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{{Infobox company
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'''Aurelia Finance SA''' was a [[private bank]] and fund-management company in [[Geneva]], Switzerland that was set up as a [[feeder fund]] to [[Bernie Madoff]]'s illegal [[Ponzi scheme]].<ref name="bloomberg1">{{cite news|last=Mulier |first=Thomas |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHKbfI2zTbJk |title=Aurelia Finance Invested Client Money in Madoff, Le Temps Says |publisher=Bloomberg |date=30 December 2008 |access-date=21 February 2013}}</ref><ref name="reuters1">{{cite news|url=https://www.reuters.com/article/madoff-aurelia-idUSLB20666220091112 |title=Aurelia man charged with money laundering-sources |publisher=Reuters |date= 12 November 2009|access-date=21 February 2013 |first=Martin |last=de Sa'Pinto}}</ref>
'''Aurelia Finance SA''' was a [[private bank]] and fund-management company in [[Geneva]], Switzerland that was set up as a [[feeder fund]] to [[Bernie Madoff]]'s illegal [[Ponzi scheme]].<ref name="bloomberg1">{{cite news|last=Mulier |first=Thomas |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHKbfI2zTbJk |title=Aurelia Finance Invested Client Money in Madoff, Le Temps Says |publisher=Bloomberg |date=30 December 2008 |access-date=21 February 2013}}</ref><ref name="reuters1">{{cite news|url=https://www.reuters.com/article/madoff-aurelia-idUSLB20666220091112 |title=Aurelia man charged with money laundering-sources |work=Reuters|date= 12 November 2009|access-date=21 February 2013 |first=Martin |last=de Sa'Pinto}}</ref>


Aurelia managed 1.7 billion Swiss francs of clients’ money, and advised clients to invest in the Hermes World Fund, a Madoff feeder fund which was listed in Dublin in January 2004, as part of a “conservative” portfolio.<ref name="bloomberg1"/><ref>{{cite news|url=https://www.reuters.com/article/madoff-aurelia-idUSLK349520090423 |title=Swiss Madoff investors await Aurelia ruling |publisher=Reuters |date=23 April 2009 |access-date=21 February 2013 |first=Martin |last=de Sa'Pinto}}</ref>
Aurelia managed 1.7 billion Swiss francs of clients' money, and advised clients to invest in the Hermes World Fund, a Madoff feeder fund which was listed in Dublin in January 2004, as part of a "conservative" portfolio.<ref name="bloomberg1"/><ref>{{cite news|url=https://www.reuters.com/article/madoff-aurelia-idUSLK349520090423 |title=Swiss Madoff investors await Aurelia ruling |work=Reuters|date=23 April 2009 |access-date=21 February 2013 |first=Martin |last=de Sa'Pinto}}</ref>


==Madoff==
==Madoff==
It placed assets of its 800 million Swiss francs ($758 million) Hermes World Fund in investments with [[Bernard Madoff]].<ref name="bloomberg1"/><ref>{{cite news|url=https://www.reuters.com/article/ubp-madoff-idUKLC9683720090312 |title=UBP to partially reimburse Madoff victims |publisher=Reuters |date=12 March 2009 |access-date=21 February 2013 |first=Martin |last=de Sa'Pinto}}</ref>
It placed assets of its 800 million Swiss francs ($758 million) Hermes World Fund in investments with [[Bernard Madoff]].<ref name="bloomberg1"/><ref>{{cite news|url=https://www.reuters.com/article/ubp-madoff-idUKLC9683720090312 |title=UBP to partially reimburse Madoff victims |work=Reuters|date=12 March 2009 |access-date=21 February 2013 |first=Martin |last=de Sa'Pinto}}</ref>


