Jan. 18 (Bloomberg) — Brazilian investors lost “tens of millions” of dollars through banks that put money into Bernard Madoff’s funds, Folha de S. Paulo reported, citing David Rosemberg, a lawyer at Orlando, Florida-based Broad and Cassel.
At least 15 individuals and financial advisers in Sao Paulo, Rio de Janeiro, and other Brazilian cities contacted Rosemberg about their losses, the newspaper said. The clients invested in some Safra banks, Banco Santander SA, UBS AG and Fairfield Greenwich Group and didn’t know their money had been directed to Madoff’s funds, the newspaper said.
“Brazil, out of all the Latin American countries, was probably hardest hit,” Rosemberg said today when contacted by Bloomberg News. “Banks were putting money into Madoff without understanding Madoff’s business. There was an element of peer pressure, everyone else was doing it.”
Fairfield Greenwich Group, Walter Noel’s hedge-fund that had $7.5 billion with Madoff, was sued last week for at least the third time by investors in the U.S. over claims it failed to protect their assets. Thomas Mulligan, a New-York based spokesman for the firm, said last week that Fairfield “intends to cooperate with all regulatory procedures.”
Fairfield Greenwich spokeswoman Bianca Haegler declined to comment, Folha said.
Cat got their tongue? That may not be all.