Many more mini-Madoffs?

That’s what we’ve been predicting and here’s someone else who agrees.

Get ready for investigators to uncover dozens of more possible Bernard Madoff style frauds. Politco and Morningstar Inc surveyed 1,684 hedge funds that have disclosed their quarterly results for the past 5 years. That’s twenty quarters of results. It seems that 34 of those funds have never reported a down quarter. 

That kind of unwavering stability of results was a key red flag that the Madoff investment scheme was crooked. So the odds are that at least some of these funds reporting unbelmished quarterly records have been cooking the books. According to Politico, seven of the firms with unblemished results are connected to Madoff. That means there are 27 firms with results suggestive of completely independent scams.

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