US Fire Says Family's $10M Madoff Loss Not Insured

Law360, New York (April 17, 2012, 8:16 PM EDT) -- Affiliates of a family investment office can't claim roughly $10 million lost in Bernard L. Madoff's Ponzi scheme under its U.S. Fire Insurance Co. policy because securities brokers like Madoff were excluded, the insurer's attorney told a New York state judge during a bench trial Tuesday.

The dispute involves two investment vehicles formed for Jacobson Family Investments Inc. and managed by Nine Thirty Capital Management LLC, who allege that their losses in Madoff's fraud should be covered by their insurance policy with U.S. Fire.

The problem,...
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