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US FEDERAL LAW SUITS FILED ON MADOFF RELATIVES > 
FROM THE -
JOURNALS of Monte Friesner ~ Tuesday November 30, 2010 >
Financial Crime Consultant for WANTED SA >
Ponzi Schemer's Relatives are also High-Risk ****
The filing of a number of new Federal lawsuits against six relatives of convicted mega-Ponzi schemer Bernard Madoff iliustrates an important point; expect the Receiver, or other court-appointed officials, to eventually go after everyone remotely related to Ponzi schemers, not just insiders. So what is a compliance officer to do when news breaks regarding the next major Ponzi Fraudster's arrest, and you remember (or learn) that the individual or individuals are somehow connected to bank clients.
Whilst we do not suggest that you engage a firm to create a family tree of the Ponzi schemer, should there be be ties and connections, whether familial or geographical, in the area of your client base, it might be prudent to scan the names of your account holders for Ponzi relatives, or business associates, and to do so long before accounts at your bank are frozen by a court. Call it efficient risk management. This is not profiling, but effective damage control, and you should immediately check your account name database when a Ponzi scheme is unmasked, for you may even be banking the fraudster himself.
You do not want to be named as the bank-of-choice for anyone affiliated with a major Ponzi scheme; it affects client confidence in the bank, and could result in massive client flight to your competitors. Therefore, it is humbly suggested that, when a Ponzi scheme (or for that matter, any major financial crime in your immediate area) is exposed by law enforcement, that you immediately check for customers who could be either involved, or are named, or who could be relatives that enjoyed the fruits of the fraud.
- * Readers' note: The World-Check Archives contain complete coverage of the Madoff scandal, and also articles that provide valuable tips for recognising Ponzi scheme activity in progress.
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WANTED SA Thanks Mr. Kenneth Rijock of World Check and all the Parties, Law Enforcement and Securities forces who have contributed to this article and their sincere opinions and statements.
WANTED SA states that the facts and opinions stated in this article are those of the author and not those of WANTED SA. We do not warrant the accuracy of any of the facts and opinions stated in this article nor do we endorse them or accept any form of responsibility for the articles.
