Fees to Firms Referring Clients to Madoff Topped $790 Million

The Wall Street Journal - Firms that funneled investors' money to Bernard Madoff likely took in at least $790 million in fees over the years, according to a review of lawsuits and other documents emerging in the wake of Mr. Madoff's arrest.Now, investors and authorities are trying to get some of those dollars back, though how successful they will be remains unclear.

Banco Santander SA, one of the biggest of the "feeders" to Mr. Madoff, had some $3 billion with him through its Geneva-based hedge-fund group, Optimal Investment Services SA, according to the firm. Santander earned $52.7 million in 2007 and $43.3 million in 2006 in "investment manager's fees" from its Madoff-run Strategic U.S. Equity Series, according to a 2007 annual report.

Optimal's relationship with Mr. Madoff, which dated back more than a decade, was described in a 2008 internal report reviewed by The Wall Street Journal as a "very profitable business for the group." At the time, the firm collected an average management fee of "above 2%" on money placed with Mr. Madoff. Santander declined to comment.

Mr. Madoff pleaded guilty last month to perpetrating a massive Ponzi scheme. Many of his victims don't expect to recover anywhere near 100 cents on the dollar and are looking down all avenues for possible relief.

Madoff Client List Is Disclosed in Filing

The Wall Street Journal - The names of thousands of clients who invested money with Bernard Madoff were made public Wednesday -- including legendary pitcher Sandy Koufax and Mr. Madoff's own lawyer, Ira Sorkin, who is defending him on charges that he ran a $50 billion Ponzi scheme.

The 162-page filing made in U.S. Bankruptcy Court in Manhattan doesn't list the amount each client invested.

Mr. Sorkin, who couldn't be reached for comment, previously denied investing with Mr. Madoff.

Some notable alleged victims appear on the list, including Fred Wilpon, owner of the New York Mets baseball team. It's unclear how many of the clients listed had money at the firm at the time of Mr. Madoff's arrest on Dec. 11.

The list includes numerous accounts held by the firm's outside auditors, Jerome Horowitz and David Friehling. Also among the names listed are Mr. Madoff's family members, including his sons, Mark and Andrew, and his brother, Peter, as well as the employees who ran the investment-advisory arm of the firm, where the alleged fraud took place. The employees included JoAnne "Jodi" Crupi, and a company owned by the family of Frank DiPascali, who was a key member of Mr. Madoff's investment business.http://online.wsj.com/article/SB123380673307551079.html?mod=testMod

Big Madoff Investor Found Dead

Thierry Magon de La Villehuchet, found with pills, box cutter nearby.

The Wall Street Journal - The co-founder of an investment advisory firm that lost $1.5 billion in the Madoff scandal was found dead Tuesday in an apparent suicide in his Manhattan office, police said.

Thierry Magon de La Villehuchet, 65 years old, was pronounced dead about 8 a.m. New York City police said they believe the death to be a suicide but were awaiting results of an autopsy to be completed Wednesday.

Workers discovered Mr. de La Villehuchet's body about 7:30 Tuesday morning at the Madison Avenue offices of Access International Advisors, police said. Mr. de La Villehuchet had lacerations on his arms, and police found a box cutter nearby as well as a bottle of what appeared to be sleeping pills.

If the death was associated with Mr. Madoff's alleged fraud scheme, it will be the highest-profile tragedy yet in a case that has touched investors world-wide. Thousands of individuals, institutions and nonprofit organizations are struggling to assess the fallout of the alleged fraud. Mr. Madoff was charged with fraud after authorities said he told his sons the business was "a giant Ponzi scheme" and that he had potentially lost at least $50 billion.http://online.wsj.com/article/SB123005864125030637.html