Bramdean Alternatives Limited, a London-based investment fund, publicly criticized American financial regulators after revelations that its client Bernard Madoff had allegedly run a massive Ponzi scheme for years, possibly decades, without detection.
Madoff, a 70-year-old Wall Street veteran, was arrested Thursday. Prosecutors alleged he confessed to losing at least $50 billion through his firm, Bernard L. Madoff Investment Securities LLC.
Bramdean had placed roughly £21 million with Madoff's company, about 9.5 percent of its total portfolio. Chief executive Nicola Horlick said investors had viewed Madoff's strategy as a reliable source of returns, with no apparent warning signs.
Reports linked property developer Vincent Tchenguiz, one of Britain's wealthiest individuals, to a £40 million investment placed through Bramdean. British pension funds and insurance companies were also said to have had exposure to Madoff's operations.
Royal Bank of Scotland acknowledged some connection to the alleged fraudster's firm but declined to elaborate. HSBC would not confirm or deny any relationship.
Historical summary. TurkishPress restated this wire report, first published in December 2008, in its own words.