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Losses Hid With False Documents

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The Associated Press

Published: December 17, 2008

Investigators pouring over Bernard Madoff's books said they have discovered the money manager falsified documents to hide massive losses to investors in a fraud case that could take months to unravel, an official helping to oversee the firm's liquidation said.

Stephen Harbeck, chief executive of Securities Investor Protection Corp., said investigators are sorting through different sets of books.

"It is obvious that the documents that customers see don't reflect the reality of what the brokerage firm had," said Harbeck, whose organization is helping oversee the liquidation. "We've only scratched the surface."

Madoff, 70, was arrested Thursday in what the Securities and Exchange Commission is calling one of the biggest Ponzi schemes. Investors of all sizes may record losses of more than $50 billion.

SIPC, which was created by Congress and funded by the securities industry, can give customers up to $500,000 if it is determined their money was stolen.

It is not known how many customers Madoff's firm had. SIPC has about $1.6 billion to make payouts, which means that amount could quickly be depleted.

The FBI has set up a hot line for investors who believe they may have been victimized by Madoff. The number is (212) 384-2359.

Customers wanting to submit a claim should go to www.SIPC.org.

RAYMOND JAMES DENIES CONNECTION
Raymond James Financial Inc. said it had no history of marketing Madoff Investment Securities and no known exposure to the alleged Ponzi scheme that may have cost investors billions of dollars.

The St. Petersburg-based financial services company responded in a news release to a CNBC report on Friday that the brokerage had marketed funds in which Madoff was involved.

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