A recent article in the NY Times features the role of Fiserv (FISV) as a nexus point for the Madoff, Heath, and Pearlman scandals. It seems that each of the Ponzi artists told their investors to establish their IRA accounts under Fiserv's custodianship.
Is this just a coincidence, or did the crooks all know, somehow, that this particular custodian could be relied on to overlook such discrepancies as, hmmm, no stocks in their custody? Or, worse, were one or more employees of the company actively colluding with the scammers?
Fiserv sold off its IRA-service unit last year, to focus more on the high-tech end of its business, but may still be liable for breach of fiduciary duty.
But here's the real irony: the same company has recently been dubbed a leader in fraud prevention. Is this the result of its newly-found "smart" focus? Or all the more reason to suspect collusion?
Disclosure: no position