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Madoff Scheme 'Too Good To Be True'

Erin Arvedlund was among the first to report on the many suspicions about financier Bernie Madoff, in 2001. Her article for Barron's investigated Madoff's fund's "stunning double-digit returns." But her article, and a few other investigations, failed to sound an alarm.

Once Madoff's fraud came to light in 2008, Arvedlund writes, "his name was now equated with a crime bigger than Enron, bigger than WorldCom, bigger even than those of Charles Ponzi himself, the man whose name would grace the type of scheme that Madoff had taken to a whole new level." In her book, Too Good To Be True, Arvedlund reports on how Madoff managed to fool investors, and the SEC, for so long.

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Corrected: September 24, 2009 at 12:00 AM EDT
In our interview, Erin Arvedlund said that many so-called feeder funds that invested with Bernie Madoff did not reveal that Madoff was the manager, so many retirees never knew they were exposed. This was not true of one company she mentioned. Fairfield Greenwich Group, believing Madoff to be a selling point, did list him as the portfolio manager in many of their funds.