Academic

The Multi-Faceted Madoff Saga -- Broker Litigation Intersects with Brother Peter Madoff

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

The civil litigation associated with Bernard Madoff's Ponzi scheme may go on for years -- both investors suing Madoff and investors suing their financial advisors who invested their monies in Madoff's investment funds without doing any due diligence at all.  And on top of this, investors want to know what about the other Madoff relatives?  The wife?  The sons?  The brother?

Today the NYT reports that one of the state law lawsuits brought against an advisor investing client funds in Madoff Investment Securities is against Peter Madoff, the brother of Bernie.  Brought in New York state by a Brooklyn Law School student, this suit alleges that Peter, the trustee of a trust settled for the plaintiff by his grandfather, invested the entire corpus of the trust in Madoff Investment Securities.  Well, that's gone now -- almost $500,000.  Talk about everything going bad -- law students everywhere are bemoaning the market, and one law student was able to say, "Well, at least I have my trust fund to fall back on. . . .hey, what's going on?"

So, in connection with this lawsuit, a NY state judge froze the assets of Peter Madoff, which seemed to surprise federal authorities whose investigation is continuing.

Full post as published by Conglomerate on March 26, 2009 (boomark / email).