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updated: 12/17/2008 8:13:20 AM
Indiana Firm Outlines Investments With Madoff
An Indianapolis-based investment firm is working to recover its clients' money that has been tied up with New York money manager Bernard Madoff. The U.S. Securities and Exchange Commission accuses Madoff of operating a fraudulent investment operation. KSM Capital Advisors says it has some affected clients and is "outraged by the alleged wrongdoing." KSM Capital's parent, Katz Sapper & Miller, also has funds invested with Madoff and could lose less than 1 percent of their book value.
Source: Inside INdiana Business
Press Release
Indianapolis – Since learning of the arrest of Bernard Madoff and securities fraud charges brought against Bernard L. Madoff Investment Securities LLC, on Dec. 11, 2008, Indianapolis-based KSM Capital Advisors has been working closely with its affected clients and with Future Select Portfolio Management, Inc. (FSPM), the fund which invested KSM Capital Advisors’ clients’ funds in Madoff’s strategy.
Peter Reist, CPA, one of the Managing Directors with KSM Capital Advisors, said, “We have some affected clients, and we, like the thousands of other investors in Madoff’s funds, are outraged by the alleged wrongdoing. The amounts invested by clients are a portion of their diversified portfolios and represent less than 4% of KSM Capital Advisors’ assets under advisement. We deeply regret any loss to clients through this fraud and are working closely with those affected.” Additionally, Katz Sapper & Miller has funds invested in the Madoff strategy with a total potential loss of less than 1% of its book value.
KSM Capital Advisors is taking the steps necessary to assist in efforts to recover clients’ funds. Reist said, “While we do not have definitive information regarding the potential recovery to our investors, we are working with FSPM to ensure it is pursuing appropriate actions to protect our clients’ interests and to secure as much recovery as possible. We are also providing full support and advice in maximizing potential tax benefits.”
KSM Capital Advisors has included FSPM’s funds as an investment option since 2005, and did so only after conducting appropriate due diligence on FSPM and its president, Ron Ward. Mr. Ward advised that FSPM has invested through feeder funds, principally Tremont Capital Management, into Madoff’s investment program for over a decade.
KSM Capital Advisors is a financial advisory firm combining tax and financial expertise with a wide range of independent investment resources to provide integrated wealth management services to our clients.
Source: KSM Capital Advisors
