Citi is sued for unsavory dealings with Bernard Madoff with the lawsuit seeking $425 million from the bank. According to the Madoff trustee Citigroup Inc tried to pass on its exposure to Bernard Madoff to other banks just months before his fraud was revealed. Citi saw obvious signs of fraud about Bernard L. Madoff investment Securities LLC as early as 2005 but decided to hold back on it, said Trustee Irving Picard in a court document.

In light of the latest media reports along with users’ complaints and website inaccessibility HYIP monitors decided to downgrade the online investment project Genius Funds to “Problem” status. Now on the websites of main monitors you can see the following picture: GoldPoll.com

 The Monday document prolonged the term for the eight people charged in a coast-to-coast U.S. hedge fund insider trading investigation to provide them with an opportunity for possible resolution of their criminal cases. The document involves eight people who were among 14 defendants charged with fraud on November 5 in the widening of an insider-trading scandal that initially shook hedge funds in mid-October with the arrest of Galleon Management LP's billionaire founder Raj Rajaratnam.

 The Securities and Exchange Commission reported that it had charged Detroit-area stock broker Frank Bluestein with fraud, alleging that he lured elderly investors into a $250 million Ponzi scheme after convincing many of them to refinance their home mortgages. The SEC alleges that Bluestein acted as the single largest salesperson in the Ponzi scheme operated by Edward May and his company, E-M Management Company LLC (E-M). The SEC previously filed charges against May and E-M in connection with the fraudulent scheme. 

Two men are charged in New York with an $80 million Ponzi scheme involving an automated teller machine business, federal authorities said Monday. Vance Moore II, 55, was arrested Friday and was scheduled for an initial court appearance Monday in North Carolina, where he resides. His New York attorney, Stuart London, did not immediately return a call for comment. 

The Securities and Exchange Commission announced fraud charges and an asset freeze against the perpetrators of a Charlotte, N.C.-based investment scheme that bilked $32.5 million from approximately 500 investors by falsely promising extraordinarily high returns.

Rep. Edolphus Towns, chairman of the House Oversight and Government Reform Committee, made a statement on Thursday that the US Congress will convene hearings on the failure of the Securities and Exchange Commission to follow clues that could have uncovered Bernard Madoff's $65 billion Ponzi scheme.

According to reports from CNBC a number of banks including two in the US are facing a new probe by the investigators who are trying to get to the truth in the alleged Allen Stanford Ponzi scheme. The regulators and prosecutors want to learn what the banks and regulators knew about massive deposits and withdrawals from Stanford over the years.

Joseph Cotchett, a San Francisco attorney who interviewed imprisoned Bernard Madoff in a federal prison this week, reported that he wants the introduction of some amendments to the lawsuit so as to include the names of several funds managers who injected investor money into Madoff's $65 billion Ponzi scheme.

Corey Ribotsky, Managing Member of NIR Group, a Roslyn, New York hedge-fund, is under the investigation of the US criminal authorities on charges of defrauding investors about their returns and the holdings of his various funds, the Wall Street Journal reported with the reference to the people familiar with the situation.

According to court document, the trustee in the Madoff case is in settlement negotiations with the Fairfield funds and the Kingate funds, which fed an estimated $3.8 billion into Bernard Madoff's epic swindle. The trustee sued Hedge funds in separate litigation as part of his efforts to recover money for investors bilked in the Wall Street's biggest investment fraud amounted to $65 billion over 20 years, according to U.S.

The sentencing of an orchestrator of the largest investment fraud in the US history Bernard Madoff was welcomed by almost all Americans including financial advisors who expressed their approval and at the same time their concern that the precedent will unlikely stop other from committing similar crime.

After hailing Bernard Madoff's 150-year prison sentence, some of his former investment clients intensified criticism of what they termed an equally tough adversary — the government systems charged with stopping financial scam artists and reimbursing its victims.About 20 ex-clients who together lost millions to Madoff said they have been victimized by inadequate oversight before the fraud collapsed in December and questionable decisions and slowness in the ensuing repayment process.

The Ontario Securities Commission charged a Toronto fund manager Weizhen Tang, who ran the Oversea Chinese Fund Ltd. Partnership, with fraud and accused him of running a C$40 million ($36 million) Ponzi scheme, reports Bloomberg. Tang who claimed to be the Chinese Donald Trump, faces 11 other charges, including unregistered trading in securities and illegal distribution of securities.

Now hedge funds who want to provide the proofs of their honesty to their customers can buy a risk assessment that will certify these financial institutions have low risk of fraud, reports the Reuters blog. For $15,000-$20,000 Protean Fraud Risk Appraisal will use its database of every such financial crime since 1997 to see if a fund shows any suspicious characteristics.