Kingate Global, which channelled its money to Bernard L Madoff Investment Securities to manage, highlighted the risk of giving custody of its assets to its investment manager – Madoff, although he was not named in the documents – and said they would not check the accuracy of statements he provided.
The alert is the most explicit in a series of warnings put into marketing material by “feeder” funds that put almost all their cash with Madoff, and highlights how he was allegedly able to pull off what could be the biggest financial fraud ever.
But few of the funds named Mr Madoff or his brokerage in their documents, while others went out of their way to claim they were monitoring the performance of their manager to ensure trades were executed as claimed.