BUSINESS

Madoff Scandal Could Take Six Months To Unravel

01/16/2009 05:12 am ET | Updated May 25, 2011

Bernard Madoff's financial records were "utterly unreliable" and will take six months to sort out, said Stephen Harbeck, president of the Securities Investor Protection Corp.

"There are some assets, but I have no idea what the relationships of the assets available are to the claims against them," Harbeck said on Bloomberg Television. "The records are utterly unreliable on this case."

His comments came as Bank Medici AG of Austria became the latest lender to reveal a loss from Madoff's alleged $50 billion fraud. Two funds at the Viennese bank, 75 percent owned by Chairman Sonja Kohn, invested $2.1 billion entirely in Madoff's firm, the bank said today. It joined institutions and wealthy individuals from Tokyo to Paris. New York's Yeshiva University said it lost $110 million, mostly through hedge funds controlled by trustee J. Ezra Merkin.

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