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Bernard Madoff admits his now insolvent firm is ‘just one big lie’

As Madoff admitted his firm was “just one big lie” and “basically a giant
Ponzi scheme”, SEC chairman Christopher Cox launched an investigation into why
the agency did not act on warnings about Madoff’s activities as early as 1999,
which could now cost his investors around $50bn.

Nicola Horlick vehicle Bramdean revealed that 0.15% of its funds under
management were with Madoff’s firm and that two of its holding companies have
trading accounts with Madoff’s firm, representing around 9.5% of its net asset
value at 31 October 2008.

Bramdean quietly removed its website blurb about “robust and thorough due
diligence” being “at the heart” of its investment strategy.

Stephen Spielberg’s charity, Wunderkinder, is another victim of the fraud.

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