Foundation Sues SEC Over Madoff Negligence


U.S. Sued Over SEC’s ‘Negligence’ in Madoff’s Fraud

The U.S. was sued by a charity and two individual investors for alleged negligence by the Securities and Exchange Commission in failing to uncover Bernard Madoff’s fraud scheme.

The Michael and Ruth Slade Foundation and Alan and Blayne Goldman filed separate complaints today in New York federal court.

… Through its negligence, “the SEC caused Madoff’s scheme to continue, perpetrate and expand, eventually resulting in billions in losses by investors, and directly caused plaintiff to lose $2.5 million,” the Slade Foundation wrote in its complaint. The Goldmans said they lost $2.4 million.