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Money managers under the microscope

Lugano: Billions in Madoff losses


Lugano: Madoff hotspotThe sleepy town of Lugano, in the Italian-speaking Ticino region of Switzerland, has emerged as a key collection centre for Madoff-related funds.

Between $2 billion and $5billion lost in the Madoff fraud was gathered in the town–population 52,000–much of the money coming through the Italian cities of Milan, Turin and Rome, according to private banking and investment management sources who requested anonymity.

With losses of that size, one might imagine the Lugano courts are overflowing with investor-led legal actions, but civil and the criminal directors of public prosecutions said last week they are yet to receive any complaints related to the Madoff affair.

The above mentioned sources say representatives from some of the largest funds hit by Bernard Madoff’s reported $65 billion fraud regularly did the rounds in Lugano, located very close to Switzerland’s border with Italy.