Relatives of New Jersey Sen. Frank Lautenberg are pursuing a novel approach to recover more than $7 million they say they lost as a result of Bernard Madoff’s alleged $50 billion Ponzi scheme.
They’re suing his younger brother.
Two of Lautenberg’s children and his charitable foundation filed suit against Peter B. Madoff, 63, the firm’s senior managing partner and chief compliance officer, saying that he either failed to spot “obvious, material red flags” of fraud, or covered them up.
The 17 “flags” they cite include the fact that no one was allowed in the 17th floor of the firm’s offices, known as “the cage,” and that the firm’s trading statements showed a history of buying securities at or near their daily lows, and selling them at or near their daily highs, timing that the complaint says was “virtually impossible to achieve in the absence of deceit or manipulation.”
Peter Madoff, like his brother, was also a stakeholder in Cohmad Securities, a major feeder firm to Bernard Madoff Investment Securities with offices in Boston and Palm Beach, FL.
“There were many obvious material red flags evidencing the giant Ponzi scheme at BMIS and other alerts of fraudulent activity at BMIS that were recklessly ignored and/or concealed and/or not disclosed and/or consciously disregarded by Peter Madoff,” according to the complaint.
Read on.
1 comment:
This might sound strange but Madoff knows alot of powerfull people who where in on the scam, let's see if he falls on the sword for the GOP and company. I still can't figure out how Madoff and Stanford, two of the biggest criminals of our time aren't waiting in jail. Both are living large and not a care in the World. What do they know that we don't.
Post a Comment