Abu Dhabi Investment Authority (ADIA) could be a serious casualty of one of the largest investment frauds in history

Abu Dhabi Investment Authority (ADIA) could be a serious casualty of one of the largest investment frauds in history, the New York Times reported Friday.<br /><blockquote>The US newspaper said ADIA - which is the world’s largest sovereign wealth fund - indirectly invested $400 million into Bernard L. Madoff’s scheme in 2005 through investment fund, Fairfield Sentry Fund.</blockquote><br />This investment was revealed in a profile of the firm drawn up for a prospective buyer in 2007, according to the New York Times.A number of private investors, banks and investment firms were shocked to recently discover they had fallen victim to a fraudulent investment scheme after Madoff - a Wall Street broker and the former chairman of Nasdaq - was accused of running a multibillion-dollar scam.A note on Fairfield Greenwich Group's website states that more than half of its investments are tied up in vehicles connected to Bernard L. Madoff Investment Securities (BLM).<br />Farfield said, as of Nov. 1, its assets under management totalled approximately $14.1 billion, of which approximately $7.5 billion was invested in vehicles connected to BLM.The New York Times said that Fairfield was one of BLM’s largest investors and ADIA in turn was one of Fairfield’s largest investors."Even after the investment authority took two significant redemptions from the fund, in April 2005 and 2006, its stake the following year of $132 million made up 2 percent of the fund’s assets under management," the newspaper said.

Abu Dhabi Investment Authority (ADIA) could be a serious casualty of one of the largest investment frauds in history

Abu Dhabi Investment Authority (ADIA) could be a serious casualty of one of the largest investment frauds in history, the New York Times rep...

Read more »