The full scope of Bernard Madoff’s Ponzi scheme won’t be known for months, if ever. But at this early stage, at least, the damage locally appears light. Madoff himself estimated the fraud at $50 billion. Banks, hedge funds, nonprofits and individuals all took hits. The biggest losers disclosed so far – $7.5 billion – were Walter Noel Jr. and his Fairfield Greenwich Capital Group, one of several so-called feeder funds that turned client money over to Madoff without proper due diligence or disclosure.
“It was such a cult thing,” Suzanne Murphy, managing director of hedge fund consultant Tri-Artisan told The Associated Press. She said she’d looked at Madoff’s operation six years ago and concluded it was fraud, AP reported.
