Bernard Madoff Secret Phone Conversation with Fairfield Greenwich Officers on How to Deal with SEC Questions

After learning SEC investigators are about to contact Fairfield Greenwich's due diligence officer, a phone conversation (PDF) takes place between Madoff, FG General Counsel Mark McKeefrey and FG Chief Risk Officer Amit Vijayvergiya.

Madoff opens the conversation saying, "Obviously, first of all, this conversation never took place."

He goes on to coach them on how to handle SEC investigators. "You don't have to be exact on this stuff because … no one pays attention to these types of things. … It's basically, you know, more casual. I mean, the idea is that we're not the one … that's operating the fund."

Later he says, "Your position is to say, listen, Madoff has been in business for 45 years, you know, he executes, you know, a huge percentage of the industry's orders, he's a well-known broker. You know, we make the assumption that he's doing everything properly."

So -- I'm not telling you to conceal anything. I'm telling you, you know, that there are things that you don't -- one of the problems we've had in the past is people go out and they -- they, you know, even -- I'm talking about like with you where guys write things in a document or say things which is not really -- which is not a hundred percent the case, and I'll get into that in a little while when I go through your notes.”

— Bernard Madoff