The feds are sniffing out Madoff’s offshore accounts but here’s the bit that might just warm Walt and Monica’s champagne this evening:
Investigators are especially interested in whether Madoff and some of his investors used funds based in offshore tax havens to evade American taxes, the paper said, citing a person who was briefed on the investigation and remained anonymous.
The paper said, according to the person, the likelihood of charities improperly allowing their donors to shift money offshore and foreign banks withholding American taxes on Madoff accounts were also being scrutinized.
Regulatory filings indicate the involvement of at least a dozen offshore entities with Madoff’s firm, the paper said.
According to the paper these include funds linked to the Fairfield Greenwich Group, which lost $7.4 billion of its investors’ money to Madoff, Tremont Group Holdings, which had $3.3 billion invested, and several Swiss banks.
On Wall Street, you can usually impoverish little old ladies without incurring much more than a severe frown and perhaps a wrist tap from the regulators but cheating the IRS? I wonder whether orange is Walt’s color?
Update: from the NYT
Fairfield Greenwich operates affiliates in offshore havens like the Cayman Islands. At another affiliate, in Bermuda, Amit Vijayvergiya, Fairfield Greenwich’s chief risk officer, managed flows into Sentry, its largest fund that was a main recipient of money that had been invested with Mr. Madoff. It also runs Fairfield Sentry in Ireland, one of Europe’s largest offshore havens, and a joint venture in Singapore, a leading Asian haven, called Lion Fairfield Capital Management.