The many victims of the epic Ponzi scheme run by Bernard Madoff (Bernard Madoff news) have grown a bit frustrated as it appears that the feeder funds that kept Madoff chock full of fresh assets may not ever be held accountable. While we've seen Madoff employees be charged, the top feeder funds have so far escaped that fate.

But the state of Connecticut appears to be taking a close look at Westport National Bank and a Connecticut pension consultant to see if they aided and abetted Madoff. The state's Department of Banking will decide soon whether to bring some charges against them. The issue is whether the consultant Robert Silverman steered clients toward pooled investments for which Westport National Bank served as the nominal custodian; they funds were to be managed exclusively by Madoff.

An action by the state banking department will hardly be enough to slake the many victims. But it does show there is still some action on-going. You do have to wonder if any feeder funds will be charged by federal prosecutors.   

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