Madoff Fund Trying To Raise Money Until The End Newly released documents show that one day before Bernard Madoff turned himself in for running a Ponzi scheme, a Connecticut hedge fund that fed him investor money was still promising to raise hundreds of millions of dollars for him.
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Madoff Fund Trying To Raise Money Until The End

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Madoff Fund Trying To Raise Money Until The End

Madoff Fund Trying To Raise Money Until The End

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RENEE MONTAGNE, Host:

From member-station WBUR in Boston, Curt Nickisch reports.

CURT NICKISCH: Unidentified Man: (Reading) This is an unusual one, appetite 50- to 100-million dollars in bites, so worth our time. She's always heard about Madoff but hears things that scare her. So, neutralize the scare with our transparency. This will be a piece of cake.

NICKISCH: This naked view into the inner workings of a Madoff feeder fund is part of a stack of documents that the Massachusetts Secretary of State William Galvin has made public. Madoff pleaded guilty last month, but Galvin says Fairfield executives earned millions from their business with Madoff and were therefore codependent.

WILLIAM GALVIN: They had a blind spot, we had alleged, because of the significant fees they were making with Madoff, and culminating with their willingness to try to help Madoff escape SEC detection, as feeble as that was.

NICKISCH: Unidentified Man: (Reading) One, how are the trades actually distributed to each of the accounts. Two, how do you know the trade isn't a Ponzi scheme?

NICKISCH: Sharton has been working with Madoff investors but still emphasizes...

BRENDA SHARTON: We also have to be careful and mindful that we've only heard half of the story. Fairfield, when they have a chance to respond to the allegations, you know, may have a different story to tell.

NICKISCH: Through 2009, we will engage in no other fundraising initiatives. Our mission is to remain in business with you and to keep your trust.

NICKISCH: Madoff turned himself in the next day. For NPR News, I'm Curt Nickisch in Boston.

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