Today it is exactly 5 years since Bernard Madoff’s sons went to the authorities to tell them about their father’s massive Ponzi scheme. Offshore tax havens played a key role in his fraudulent investments, as was reported by the Tax Justice Network and the New York Times, among others.
Five years later, funds operating in secrecy jurisdictions are still trying to clean up the mess.
Last week the BVI Beacon reported:
“A Virgin Islands-registered “feeder fund” that funneled clients’ money into Bernie Madoff’s $65 billion Ponzi scheme is suing an Irish subsidiary of HSBC bank for $539 million, alleging that the bank breached an agreement by not carrying out adequate due diligence on Mr. Madoff.”
“The fund, Defender Ltd., filed the suit in an Irish court Monday against the Ireland-registered HSBC Institutional Trust Services Incorporated.”
“However, Irving Picard, the US trustee liquidating BLMIS [Bernie L. Madoff Investment Securities], has previously alleged that Defender and affiliate entities that did business in the name of the Reliance Group also ignored warning signs that Mr. Madoff was running a Ponzi scheme.”