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Bank Medici Ag Essay

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Founded by Sonja Khon in 1994, Bank Medici AG was a bank located in Vienna, Austria. It became incorporated as a bank in 2003. The bank’s president and majority stakeholder is the founder, Sonja Khon. Its major institutional shareholder is Austria’s biggest banking group, Bank Austria Creditansalt. Khon owned three quarters of the stakes (75%) and Bank Austria owned the remainder.
Prosecutors from the United States, United Kingdom and Austria investigate Ms. Sonja Khon on her involvement business with Bernad L. Madoff. He is a former NASDAQ chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC (BLMIS). For about 23 years, it is alleged that Khon, operating mostly from overseas, was the go-to link for bankers, hedge-fund managers and wealthy people outside the United States who wanted to invest indirectly, through feeder funds, in Madoff’s financial services.
Khon’s relationship with the financier commenced in 1985 to help grow the Vienna based bank, channeling investor money worth more than $ 9.1 billion into his company. Mardof operated a one of a kind Ponzi …show more content…

This is according to affidavits collected by Austrian prosecutors that The Wall Street Journal reviewed. Madoff in return was supplied with an estimated $3.5 billion from European investors after Khon turned three Medici funds into feeder funds. The net worth of Madoff’s Ponzi scheme was $65 billion, and the investigations show how Madoff may have convinced fund managers oversees to root for investors for Madoff. In his lawsuit against Bank Medici AG and its founder, Sonja Khon, Irving Picard referred to Khon as Madoff’s criminal soul mate. According to Picard, the scheme made Khon and her family rich, including Bank Austria and UniCredit

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