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Second Circuit Upholds Dismissal of Claims Against Auditor in Madoff Ponzi Scheme

The Second Circuit has upheld the district court's decision in Stephenson v. PricewaterhouseCoopers LLC, 768 F. Supp. 2d 562 (S.D.N.Y. 2011), dismissing an investor's claims for professional malpractice and fraud against the auditor of a Madoff feeder fund, Greenwich Sentry. Stephenson v...

Russell Wasendorf Gets 50-Year Sentence for Fraud Related to Peregrine Bankruptcy

CEDAR FALLS, Iowa- (Mealey's) A federal judge in Iowa on Jan. 31 sentenced Russell R. Wasendorf, the former CEO of bankrupt Peregrine Financial Group Inc., to 50 years in federal prison for stealing more than $215.53 million in customer funds while he operated his commodities futures business ( USA...

Second Circuit Bars Trustee’s Claims Against Banks in Madoff Ponzi Scheme Case

by Kathy Bazoian Phelps The Madoff trustee and Madoff victims hoped to hold the banks liable for alleged wrongdoing. The banks hoped to escape liability on the theory that the Madoff trustee, standing in the shoes of Madoff’s company, was a wrongdoer that should be barred from suing the banks...