At a time like this, given everything that is going on, institutions have to be extra careful when it comes to due diligence of hedge or any kind of fund. Bernard Madoff's fund certainly wasn't what it appeared to be. 

This applies to criminals as well. The fund you're targeting just might be a front for a FBI sting, as was the case with a New York fund that inked a deal with four would-be criminals, according to FINalternatives. The con men thought they were going to get a big investment, which they intended to pocket, to finance a pipeline through Western Russia. It was really an FBI front. The men were arrested and recently convicted on Long Island. 

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