Madoff’s Sons Attempted to Persuade Wachovia Exec to Invest in The Madoff Fund

It’s hard to believe that the two Madoff sons, Mark and Andrew, were not involved in their father’s ponzi-scheme. Also naive, if not illogical, is to think that it was just coincidental when everything was unraveling that the sons found out and turned Bernie in. In any event, a story in Syracuse.com today offers the best evidence yet of Madoff sons involvement in the scheme.

Dalton Givens saw the warning signs.

Madoff’s sons wined and dined Givens, then a senior vice president of Wachovia Securities, at a steakhouse in Charlotte, N.C., to try to persuade Wachovia to invest in Madoff’s hedge fund.

Givens, now retired from the firm and living in Boonville, said he took a few sniffs and didn’t like the aroma.

Among the red flags cited by Givens and others:
– Madoff ran a multibillion-dollar hedge fund, but he hired a one-man accounting firm to audit his books.
– Instead of depositing investors’ money with an independent third party, Madoff used his own firm as the custodian.
– Madoff wouldn’t share much detail about his investment strategy with potential investors, claiming he had to keep it a secret to maintain his advantage.

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