Kingate Global, one of the biggest investors in Bernard Madoff’s alleged $50 billion fraud, explicitly warned its clients of the danger

Kingate Global, one of the biggest investors in Bernard Madoff’s alleged $50 billion fraud, explicitly warned its clients of the danger that the brokerage “could abscond with those assets,” and yet attracted $2.75 billion, The Financial Times reported, citing documents sent to investors.Kingate Global channelled its money to Bernard L Madoff Investment Securities to manage and highlighted the risk of giving custody of its assets Mr. Madoff, although he was not named in the documents. The investor also said it would not check the accuracy of statements he provided.The alert is the most explicit in a series of warnings from feeder funds that put almost all their cash with Mr. Madoff’s firm.Few of the funds named Mr. Madoff or his brokerage in their documents, while others insisted they were monitoring the performance of their manager to ensure trades were executed as claimed, the F.T. said.In its marketing documents, Fairfield Greenwich, which operated the biggest feeder fund, said that Madoff’s services were “essential to the continued operation of the fund.”

Kingate Global, one of the biggest investors in Bernard Madoff’s alleged $50 billion fraud, explicitly warned its clients of the danger

Kingate Global, one of the biggest investors in Bernard Madoff’s alleged $50 billion fraud, explicitly warned its clients of the danger that...

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