Katz Sapper’s embarrassment

Yesterdayâ??s disclosure by KSM Capital Advisors that its clients might
be out $15 million from the alleged Madoff scandal probably wonâ??t be the last local fallout. At minimum, it has been
a
stressful and embarrassing time for a respected Indianapolis firm.

Some very good minds from around the world thought so much of Bernard Madoffâ??s returns that they actually begged him to
invest
their money. Others thought they smelled a rat when his returns didnâ??t contract with market downturns, and quietly stayed
away.

KSM didnâ??t directly invest with Madoff. It placed the money with another firm, which sent the money to a third firm that
in
turn invested with Madoff.

To what extent do you blame KSM, or its parent, Katz Sapper & Miller, for the nightmare? Any lessons to learn?