Page 1 of Ten Beach Road

Prologue

MARCH 2009

WALL STREET WEEKLY

Malcolm Dyer Joins Bernie Madoff

on Most Hated List

NEW YORK—Federal investigators raided the offices of Malcolm Dyer, head of Synergy Investments, in New York City this morning. Dyer is suspected of conducting an elaborate Ponzi scheme, similar to that employed by Mr. Madoff, and of bilking some three hundred clients of more than three hundred million dollars. Investors, who believed their money was being put in bank-secured CDs with double-digit yields, were, in fact, funding Mr. Dyer’s lavish lifestyle, which included a private jet, a seventy-eightfoot motor yacht, and homes in Westchester, Palm Springs, Palm Beach, Florida’s Gulf Coast, and the Caribbean island where the alleged securitizing bank was allegedly located.

For at least five years, investors did receive the promised returns, which were apparently paid out of successive investors’ deposits, rather than the nonexistent CDs. When clients, faced with a faltering economy and plummeting stock prices, requested their principal back, the scheme was uncovered.

Although investigators have seized records and frozen all of Mr. Dyer’s known accounts and assets, the majority of the missing money is assumed to be offshore. Dyer’s whereabouts are unknown.

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