DIPASCALI NOW TARGET OF MADOFF PROBE

WSJ: FBI probe into Bernard Madoff targets key lieutenant

INVESTIGATORS probing the alleged fraud carried out by Bernard Madoff are looking at a key lieutenant at the firm and have issued a subpoena to the accountant who audited the firm's financial statements, seeking documents going back to 2000, people familiar with the matter said.

Madoff probe targets key lieutenant

Authorities are trying to determine who helped Mr Madoff carry out what they say appears to be at least a 30-year scheme that may have caused at least $US50 billion ($73 billion) in losses.

They are seeking information from the accounting firm that handled Mr Madoff's audits for decades and are examining the role of Frank DiPascali, who dealt with client accounts and worked at Mr Madoff's firm for more than 30 years, said a person familiar with the matter.

"If you wanted anything, a new account, money in, money out, you called Frank," said one Madoff investor. "Nothing moved in that office without him, operationally," this person said.

Marc Mukasey, a lawyer for Mr DiPascali, said: "Frank DiPascali would like to see investors get back whatever they can."

He declined to comment further.

After Mr Madoff's arrest on December 11, investigators from the Securities and Exchange Commission showed up at the Madoff firm's headquarters in Manhattan and questioned Mr DiPascali.

He "responded evasively" and his answers were "incomprehensible," according to an SEC memorandum reviewed by The Wall Street Journal and a person familiar with the matter. He told the SEC he didn't know who was responsible for the parts of the investment-advisory firm that cleared and settled trades, the SEC memo said.

• I WONDER IF THE MOB IS INVOLVED?
• 50 BILLION BUCKS IS AN AWFUL LOT OF MONEY - SO SKIMMKING OFF THE FUND WOULD HAVE MEANT THERE HAD TO HAVE BEEN BIG PROJECTS AND CONDUITS FOR IT... A VERY BIG LAUNDERING APPARATUS...
  
• HOW MUCH - IF ANY - WAS LAUNDERED AND WENT TO THE OBAMA CAMPAIGN????