[[Irving Picard]], the trustee charged with recovering money for Madoff fraud victims, alleged that in September 2008 when a JPMorgan Structured Investments Distribution Marketing division employee disclosed JPMorgan plans to redeem its money, he was threatened by employees of Aurelia Finance.<ref name="autogenerated1">{{cite news|last=Murphy |first=Megan |url=http://www.ft.com/intl/cms/s/0/14982e98-2fd5-11e0-91f8-00144feabdc0.html#axzz2LUoJVTOP |title=JPMorgan under fire over Madoff role |publisher=FT |date=3 February 2011 |access-date=21 February 2013}}</ref><ref>{{cite news|author=Courtney Comstock |url=https://www.cnbc.com/id/42610852/JPMorgan_Did_A_CostBenefit_to_See_If_It_Was_Worth_Keeping_a_Ponzi_Scheme_As_a_Client |archive-url=https://archive.today/20130407230406/http://www.cnbc.com/id/42610852/JPMorgan_Did_A_CostBenefit_to_See_If_It_Was_Worth_Keeping_a_Ponzi_Scheme_As_a_Client |url-status=dead |archive-date=7 April 2013 |title=JPMorgan Did A Cost-Benefit to See If It Was Worth Keeping a Ponzi Scheme As a Client |publisher=Cnbc |date=15 April 2011 |access-date=21 February 2013 }}</ref> Picard asserted in a complaint: "The Aurelia Finance representatives repeatedly opposed [JP Morgan's] plan. At two points in the conversation, the Aurelia Finance representatives made threats ... referring to 'Colombian friends' who could 'cause havoc' and telling [the JPMorgan employee] 'we know where to find you’.”<ref name="autogenerated1"/> JPMorgan reported the threats to the UK’s [[Serious Organised Crime Agency]] in October 2008 by filing a Suspicious Activity Report, concerned that “Colombian drug money” was involved in the Madoff firm.<ref name="autogenerated1"/><ref>{{cite news|last=Schecter |first=Anna |url=https://abcnews.go.com/Blotter/jp-morgan-suspected-madoff-months-prior-arrest/story?id=12294368 |title=JP Morgan Suspected Madoff Months Prior to Arrest |work=ABC News |date=2 December 2010 |access-date=21 February 2013}}</ref><ref>{{cite news|url=http://usatoday30.usatoday.com/money/industries/banking/2011-02-04-madoff-jpmorgan-chase_N.htm |title=Madoff trustee: JP Morgan execs were warned |publisher=usatoday.com |date= 4 February 2011|access-date=21 February 2013}}</ref>
[[Irving Picard]], the trustee charged with recovering money for Madoff fraud victims, alleged that in September 2008 when a JPMorgan Structured Investments Distribution Marketing division employee disclosed JPMorgan plans to redeem its money, he was threatened by employees of Aurelia Finance.<ref name="autogenerated1">{{cite news|last=Murphy |first=Megan |url=http://www.ft.com/intl/cms/s/0/14982e98-2fd5-11e0-91f8-00144feabdc0.html#axzz2LUoJVTOP |title=JPMorgan under fire over Madoff role |work=Financial Times|date=3 February 2011 |access-date=21 February 2013}}</ref><ref>{{cite news|author=Courtney Comstock |url=https://www.cnbc.com/2011/04/15/jpmorgan-did-a-costbenefit-to-see-if-it-was-worth-keeping-a-ponzi-scheme-as-a-client.html |archive-url=https://archive.today/20130407230406/http://www.cnbc.com/id/42610852/JPMorgan_Did_A_CostBenefit_to_See_If_It_Was_Worth_Keeping_a_Ponzi_Scheme_As_a_Client |url-status=live |archive-date=7 April 2013 |title=JPMorgan Did A Cost-Benefit to See If It Was Worth Keeping a Ponzi Scheme As a Client |publisher=Cnbc |date=15 April 2011 |access-date=21 February 2013 }}</ref> Picard asserted in a complaint: "The Aurelia Finance representatives repeatedly opposed [JP Morgan's] plan. At two points in the conversation, the Aurelia Finance representatives made threats ... referring to 'Colombian friends' who could 'cause havoc' and telling [the JPMorgan employee] 'we know where to find you'.”<ref name="autogenerated1"/> JPMorgan reported the threats to the UK's [[Serious Organised Crime Agency]] in October 2008 by filing a Suspicious Activity Report, concerned that "Colombian drug money" was involved in the Madoff firm.<ref name="autogenerated1"/><ref>{{cite news|last=Schecter |first=Anna |url=https://abcnews.go.com/Blotter/jp-morgan-suspected-madoff-months-prior-arrest/story?id=12294368 |title=JP Morgan Suspected Madoff Months Prior to Arrest |publisher=ABC News|location=United States|date=2 December 2010 |access-date=21 February 2013}}</ref><ref>{{cite news|url=http://usatoday30.usatoday.com/money/industries/banking/2011-02-04-madoff-jpmorgan-chase_N.htm |title=Madoff trustee: JP Morgan execs were warned |work=USA Today |date= 4 February 2011|access-date=21 February 2013}}</ref>


