Mad Money Machine

Madoff Ponzi Scheme: Cover for Other Frauds?

By now you’ve heard about the alleged multi-billion, multi-year Ponzi scheme by Bernard Madoff and how so many other hedge funds were invested with him and how they lost money. Here’s the question: Are we sure those hedge funds lost their money by investing with Madoff? Maybe they did lose some money but maybe they are inflating their losses. Were they running a Ponzi scheme of their own and simply used the Madoff scandal as a scapegoat? Sounds like good cover to me.  How many other cockroaches will come out of the woodwork claiming their losses were due to Madoff? Hat tip to my wife for the idea.