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Madoff-Related Derivative Suit Survives Dismissal Motion in New York Court

In a March 12, 2010 order in a Madoff-related derivative suit, the New York (Nassau County) Supreme Court, applying New York law, substantially denied defendants' motion to dismiss, holding among other things that demand was excused. As far as I am aware, this is the first Madoff-related derivative...

Discovering the Madoff Scheme by 1997-1998

The saga of Ponzi scheme king Bernard Madoff continues with the filing of a new action by New York Attorney General Andrew Cuomo against an investment adviser who is alleged to have had information of the fraud by the late 1990s. The complaint suggests that millions of dollars in investor losses...

Utah May Get More Serious About Affinity Fraud

Utah has had more than it's share of affinity fraud cases over the years. Authorities say that in the past year alone, more than 4,000 Utahns have lost over $1.5 billion due to fraud. In many cases, the fraudsters engage in what is known as "affinity fraud" which refers to any type...

A Digression for Bernie M.

Convicted swindler Bernie Madoff has relevance to the small and midcap worlds because this is where he lived mostly - in the penny stock world of small cap stocks. He was Chairman of the Nasdaq in its early years long before Microsoft was a household name. Apparently the narcissism never stops as...

Is Madoff a Sociopath?

The New York magazine interview with Bernie Madoff has finally been published. Steve Fishman spoke with Madoff on the phone (collect calls from Madoff's prison) for several hours. And so, sitting alone with his therapist, in the prison khakis he irons himself, he seeks reassurance. "Everybody...

Book Review: No One Would Listen (Harry Markopolos on Bernie Madoff)

You can't really criticize Harry Markopolos. He was right. He had spotted something wrong with Bernie Madoff years before the biggest Ponzi scheme collapsed. Unlike many others, Markopolos contacted the Securities and Exchange Commission about his suspicions. They ignored him. Markopolos went...

SEC Disciplines Eight Employees Over Failure to Detect Madoff Fraud

The Securities and Exchange Commission disclosed that it had disciplined eight employees in connection with their failure to detect the massive Ponzi scheme orchestrated by Bernard Madoff. The employees received various forms of punishment over the past year that was made public by a Washington...

Duane Morris Alert: Narrow Interpretation of "Customer" Under SIPA Is Affirmed by the Second Circuit

The Second Circuit's affirmation of the narrow interpretation of customer under SIPA is likely to have a broad impact on the remaining Madoff cases before Judge Rakoff in the Southern District of New York, as well as the various SIPA cases currently working their way through courts across the...

Court Tosses Madoff Investors' Lawsuit Against SEC

Despite the 'regrettable inaction' by the Securities and Exchange Commission ("SEC") in failing to detect Bernard Madoff's historic $65 billion Ponzi scheme, a federal appeals court ruled that those victimized by Madoff's fraud could not hold the SEC accountable for negligence...