Hedge Funds

Madoff fallout could cripple many wealthy, while institutions look safer


If the federal charges prove true, and Bernie Madoff was running the mother of all Ponzi schemes, the fraud and fallout would be one of the largest of any financial chicanery in modern times and would certainly be the largest investment fraud in history. While Madoff appears to have raised funds from a wide variety of wealthy clients and a number of funds of funds, Madoff’s activities had raised red flags for years and prompted many investors to keep their distance. Regulators previously looked at Madoff, as well, but apparently had not found a smoking gun.

“The institutional