http://www.cimoney.com.ky/section/me...t.aspx?id=2308

2008-12-22
CIMA Statement Regarding the Madoff Case and the Funds Industry


(Grand Cayman, Monday, 22 December 2008) The Cayman Islands Monetary Authority (CIMA) has been following the developments relating to charges of massive investment fraud brought in the USA against investment broker and former Nasdaq Stock Exchange Chairman Bernard Madoff. Prosecutors allege that the fraud could run as high as US$50 billion.

CIMA has done a check of its records and database and has found no evidence so far that Mr Bernard Madoff or any Madoff company is providing direct services to any Cayman Islands-regulated fund. An initial check of the Companies Registry shows no Madoff-related entity incorporated in the Cayman Islands.

However, given that investors in Mr Madoff's investment funds include banking and other institutions across Europe, the UK and the USA, CIMA anticipates that there could be a number of Cayman-regulated funds as well as other institutions that have made investments into the Madoff funds/schemes and which, therefore, could be impacted.

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Meanwhile, the hunt for Madoff money overseas continues. The Cayman Islands Monetary Authority posted a statement indicating, “An initial check of the Companies Registry shows no Madoff-related entity incorporated in the Cayman Islands.”

But there are registered Cayman entities matching the names of feeder funds that are now being sued by their investors, such as: Ascot Fund Limited, Ariel Fund Limited and Maxam Absolute Return Fund.

However, CBS News has learned the main Madoff-related vehicles for Fairfield Greenwich Group, a major Madoff feeder fund, are registered in the British Virgin Islands.