SCANDALS: One of the Largest Frauds

AFTER Founder Bernard Cornfeld finished manipulating and misusing the Geneva-based IOS mutual fund complex in 1970, it was a wonder that there were any assets left to drain off. In fact, enough cash and American stocks remained in IOS-managed funds to provide the makings of an international scandal juicier than any that Cornfeld produced. Last week the Securities and Exchange Commission accused Cornfeld's successor, Robert L. Vesco, and a group of Vesco's associates of "looting" no less than $224 million from four IOS funds so far this year. The SEC brought a...

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