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Police uncover 80m City Ponzi fraud with 600 victims falling prey to scam

CITY of London Police have uncovered an &pound;80m &ldquo;Ponzi&rdquo; scheme that has more than 600 victims, with some now said to be bankrupt, homeless or suicidal as a result.<br /><br />The City police held a meeting for the victims last week at its Wood Street headquarters, after many refused to believe their investments in the scheme were likely to be lost.<br /><br />The police are now hunting for the cash, after arresting two men from Virginia Water, Surrey, and another from Knightsbridge last week. The money may be held in offshore financial centres including Dubai. <br /><br />Earlier this week police seized an &pound;800,000 sports car collection, thought to have been accrued with some of the cash, which included a Lamborghini and two Ferraris.<br /><br />This comes as David Friehling, the long-standing auditor of US &ldquo;Ponzi&rdquo; fraudster Bernard Madoff, was said to be planning to make a plea bargain with authorities. Friehling pleaded not guilty to charges he helped run the fraud last Friday but is now likely to switch his plea in return for a less harsh sentence.