Colo. Co. Says SEC To Blame For $19M In Madoff Losses

Law360, New York (December 9, 2010, 7:44 PM EST) -- A Colorado fine arts company that says it lost more than $19 million in Bernie Madoff's Ponzi scheme has sued the federal government, claiming the money was lost because of "gross negligence" on the part of the U.S. Securities and Exchange Commission.

Aspen Fine Arts Co.'s suit, lodged in the U.S. District Court for the Southern District of New York, says the agency, having received multiple complaints about Madoff from investors, "failed to follow its own policies and procedures" as it investigated.

"The SEC's execution was...
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