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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR