Watch CBSN Live

U.S.: Madoff Used London Office In Fraud

(AP Photo/Louis Lanzano)
Often thought of as a quiet outpost of his lucrative trading firm, Bernard Madoff's London office was used to propel his multibillion-dollar Ponzi scheme, federal authorities allege in recent court filings, the Wall Street Journal reported Thursday.

Madoff used his London office to launder money for his clients, authorities claim.

According to authorities, Madoff "carried out the alleged fraud by transferring client money from the investment-advisory business in New York to London and then back to the U.S. to support the U.S. trading operation of Bernard L. Madoff Investment Securities LLC, and also for his personal benefit and for family members and associates," the newspaper explains.

As far back as 2002, authorities say Madoff "caused more than $250 million" of clients' money to be funneled through the London operation, which began in 1983 and didn't show much activity until the late 1990s, according to the newspaper.