Aurelia lost an estimated $800 million of clients' money by investing in [[Bernard Madoff]]'s $65 billion [[Ponzi scheme]], uncovered in December 2008.<ref name="reuters1"/><ref>{{cite news|url=http://uk.reuters.com/article/uk-madoff-aurelia-sb-idUKTRE53N4BF20090424 |title=Swiss judge allows charges in Madoff losses case |publisher=Reuters |date=24 April 2009 |access-date=21 February 2013}}</ref>
Aurelia lost an estimated $800 million of clients' money by investing in [[Bernard Madoff]]'s $65 billion [[Ponzi scheme]], uncovered in December 2008.<ref name="reuters1"/><ref>{{cite news|url=http://uk.reuters.com/article/uk-madoff-aurelia-sb-idUKTRE53N4BF20090424 |archive-url=https://web.archive.org/web/20160127110833/http://uk.reuters.com/article/uk-madoff-aurelia-sb-idUKTRE53N4BF20090424 |url-status=dead |archive-date=27 January 2016 |title=Swiss judge allows charges in Madoff losses case |work=Reuters|date=24 April 2009 |access-date=21 February 2013}}</ref>


==Post-Madoff==
==Post-Madoff==
In April 2009, all five directors of Aurelia's board were charged by a Geneva magistrate with criminal mismanagement of client assets, and with enriching themselves on [[management fee]]s, finder fees, and [[commission (remuneration)|commission]]s paid for fictitious returns that were never verified.<ref name="reuters1"/>
In April 2009, all five directors of Aurelia's board were charged by a Geneva magistrate with criminal mismanagement of client assets, and with enriching themselves on [[management fee]]s, finder fees, and [[commission (remuneration)|commission]]s paid for fictitious returns that were never verified.<ref name="reuters1"/><ref>{{cite book|url=https://books.google.com/books?id=w95aAAAAYAAJ&q=%22Aurelia+Finance%22 |title=Bloomberg Markets |date=July 2009 |access-date=21 February 2013}}</ref> They all then resigned from the board.<ref name="reuters1"/><ref>{{cite news|last=Giles |first=Warren |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQFSA42CpZIA |title=Rothschild Difference With Madoff Becomes Geneva's Obsession |publisher=Bloomberg |date=7 May 2009 |access-date=21 February 2013}}</ref> Cattaneo and Stepczynski retained executive roles at the bank, however.<ref name="reuters1"/> The company had one sole director as of 4 June 2009, Gerhard Auer.<ref name="reuters1"/>
<ref>{{cite book|url=https://books.google.com/books?id=w95aAAAAYAAJ&q=%22Aurelia+Finance%22 |title=Bloomberg Markets |date=July 2009 |access-date=21 February 2013}}</ref> They all then resigned from the board.<ref name="reuters1"/><ref>{{cite news|last=Giles |first=Warren |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQFSA42CpZIA |title=Rothschild Difference With Madoff Becomes Geneva's Obsession |publisher=Bloomberg |date=7 May 2009 |access-date=21 February 2013}}</ref> Cattaneo and Stepczynski retained executive roles at the bank, however.<ref name="reuters1"/> The company had one sole director as of 4 June 2009, Gerhard Auer.<ref name="reuters1"/>


In November 2009, prosecutors leveled [[money laundering]] charges at Stepczynski after the bank he tried to use to transfer millions of francs out of Switzerland informed the authorities.<ref name="reuters1"/> A Geneva examining magistrate then froze the assets of all five former Aurelia directors.<ref name="reuters1"/>
In November 2009, prosecutors leveled [[money laundering]] charges at Stepczynski after the bank he tried to use to transfer millions of francs out of Switzerland informed the authorities.<ref name="reuters1"/> A Geneva examining magistrate then froze the assets of all five former Aurelia directors.<ref name="reuters1"/>


On September 4, 2015 the criminal complaints against the five directors were settled in Geneva.<ref name="reuters2">{{cite news|url=https://www.reuters.com/article/swiss-madoff-idUSL5N11A3MG20150904 |title=Geneva wealth managers pay defrauded investors to settle Madoff case |publisher=Reuters |date= 4 September 2015|access-date=22 December 2016 }}</ref>
On 4 September 2015 the criminal complaints against the five directors were settled in Geneva.<ref name="reuters2">{{cite news|url=https://www.reuters.com/article/swiss-madoff-idUSL5N11A3MG20150904 |title=Geneva wealth managers pay defrauded investors to settle Madoff case |work=Reuters|date= 4 September 2015|access-date=22 December 2016 }}</ref>


==See also==
==See also==
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==References==
==References==
{{Reflist|30em}}
{{Reflist}}


