Wealthy Latin Americans appear to be among the big losers in the $50 billion Ponzi scheme orchestrated by financier Bernard Madoff, although many in the region are reluctant to step forward due to the private nature of Latin American fortunes, worries about security, and concerns about tipping off local tax authorities.
Some were brought into the Madoff investment fund, which the New York-based financier confessed earlier this month was a Ponzi scheme, through Banco Santander, the Spanish bank, which has major operations through the region.
Other investors appear to have been introduced to the scheme through their friendship with Andrés Piedrahita, a socially prominent, Colombian-born banker living in Madrid and London. Mr. Piedrahita, is a son-in-law of Walter Noel, founder of the Fairfield Greenwich Group, which may have lost $7.5 billion it had invested with Mr. Madoff. In a statement released in Spain, Fairfield Greenwich said it was a victim of fraud and was considering legal action to protect its clients. Mr. Piedrahita couldn't be reached for comment.
Earlier this month Banco Santander, which operates in Puerto Rico and eight Latin American countries from Mexico to Argentina, admitted losing more than €2.3 billion ($3.22 billion) it had invested in the Madoff fund.
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