The role of America's federally regulated banks in the $50bn Bernard Madoff investment scandal has come into question after it emerged that a number of victims of his alleged Ponzi scheme thought they had invested their money with an ordinary bank, The Times reports.
Two law firms in Florida, which are gathering claims from Madoff victims, are both representing a couple who say that they believed that they had invested about $1m (£688,000) with the Westport National Bank, a regulated savings bank in Connecticut, rather than with Mr Madoff. The Florida case raises concern that a new wave of unwitting victims may emerge from Mr Madoff's investment scheme. The FBI and the Securities and Exchange Commission (SEC) are already investigating the role of certain hedge funds that provided Mr Madoff with new clients. The biggest of these is Fairfield Greenwich,...
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