Madoff's service 4 special clients- some investors knew it was a fraud & used it to their advantage

[Liberal_in_LA]

According to a person familiar with the matter, DiPascali has no evidence that other Madoff family members were participants in the fraud. However, he is prepared to testify that he manipulated phony returns on behalf of some key Madoff investors, including Frank Avellino, who used to run a so-called feeder fund, Jeffry Picower, whose foundation had to close as a result of Madoff-related losses, and others.

If, for example, one of these special customers had large gains on other investments, he would tell DiPascali, who would fabricate a loss to reduce the tax bill. If true, that would mean these investors knew their returns were fishy.

Explains the source familiar with the matter: "This is a group of inside investors -- all individuals with very, very high net worths who, hypothetically speaking, received a 20% markup or 25% markup or a 15% loss if they needed it." The investors would tell DiPascali, for example, that their other investments had soared and they needed to find some losses to cut their tax bills. DiPascali would adjust their Madoff results accordingly.

:wow: :wow: :wow: :wow:

http://money.cnn.com/2009/04/24/news/newsmakers/madoff.brief.fortune/index.htm?cnn=yes

[Octafish]

1. Greed is America's Number One industry.

Weird, given how little it works.

[leveymg]

2. As I said, a snake swallows its own tail - gains and losses - this was all a circle, the biggest

"victims" (the feeder funds) are the co-conspirators. This is way larger than a one-man Madoff "Ponzi scheme."

[seemslikeadream]

3. oh I thought he stole all that money all by himself

:crazy:

[dmr]

4. Hope to see the IRS jump on these tax evaders

who, I'm sure believe they are the salt of earth.

I've always said you can make nothing look like something on paper; and even something look like nothing, if you're so inclined.