Sources say that most of his and his clients wealth were gained through issuing subprime mortgages to unqualified borrowers and then tranching the mortgages into CDOs and circulating the CDOs among US pension funds including GM, GE, IBM and California's State pension fund.
Some of the wealth was also gotten through investments in Vegas housing sub divisions and Miami condo projects at the height of the real estate bubble.
Finally, sources say that the wealth from Madeoff's scam has been fully transfered to Israel and that "most if not all of the clients have been made aware" that their money is available to them in Israel and that it was felt that this was a necessary measure in protecting certain high level clients in the face of a collapse of the USA.
A European bank executive has said early this morning that the Banks involved in Madeoff's fund were exposed through loads and leveraging and that these loans will be repaid in full from Israel.
All of the charities involved have Israeli offices, so they also are of an understanding that their money is now available there.
Sources say that Madeoff has a base in Israel and that he will offer all clients his services there as a continuum to his services in New York.
Speculation has it that he is advising transfer of client's funds into physical gold holdings in coded safety deposit boxes. This advise jives with the notion that the money needed to be taken out of the US on fear of collapsing US dollar and seizure of funds by IRS and courts for frauds committed during the sub prime bubble.
The Swiss bank client leak has caused these banks to no longer be viable avenues for asset concealment.
Madeoff's clients are not just in the US. He has moved funds to Israel for clients in Russia, France, England and Swiss in the scheme in which he is involved.
Some insiders are saying the amount involved may be closer to $100 Billion.