Numerous institutions and individuals who had tried to due diligence on Madoff, inevitably came to the same conclusion. Some of these were kept internally, some brought to the SEC’s attention and some were made public in the press as early as 2001.
Goldman Sachs did their due diligence, according to the Telegraph “one former Goldman partner said: “I remember the guys came back baffled. Madoff refused to let them do any due diligence on the funds and when they asked about the firm’s investment strategy they couldn’t understand it. Goldman not only black-listed Madoff in the asset management division but banned the brokering side from trading with the firm too.”
