October 13, 2010 · 0 Comments
By Jeff McCord of The Investor Advocate
October 19, 2010
As reported October 8 on Law.Com, a second federal judge has OK’d investor fraud lawsuits brought against those investment managers who directed their clients’ moneys into Bernie Madoff’s Ponzi scheme and profited handsomely in fee income from Madoff in the process. In the most recent ruling in an investor case against such so-called “Madoff feeder funds,” on October 5, Manhattan federal district judge Leonard Sand said private investor claims can be brought against Beacon Associates investment fund and Ivy Asset Management, now owned by Bank of New York Mellon Corp.
In a separate case against another Madoff feeder fund, in August, Manhattan federal district court Judge Victor Marrero ruled that a class action brought by investors who lost billions in funds managed by Fairfield Greenwich can proceed.
Evidence has been uncovered in a separate investigation by the New York Attorney General that executives of the Ivy feeder fund actually suspected Madoff was running a Ponzi scheme, yet continued putting client money into it and accepting generous fees from Madoff.
Similar allegations have been brought by investors against Beacon and Fairfield Greenwich.
Although Bernie Madoff’s victims have the satisfaction of seeing him put in jail for the rest of his life (see video clip below), most will only be able to recover their losses through private investor lawsuits against those who enabled Madoff’s fraud to succeed for so many years. These include the feeder funds who cynically marketed Madoff to a wide range of individual and institutional investors.
By Jeff McCord