Madoff investment scandal to enable the Irish regulator to uncover the fraud much earlier than late 2008 when he was finally arrested in New York. The scheme began to unravel in the fall of 2008, when the general market downturn accelerated. Madoff had previously come close to collapse in the second half of 2005 after Bayou Group, a group of hedge funds, was exposed as a Ponzi scheme that used a bogus accounting firm to misrepresent its performance. By November, investors had requested $105 million in redemptions, though Madoff's Chase account only had $13 million. Madoff only survived by moving money from his
Enterprise Investment Scheme and low Market liquidity meaning that it may be difficult or time consuming to sell or realise the investment. The tax reliefs available under EIS are intended to offer investors some incentive to counterweigh those risks. The EIS offers several different kinds of tax relief, available both to direct investors and investors through a managed EIS fund or portfolio service. They are conditional upon the company receiving investment being a qualifying company under the scheme. A brief summary of the tax benefits is as follows: The rules for qualifying are complicated; for example, the following are some of the qualifications