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WORLD> Europe
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Alleged Madoff fraud hits Europe and Asia
(Agencies)
Updated: 2008-12-15 23:26 Alleged victims span from the super rich to pensioners, powerful financial institutions to local charities. Some investors claim they've been wiped out, while others are still likely to come forward. Among those confirming exposure on Monday, Banco Santander, the largest bank in the euro zone by market capitalization, said its clients have euro2.33 billion ($3.07 billion) in exposure with Madoff, mostly through a fund called Optimal Strategic US Equity. Banco Santander said it has another position of euro17 million of its own money through another fund which it did not name. Royal Bank of Scotland, Britain's second-largest bank, which is now 58 percent owned by the British government, said it could lose around euro400 million pounds ($600 million) through exposure in trading and collateralized lending to funds of hedge funds invested with Bernard L Madoff Investment Securities LLC. Nomura Holdings said it has 27.5 billion yen ($306 million) in exposure, but added that any losses were likely to be limited compared to its capital base. Man Group, the world's largest publicly traded hedge fund manager, said its risk came through two funds that are directly or indirectly sub-advised by Madoff Securities through RMF, its predominantly institutional fund of funds. "RMF will continue to monitor and evaluate the situation on behalf of its investors and will take appropriate steps to seek recovery of investor assets," Man Group said in a statement. The new reports follow statements on Sunday from Switzerland's Reichmuth & Co. that the private bank has $327 million at risk and from BNP Paribas that estimated its exposure at euro350 million. The assets of Bernard L. Madoff Investment Securities LLC were frozen Friday in a deal with federal regulators and a receiver was appointed to manage the firm's financial affairs.
Among US investors, the Boston-based Robert I. Lappin Charitable Foundation, a charity that financed trips for Jewish youth to Israel, sacked its staff after revealing that the money for its operations was invested with Madoff. New Jersey Sen. Frank Lautenberg, one of the wealthiest members of the Senate, entrusted his family's charitable foundation to Madoff. Lautenberg's attorney, Michael Griffinger, said they weren't yet sure the extent of the foundation's losses, but that the bulk of its investments had been handled by Madoff. Lautenberg's foundation handed out more than $765,000 to at least 100 recipients in 2006, according to the most recent listing on Guidestar, which tracks charitable organization filings. The foundation helps support a variety of religious, educational, civic and arts organizations in New Jersey and elsewhere, and its contributions range from a gift of than $300,000 to the United Jewish Communities of MetroWest New Jersey to a $2,000 donation to a children's program at the Hackensack Medical Center. Reports from Florida to Minnesota included profiles of ordinary investors who gave Madoff their money. Some had been friends with him for decades, others were able to invest because they were a friend of a friend. They told stories of losing everything from $40,000 to an entire nest egg worth well over $1 million. They join a list of more powerful investors that have come forward, all worried about the extent of their losses. The roster of names include former Philadelphia Eagles owner Norman Braman, New York Mets owner Fred Wilpon and J. Ezra Merkin, the chairman of GMAC Financial Services, among others.
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