Two Articles Published Raising Red Flags about Bernard Madoff's Profits

Frank Casey meets Michael Ocrant, an investigative reporter who covers hedge funds, at a conference and suggests he look into "the biggest hedge fund in the world" -- Madoff Securities.

Ocrant's resulting article,"Madoff Tops Charts, Skeptics Ask How," questions Madoff's consistent returns and why other money managers can't duplicate them. Ocrant interviews Madoff for the article and tells FRONTLINE that Madoff was "cool as a cucumber" and spent several hours answering questions.

Madoff, who believes that he deserves 'some credibility as a trader for 40 years,' says: 'The strategy is the strategy and the returns are the returns.' He suggests that those who believe there is something more to it and are seeking an answer beyond that are wasting their time."”

— Michael Ocrant

Madoff's investors rave about his performance -- even though they don't understand how he does it. "Even knowledgeable people can't really tell you what he's doing," one very satisfied investor told Barron's. "People who have all the trade confirms and statements still can't define it very well. The only thing I know is that he's often in cash" when volatility levels get extreme. This investor declined to be quoted by name. Why? Because Madoff politely requests that his investors not reveal that he runs their money.