions to investors.
Kingate Management is a Hamilton, Bermuda hedge fund. It was a feeder fund into the securities firm of Bernie Madoff, as part of the Madoff investment scandal.
Access International Advisors and Marketers, a Securities and Exchange Commission-registered investment advisor and a hedge fund of funds, was a research analyst investment agency that specialized in managing hedged and structured investment portfolios that involve commercial physical and biological research. It was a feeder fund into the securities firm of Bernie Madoff, as part of the Madoff investment scandal.
Tremont Group Holdings, Inc., a Delaware corporation headquartered in Rye, New York, is a hedge fund that was a feeder fund to Bernard Madoff's investment advisory firm in the Madoff investment scandal. It was the second-largest feeder fund to Madoff's firm, after Fairfield Greenwich, and received fees of 2% of assets for doing so.
Shana Diane Madoff, sometimes referred to as Shana Madoff Skoller Swanson, is an American attorney who is now a yoga teacher.
Eric J. Swanson is an American lawyer who worked at the U.S. Securities and Exchange Commission (SEC) and dated and eventually married the niece of Bernard Madoff while the SEC was investigating Madoff's investment firm for what was eventually revealed to be a massive Ponzi scheme. Swanson is currently the Senior Vice President, General Counsel, and Secretary of BATS Global Markets, the third-largest stock exchange in the United States.
Citco, also known as the Citco Group of Companies and the Curaçao International Trust Co., is a privately owned global hedge fund administrator headquartered in the British Virgin Islands, founded in 1948. It is the world's largest hedge fund administrator, managing over $1 trillion in assets under administration.
References
- ↑ Erin Arvedlund (August 11, 2009). Too Good to Be True: The Rise and Fall of Bernie Madoff. ISBN 9781101137789 . Retrieved February 10, 2013.
- 1 2 Deborah Hart Strober; Gerald Strober; Gerald S. Strober (2009). Catastrophe: The Story of Bernard L. Madoff, the Man Who Swindled the World. ISBN 9781597776400 . Retrieved February 10, 2013.
- ↑ David E. Y. Sarna (2010). History of Greed: Financial Fraud from Tulip Mania to Bernie Madoff. ISBN 9780470877708 . Retrieved February 10, 2013.
- ↑ Hawley, James P.; Kamath, Shyam J.; Williams, Andrew T. (2011). Corporate Governance Failures: The Role of Institutional Investors in the Global Financial Crisis. p. 213. ISBN 978-0812204643 . Retrieved February 6, 2016.
- ↑ Lionel S. Lewis (2012). Con Game: Bernard Madoff and His Victims. ISBN 9781412846363 . Retrieved February 10, 2013.
- ↑ Business Week. 2008. Retrieved February 10, 2013.
- ↑ Monty Agarwal (2011). The Future of Hedge Fund Investing: A Regulatory and Structural Solution for a Fallen Industry. ISBN 9780470557297 . Retrieved February 10, 2013.
- ↑ Papaioannou, Michael G.; Choi, Jay J. (2009). Credit, Currency Or Deratives: Instruments of Global Financial Stability Or Crisis?. ISBN 9781849506014 . Retrieved February 10, 2013.