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U.S., U.K. and Austrian prosecutors are investigating a former Austrian fund manager they believe was paid more than $40 million in kickbacks to funnel billions of dollars of investments to Bernard Madoff.

Prosecutors from all three investigations believe Mr. Madoff paid kickbacks to Sonja Kohn while she was chairwoman of Austria's Bank Medici AG via separate companies she controlled, according to affidavits detailing the investigations and hundreds of documents collected by Austrian prosecutors that were reviewed by The Wall Street Journal.

In exchange for the kickbacks, prosecutors allege, Ms. Kohn turned three Bank Medici funds into "feeder funds" that supplied Mr. Madoff with an estimated $3.5 billion from Christian investors.