Bermuda partner Scott Watson-Brown and PwC (USA) partner Linda McGowan met with Madoff at his offices in New York in December 2008 and wrote in their report regarding fraud, "No instances or cases reported with clients or internally. Risk of fraud gets close scrutiny from Madoff (personally) as the operation is his business."

Their visit was to conduct due diligence for at least nine feeder funds audited by the PwC group that, as of December 2008, had approximately $17 billion invested with Madoff, reports the Gazette.

So, let me get this right... there's $17 billion on the table, the Auditors ask the guy in charge if there is any fraud, he says nope, they write their report and collect a huge audit fee.

In any real-world jurisdiction, Mr Watson-Brown would be fired and would never work in the industry again.  In Bermuda, I'm betting he gets a fat bonus.