Madoff Brokerage, Execs Settle

Nov 3 2010 | 2:55am ET

A brokerage firm part-owned by Bernard Madoff has settled charges stemming from his $65 billion Ponzi scheme.

Cohmad Securities and three executives settled Securities and Exchange Commission allegations that they failed to notify clients—who poured more than $1 billion into Madoff's scam—of "serious questions" about Madoff's operations by agreeing not to violate securities laws. None admitted or denied any wrongdoing.

The settlement with Cohmad, Chairman Maurice Cohn, chief operating officer Marcia Cohn and former vice president Robert Jaffe still requires court approval. The SEC said fines and restitution would be determined later.

"The Cohns are pleased that there is no allegation that they had sought to deceive anyone or knowingly participated in Bernard Madoff's Ponzi scheme," Clifford Thau, a lawyer for New York-based Cohmad and the Cohns, said. All four defendants have steadfastly denied any wrongdoing, and an earlier SEC lawsuit against them was dismissed in February.

Court-appointed receiver Irving Picard has also sued Cohmad, the Cohns and Jaffe, seeking to recoup some of the $98.4 million Cohmad allegedly received for marketing Madoff's services.


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.