Hundreds of people are thought to have invested with Mr Madoff, among them international banks, hedge funds and wealthy private investors – who are all trying to find out the cost of the alleged fraud.

Spanish newspapers said the leading bank Santander had invested with Mr Madoff.

Bramdean Alternatives, a UK-based asset management company run by Nicola Horlick, saw its share value drop by over 35% after it revealed that nearly 10% of its holding was exposed to the New York broker.

One hedge fund, Fairfield Greenwich Group, said its clients had invested $7.5bn with the firm.

…

Brad Friedman, a lawyer for some of the investors, said: “There are people who were very, very well off a few days ago who are now virtually destitute.

“They have nothing left but their apartments or homes – which they are going to have to sell to get money to live on,” he told the New York Times.

(yeah, fat chance in this market)

Read the sordid tale here.