The central bank of a country that was in the process of being released from an alliance of former Soviet Union countries was given an offer to raise hundreds of millions of dollars in financing against its promissory notes. The move was part of a financing plan that was supposed not just to raise financing but also to generate an exceptional return for the bank, for depositing part of the sum in a specialized Program. The central bank was assisted by a chief advisor form England.
Following repeat examination of various program that were offered, over several months, including with the participation of a leading bank in Switzerland in discounting of notes, there was concern that these programs were part of a pyramid scheme.
The advisor from England, who was also appointed as the delivery person of the notes from the central bank to Switzerland, was led, in contravention of his position, to be released from the holding of the bank’s promissory notes in trust, and these were put back into the banking system, which returned them to the central bank.
It was later found that this intervention prevented the central bank from becoming one of the victims of Bernie Madoff, the U.S. investment manager behind the largest Ponzi scheme in history.