The Bernie Madoff saga isn’t over, six years after his fall from grace. In Geneva, 5 money managers of Aurelia finance are being indicted for “aggravated mismanagement” of clients’ funds, as reported by Bloomberg. Aurelia was one of many “feeder funds” that pooled assets to invest with Madoff.
Bernie Madoff, 67 is serving a 150 year sentence for fraud, as he was running a $17. 5 billion ponzi scheme that used funds from new investors to pay back old clients.
This could potentially be the first case before a European court involving fraud of one of Madoff’s feeder funds. Erik Bomans of Deminor Group said, “It will be the first important test for investor protection over the Madoff fallout in Europe.”
Francois Canonica represents 75 investors who invested 60 million Swiss Francs or $62 million with Aurelia. He commented, “the traditional rules by which fund managers are obliged to diversify investments were gravely violated.”
Charles Poncet, who represented Aurelia when the case was first filed in 2009, but has since stepped away from it, said, “This is a ridiculous case brought by an overeager prosecutor who thinks making a bad investment can be a crime.”