Madoff Investors Slam SEC, Sue Agency For Negligence

Law360, New York (January 26, 2011, 3:53 PM EST) -- Six investors in Bernard L. Madoff’s defunct investment firm have sued the U.S. Securities and Exchange Commission, claiming the agency was grossly negligent in failing to root out Madoff’s $65 billion Ponzi scheme before it unraveled.

The fact that Madoff was ultimately responsible for the fraud does not absolve the SEC of responsibility, because the fraud was only made possible by the commission’s negligence, the investors said in a complaint filed Tuesday in the U.S. District Court for the Southern District of New York.

“Had the...
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Case Information

Case Title

Applestein et al v. The United States of America et al


Case Number

1:11-cv-00521

Court

New York Southern

Nature of Suit

Other Statutory Actions

Judge

Laura Taylor Swain

Date Filed

January 24, 2011

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