DOL Sues Investment Cos. For Ignoring Madoff Fraud

Law360, New York (October 21, 2010, 7:01 PM EDT) -- The U.S. Department of Labor filed a lawsuit on Thursday against four investment firms, including Ivy Asset Management LLC and Beacon Associates Management Corp., for alleged negligence in investing hundreds of millions of dollars in pension funds with convicted swindler Bernard L. Madoff.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges the companies and their principals violated the Employee Retirement Income Security Act by steering investments toward Madoff without heeding “red flags” surrounding his operation.

"These defendants chose...
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