Rene-Thierry Magon de la Villehuchet was found dead today with his wrists slashed at his desk in his office on Madison Avenue, Manhattan. De la Villehuchet was the fund manager of an investment fund that lost $1.4 billion when it was reported by numerous media sources that Bernard Madoff’s hedge fund was nothing more than a Ponzi scheme. We reported the allegations against Madoff here.

A box cutter and a bottle of sleeping pills were found on the floor next to his body.

De la Villehuchet’s investment fund contained money from numerous prominent European clients. De la Villehuchet, in turn, invested some of that money in the hedge fund that was created by Madoff, in the hopes of giving his clients a high rate of return. Madoff’s fund is now virtually valueless after revelations both in the press and in criminal court that it was allegedly nothing more than a Ponzi scheme in which early investors, including Madoff, took money from later investors.

Fund managers who invested in Madoff’s hedge fund have been severely criticized for not properly researching Madoff before investing their clients’ money. It is not known if de la Villehuchet was facing any charges or lawsuits for investing in Madoff’s fund. Reportedly, many investors who lost money in the Madoff scandal were considering filing lawsuits both against Madoff and the fund managers who they entrusted to manage their money.

De la Villehuchet was from one of France’s most powerful families. The AP is reporting that his fund was linked to many members of Europe’s aristocracy, including Prince Michel of Yugoslavia. De la Villehuchet was also the former chairman and chief executive of Credit Lyonnais Securities USA.

He lived in Westchester County with his wife.

Bernard Madoff, meanwhile, is facing securities fraud charges both in criminal court in New York and through the Securities and Exchange Commission. At one point, he was so well-respected and trusted in financial circles that numerous financial institutions and prominent businessmen invested their money (and their clients’ money) into his hedge fund and through his brokerage house. According to the below video, his brokerage house at one point accounted for as much as 10% of the stock traded in the United States. Unfortunately, his fall is taking a whole lot of innocent people and dreams down as well.

In the below video, you can see how well-respected and trusted he once was:

Bernard Madoff

How do you sleep at night Bernard Madoff?