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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA newly released list of clients of disgraced investment manager Bernard L. Madoff does not include any of Indianapolis’ most prominent businesspeople. But it does identify as clients the Hudson Institute, the prominent think tank that relocated from Indianapolis to Washington, D.C., in 2004, as well as north-side resident Howard J. Glass.
The 162-page list includes clients identified in Madoff’s records, as well as people, trusts, not-for-profits and others who have contacted the court-appointed bankruptcy trustee and identified themselves as clients.
Madoff late last year told the FBI that he oversaw a $50 billion Ponzi scheme-an investment fraud that ensnared many prominent Americans, from talk show host Larry King to Democratic Sen. Frank Lautenberg of New Jersey.
But in the Indianapolis area, no high-profile Hoosiers have yet emerged as Madoff investors. Glass, the sole Indianapolis resident on the list, told IBJ this morning: “I am not interested in an interview. There is nothing in it for me.”
The details of Hudson Institute’s involvement with Madoff are not clear. A spokeswoman in Washington did not respond to IBJ’s inquiry before deadline. Chief Financial Office Debbie Hoopes, who works out of a Greenwood office, did not return a call.
John Mutz, who stepped down as a Hudson trustee when it left Indianapolis, said he had never heard of Madoff back when he was on the board and did not know if the institute was a Madoff client back then.
The scarcity of Indianapolis-area clients on the list does not mean local residents have been spared from losses stemming from the Ponzi scheme. IBJ reported last year that clients of Carmel-based KSM Capital Advisors invested in funds that invested in other funds that put money with Madoff.
The 162-page list includes only clients investing directly with Madoff. But the KSM clients are just as exposed to losses. KSM has said that fewer than 50 of its clients had Madoff exposure. Together, they invested about $15 million.
Names of the KSM clients have not yet become public.
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