Fraudster could have exposure in the UK

The Serious Fraud Office (SFO) has opened an investigation into Bernard Madoff’s UK business.

The inquiry was set up after Grant Thornton, provisional liquidators of Madoff’s UK business, reported possible wrongdoings in the UK.

Former investors and employees are believed to be providing the SFO with information. According to The Times, two directors of Madoff’s London trading business have been caught up in the alleged $50bn (£34bn) pyramid scam.

An SFO spokesman confirmed that a case had been opened against Madoff in London, but would not verify who had come forward with information about the disgraced Wall Street financier.

Richard Alderman, director of the SFO, said: “This is a good example of the SFO’s new, faster, approach to tackling fraud. The public want us to take early action and this is what we are doing.

“We will work closely with other law enforcement agencies to discover the truth behind the collapse of these huge financial structures. And we again ask for help from ex-employers and others.”

Lloyd’s expects the main fall-out from Madoff’s alleged scam to come from professional indemnity claims against banks and asset managers.

As Insurance Times went to press, Madoff was due to appear in court in New York for allegedly mailing valuable assets to friends and family while under house arrest.