This makes intuitive sense considering the $32 billion size of the Libyan SWF. Billionaire Ponzi schemers need access to real money occasionally, and Middle Eastern SWFs are habitual targets. Appropriately, Madoff and Stanford now reside in the same North Carolina prison, though the story would be exponentially more rewarding had either scammer actually been successful in conning a few billion from the opiate-addled Libyan dictator.

The story originates from the following diplomatic cable:

Wikileaks Cable - U.K. Guardian

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Source - Huff Po

Even despotic leaders, it turns out, can make sound investment decisions.

Libyan leader Moamar Gadhafi turned down a chance to invest with Bernie Madoff and accused ponzi schemer Allen Stanford, according to a new diplomatic cable released by WikiLeaks. The U.K.'s Telegraph has the full cable, dated January 28, 2010.

In the cable, the head of the Libyan sovereign wealth fund, Mohamed Layas, claimed to control $32 billion in liquid assets, most of which was deposited at U.S. banks. Layas, according to the cable, was miffed at Libyan funds that were "mismanaged" by Lehman Brothers, the failed investment bank.

From the cable:

"Layas denied press reports that the LIA had invested USD 100 million with the infamous Allen Stanford. He said that he had personally written a letter to the "Financial Times" disputing the information, explaining that Stanford had approached the LIA in the middle of his crisis, offering a 7-8% share in his investment scheme, but Layas had refused. Layas also mentioned having been previously approached by Bernard Madoff about an investment opportunity, "but we did not accept." On the contrary, LIA's recent purchase of the Canadian Verenex oil company -- after much controversy over the manner in which it was purchased and share price -- was considered by Layas a "good deal." LIA plans to operate Verenex jointly with the Libyan Investment and Development Corporation (LIDCO).

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