Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Katz Sapper's embarrassment

December 17, 2008
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?
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