Potential Newcastle investors withdraw due to Madoff fraud

The hopes of English Newcastle United being purchased by wealthy American investors have been dampened since hedge fund manager Bernard Madoff is under investigation for fraud in the amount of GBP 32 billion.

According to the Guardian, the Amercians suffered a loss of over USD 300 million as a result of the Madoff pyramid scam. The amount of the loss was to cover an official bid to takeover Newcastle United football club, at the lowered price owner Mike Ashley was now willing to accept. The official bid, which was to be submitted last month, was never made due to this unfortunate loss.

Madoff is being held in house arrest until investigations are concluded.