NIAP Helps Madoff Victims File Tort Claims Against IRS, SEC

Nov 17 2010 | 9:39am ET

A group formed to help the victims of fraudster Bernie Madoff says it will help his investors initiate legal actions against the Securities and Exchange Commission and the Internal Revenue Service for failing to “identify and halt” Madoff’s Ponzi scheme.

The Network for Investor Action and Protection (NIAP) has informed Madoff victims they have until December 11 to file the claims to start the lawsuit process.

“The SEC and IRS, through negligent actions and inactions, allowed the Bernard L. Madoff Investment Securities Ponzi scheme to occur, continue and flourish,” says NIAP President Ron Stein. “The result was an unregulated scheme that spiraled out of control, costing billions of dollars and wiping out the savings of thousands of individuals who believed they were investing in good faith.”
 
To sue a government body like the SEC or the IRS, a Notice of Claim form must be filed with the agency within two years of the date of the loss – December 11, 2010 is the second anniversary of the disclosure of Madoff’s $65 billion fraud. The agencies will then have a six-month period to accept or reject the claim.

Stein claims the “negligence and failure” of the SEC has been “well documented.” Particularly, he said, was in the report by the SEC’s Office of Inspector General. As for the IRS, Stein says that by approving  Bernard L. Madoff Investment Securities as a non-bank custodian, “the IRS violated relevant regulations wholesale adding legitimacy to the Ponzi scheme that has wreaked havoc on thousands of lives.”


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.