2nd Circ. Affirms Toss Of Madoff Scheme Coverage Suit

Law360, New York (June 8, 2011, 3:41 PM EDT) -- The Second Circuit affirmed Wednesday the dismissal of a New York investment firm's suit seeking $1.2 million from Travelers Casualty and Surety Co. of America over alleged losses to an employee benefits plan stemming from Bernard Madoff's massive fraud.

Travelers provided the Employee Retirement Income Security Act compliance bond for the plan sponsored by the Schupak Group Inc., but the Second Circuit affirmed that the bond did not insure the plan against Madoff's $65 billion scheme.

Schupak sued Travelers in December 2009, claiming Madoff had acted...
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