FAIRFIELD, Conn., April 1 (UPI) -- A securities investigator in Connecticut testified that Madoff associates knew he was running an illegal Ponzi operation, but chose to ignore the warning signs.
Investigator Edward Seidle testified that associates of disgraced U.S. financier Bernard Madoff that handled money for Fairfield, Conn.'s retirement plan presumably were aware he was running an illegal operation. He specifically named Tremont Properties and Maxam Capital in a sworn affidavit, CNN reported Wednesday.
Madoff, who will be sentenced in June, pleaded guilty to 11 federal counts including money laundering and perjury in a scheme estimated to have lost clients as much as $50 billion.
In his testimony, Seidle said, "it is my opinion … that (the managers of feeder funds) were all aware that Bernard L. Madoff was engaging in illegal conduct."
For years, he said, finance professionals had suspicions over returns Madoff claimed to have earned. Those dealing with his business received fees "far above normal," CNN said. In addition, the investigator testified that Madoff demanded a high level of secrecy about his business.
