Sonja Kohn: The Woman Who Helped Madoff Swindle the World

Sonja Kohn is an Austrian banker who is being accused of playing an integral role in Bernard Madoff’s massive Ponzi scheme, funneling billions from European investors to Madoff’s fraudulent operation and earning millions in fees and kickbacks from him. Kohn has been sued by the trustee of Madoff estate for $19.6 billion but her whereabouts remain unknown; nonetheless she denies all wrongdoing while alleging to have been taken advantage of by Madoff himself.

Sonja Kohn: Background

Sonja Kohn

Kohn was born to Jewish refugees fleeing the Holocaust in Vienna. She later moved with her husband Erwin Kohn to Milan, launching an import-export business. Later she worked as a stockbroker for Merrill Lynch in New York City where she met Madoff; upon her return to Vienna in 1994 she founded Bank Medici and earned the reputation as “Austria’s woman on Wall Street”. Additionally she served as consultant of the Vienna Stock Exchange and board member of Finlombardia bank.

Madoff connection

Sonja Kohn became one of Madoff’s most effective representatives to the private European wealth and offshore hedge fund worlds through Bank Medici and other entities, such as Herald Fund and Primeo Funds. Additionally, she introduced him to Mario Benbassat from Genevalor Benbassat & Cie who in turn established five European feeder funds that invested nearly $2 billion with Madoff; Kohn received fees totalling 4.6 million euros from Thema International Fund that year and at least $62 million as kickbacks over 23 years from Madoff for finding investors.

Aftermath of Sonja Kohn

Kohn attempted to paint herself and her investors as victims of Madoff’s massive Ponzi scheme when he was arrested in December 2008. She wrote in an e-mail to Bloomberg News that they were all deceived by “Madoff fraud”, yet denied participating in any activities “that destroyed lives, life savings and companies”. But in December 2010, Irving Picard filed a civil racketeering suit against Kohn and her associates seeking $19.6 billion in damages; alleging she orchestrated an elaborate 23-year conspiracy that was central in financing Madoff’s grand Ponzi scheme; Picard called Kohn his “criminal soul mate.”

Disappearance

Since Madoff was arrested, Kohn has gone into hiding from various adversaries, such as Russian oligarchs whose money she sent Madoff. Reports indicate she may be found hiding out in Bnei Brak, Israel where Haredi Jews provide refuge from legal authorities as well as anyone looking for her justice; others speculate she could have fled Switzerland, Italy or even America altogether – her current location and status remain unknown.