Lawyer Seeks Class-Action Against SEC Over Madoff

Nov 15 2010 | 10:08am ET

A lawyer who represented Steven Cohen’s ex-wife in her explosive racketeering lawsuit against the SAC Capital Advisors founder is targeting an even bigger fish, by changing just one letter.

Gaytri Kachroo is suing the Securities and Exchange Commission over its handling—or lack of handling—of the Bernard Madoff Ponzi scheme, seeking class-action status on behalf of the arch-fraudster’s victims. The suit alleges that the SEC mishandled its many dealings with Madoff and ignored credible warnings, including from Kachroo client and lead whistleblower Harry Markopolos, who first sought to bring the regulator’s attention to Madoff a decade ago.

Kachroo told CNBC she is seeking billions from the government in what she called the first class-action lawsuit against the SEC.

The suit has been filed on behalf of investors who lost more than $500,000 in the Madoff scam or who indirectly invested in the Ponzi scheme. Neither of those two groups are beneficiaries of the efforts of court-appointed receiver Irving Picard. Kachroo is urging such victims to file complaints with the SEC by Dec. 10 to be included in the class.

“We’re leaving the lines of communication open with the SEC and the Obama administration to establish a Madoff task force to get the feeder funds, banks—those that channeled money to Madoff—to put money into a fund for investors,” she said.

Madoff pleaded guilty to defrauding investors of tens of billions of dollars in a decades-long, $65 billion Ponzi scheme. He is currently serving a 150-year sentence.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note