London-based Madoff International, which had attempted last week to clarify that it was not a part of US asset management company Madoff Investments, ceased trading yesterday after holding discussions with the UK’s FSA yesterday. The Telegraph reports that Mr. Madoff owns 88 percent of Madoff International, “which takes no client money and works as a proprietary hedge fund for the family. Mr. Madoff’s two sons and other family members own the remaining 12pc. In 2007, it had £113m of mainly cash assets and made trading profits of £7.6m, netting £2.9m after tax.”
Stephen Raven, chief executive of Madoff International, said: “Our business activities are not involved in any way with the US asset management company.” He added that Mr. Madoff’s stake in the firm was a personal investment.
Madoff International, which is regulated by the FSA, ceased trading as the prospect of creditors seizing the money increased.
