N.Y. Appeals Court Finds No Duty To Cover Firm's 'Fictitious Madoff Gains'

N.Y. Appeals Court Finds No Duty To Cover Firm's 'Fictitious Madoff Gains'

NEW YORK - Because the purported value of an investment management company's assets was fictitiously reported by investment advisor Bernard Madoff, who was later convicted of fraud, the First Department New York Supreme Court Appellate Division on Dec. 11 held that the firm's insurers had no duty to cover the "loss" of those funds that never existed (Jacobson Family Investments Inc., et al. v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 7960-7961 Index 601325/10, 7961, N.Y. Sup., App. Div., 1st Dept.; 2012 N.Y. App. Div. LEXIS 8408; 2012 NY Slip Op 8467).

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