Thursday, 29 January 2015
Last updated 16 min ago
Feb 2 2009 | 1:57am ET
A Bernard Madoff feeder hedge fund shop has sued its auditors, alleging they failed realize that something was afoot at what authorities are calling a $50 billion Ponzi scheme.
Darien, Conn.-based Maxam Capital Management, which lost about $280 million invested with Bernard L. Madoff Investment Securities, has accused Goldstein Golub Kessler and McGladrey & Pullen of negligence. The lawsuit, filed Friday in Connecticut Superior Court, alleges that the auditors offered “unqualified” opinions for the Maxam Absolute Return Fund’s financial statements, saying they represented the fund’s true financial position.
“Maxam intends to purse its legal rights to ensure that proper restitution is made to its investors,” Jonathan Cogan, a lawyer for Maxam, said in a statement.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…