{{Madoff investment scandal}}
{{Madoff investment scandal}}

Latest revision as of 01:25, 11 November 2024

Aurelia Finance
Company typeprivate bank and fund-management company
Headquarters
Geneva
,
Switzerland
Servicesfeeder fund to Bernie Madoff

Aurelia Finance SA was a private bank and fund-management company in Geneva, Switzerland that was set up as a feeder fund to Bernie Madoff's illegal Ponzi scheme.[1][2]

Aurelia managed 1.7 billion Swiss francs of clients' money, and advised clients to invest in the Hermes World Fund, a Madoff feeder fund which was listed in Dublin in January 2004, as part of a "conservative" portfolio.[1][3]

Madoff

[edit]

It placed assets of its 800 million Swiss francs ($758 million) Hermes World Fund in investments with Bernard Madoff.[1][4]

Irving Picard, the trustee charged with recovering money for Madoff fraud victims, alleged that in September 2008 when a JPMorgan Structured Investments Distribution Marketing division employee disclosed JPMorgan plans to redeem its money, he was threatened by employees of Aurelia Finance.[5][6] Picard asserted in a complaint: "The Aurelia Finance representatives repeatedly opposed [JP Morgan's] plan. At two points in the conversation, the Aurelia Finance representatives made threats ... referring to 'Colombian friends' who could 'cause havoc' and telling [the JPMorgan employee] 'we know where to find you'.”[5] JPMorgan reported the threats to the UK's Serious Organised Crime Agency in October 2008 by filing a Suspicious Activity Report, concerned that "Colombian drug money" was involved in the Madoff firm.[5][7][8]

Aurelia lost an estimated $800 million of clients' money by investing in Bernard Madoff's $65 billion Ponzi scheme, uncovered in December 2008.[2][9]

Post-Madoff

[edit]

In April 2009, all five directors of Aurelia's board were charged by a Geneva magistrate with criminal mismanagement of client assets, and with enriching themselves on management fees, finder fees, and commissions paid for fictitious returns that were never verified.[2][10] They all then resigned from the board.[2][11] Cattaneo and Stepczynski retained executive roles at the bank, however.[2] The company had one sole director as of 4 June 2009, Gerhard Auer.[2]

In November 2009, prosecutors leveled money laundering charges at Stepczynski after the bank he tried to use to transfer millions of francs out of Switzerland informed the authorities.[2] A Geneva examining magistrate then froze the assets of all five former Aurelia directors.[2]

On 4 September 2015 the criminal complaints against the five directors were settled in Geneva.[12]

See also

[edit]

References

[edit]
  1. ^ a b c Mulier, Thomas (30 December 2008). "Aurelia Finance Invested Client Money in Madoff, Le Temps Says". Bloomberg. Retrieved 21 February 2013.
  2. ^ a b c d e f g h de Sa'Pinto, Martin (12 November 2009). "Aurelia man charged with money laundering-sources". Reuters. Retrieved 21 February 2013.
  3. ^ de Sa'Pinto, Martin (23 April 2009). "Swiss Madoff investors await Aurelia ruling". Reuters. Retrieved 21 February 2013.
  4. ^ de Sa'Pinto, Martin (12 March 2009). "UBP to partially reimburse Madoff victims". Reuters. Retrieved 21 February 2013.
  5. ^ a b c Murphy, Megan (3 February 2011). "JPMorgan under fire over Madoff role". Financial Times. Retrieved 21 February 2013.
  6. ^ Courtney Comstock (15 April 2011). "JPMorgan Did A Cost-Benefit to See If It Was Worth Keeping a Ponzi Scheme As a Client". Cnbc. Archived from the original on 7 April 2013. Retrieved 21 February 2013.
  7. ^ Schecter, Anna (2 December 2010). "JP Morgan Suspected Madoff Months Prior to Arrest". United States: ABC News. Retrieved 21 February 2013.
  8. ^ "Madoff trustee: JP Morgan execs were warned". USA Today. 4 February 2011. Retrieved 21 February 2013.
  9. ^ "Swiss judge allows charges in Madoff losses case". Reuters. 24 April 2009. Archived from the original on 27 January 2016. Retrieved 21 February 2013.
  10. ^ Bloomberg Markets. July 2009. Retrieved 21 February 2013.
  11. ^ Giles, Warren (7 May 2009). "Rothschild Difference With Madoff Becomes Geneva's Obsession". Bloomberg. Retrieved 21 February 2013.
  12. ^ "Geneva wealth managers pay defrauded investors to settle Madoff case". Reuters. 4 September 2015. Retrieved 22 December 2016.
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