The recently uncovered pyramid scheme run by Wall Street huckster Bernard Madoff has led to massive losses by clients worldwide. Those fooled by his elaborate ruse has included several major European banks, one of the world’s richest women and charities who will be forced to shut down. Despite warnings made as far back as 1999, Madoff’s fraud grew to an estimated worth of over $50 billion.Among those customers fooled by Madoff and liable to lose a boatload of money is Chilean brokerage house Celfin Capital SA. The investment firm may have its 2008 profits slashed in half and will try to pay back approximately $10 billion to clients tied into the Madoff scheme.
Celfin isn’t the only Latin American firm feeling the pinch over Madoff’s ruse:
Among Latin American companies, Peru’s Credicorp Ltd. said Dec. 16 that it had $1 million invested with Madoff. Peru’s largest financial-services company also had $3.5 million at risk in transactions secured by investments with his Bernard L. Madoff Investment Securities LLC firm.Image- AP
For Celfin, the losses come after the firm fired as much as a 10th of its workforce this quarter amid an economic slowdown stemming from the global credit crunch.
Online Sources- Fox News, The Telegraph, Bloomberg, BBC News
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