Madoff Feeder Fund Lawsuit Dismissed

Apr 3 2014 | 10:32am ET

A New York State judge has thrown out a lawsuit against a Bernard Madoff feeder fund filed by an investor.

New York Supreme Court Justice Richard Lowe ruled that Jay Wexler’s claims were covered by a class-action lawsuit that Tremont has already settled. “Wexler’s derivative claims were represented in the federal action by other limited partners” of the fund, in which Wexler lost more than $400,000.

In addition, Wexler “fails to explain how one or more alleged red flags made it so obvious that Madoff was running a Ponzi scheme that defendants must have known about the scheme and wanted to further it.”

Tremont’s funds were among the largest of Madoff’s investors, with some $3 billion lost in the fraud.

Lowe also tossed Wexler’s claims against Tremont’s parent companies and two former executives. He said he would rule later on the investor’s lawsuits against Madoff’s service providers, JPMorgan Chase, KPMG, Bank of New York Mellon and accountant Paul Konigsberg.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

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

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.