France’s financial markets regulator fined an investment company and one of its officials a total of 200,000 euros ($258,000) for encouraging wealthy clients to invest in funds linked to Ponzi scheme operator Bernard Madoff.
The Autorite des Marches Financiers faulted them for selling a financial product not licensed for distribution in France, according to the decision on the AMF website. The company was also rebuked for inadequate risk controls.
The regulator declined to name the firm, which was asked to pay 180,000 euros, because it was bought by another company in 2011 that wasn’t at fault. The firm has sought to compensate its clients, the AMF said. Lawyers listed in the decision as representing them didn’t immediately return calls for comment.
Madoff was arrested almost four years ago and is serving a 150-year prison sentence after pleading guilty to fraud. The AMF estimated soon after his arrest that French investors may have lost as much as 500 million euros.
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