Reply #13: Probe finds evidence Madoff ran unregistered unit: report

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Probe finds evidence Madoff ran unregistered unit: report
By Simon Kennedy
Last update: 5:14 a.m. EST Dec. 15, 2008
http://www.marketwatch.com/news/story/Probe-finds-evidence-Madoff-ran/story.aspx?guid=%7B610B6D98-BFD3-48C1-A15C-50D1FFB7C4A8%7D

LONDON (MarketWatch) -- Federal investigators probing the alleged $50 billion ponzi scheme run by Bernard Madoff have found evidence he ran an unregistered money-management business alongside his firm's brokerage and investment-advisory subsidiaries, according to a Bloomberg report citing two people with knowledge of the investigation.

The report said clients of the unit may have included hedge funds and added that investigators are looking for indications of whether anyone else participated in the alleged fraud. It added the Securities Investor Protection Corp., which insures brokerages, plans to take over Madoff's operations as early as Monday.