Madoff Buddy Blasts ‘Salacious’ Charges, Seeks Dismissal

Aug 25 2009 | 11:06am ET

A Bernard Madoff associate accused of funneling more than $1 billion to his friend’s $65 billion Ponzi has asked a pair of courts to lighten the judicial load on him.

Lawyers for Robert Jaffe have asked a Manhattan federal court to dismiss some of the Securities and Exchange Commission charges against him, as well as seeking the dismissal of part of the lawsuit filed against him by the court-appointed bankruptcy trustee for the Madoff businesses, Irving Picard. Jaffe, a former vice president of Cohmad Securities Corp., which was owned in part by Madoff and his borther, and Cohmad’s chairman and chief operating officer, Maurice and Marcia Cohn, have also asked that Picard’s lawsuit be removed from bankruptcy court and merged with the SEC case.

Jaffe’s lawyers have asked the court to junk four counts against him, including alleged violation of anti-fraud laws, improper securities transactions and breach of fiduciary duties.

Jaffe is accused of drumming up business for Bernard L. Madoff Investment Securities for some 20 years, although he denies having any knowledge of his friend’s fraud. His lawyers have complained that the SEC is “salaciously branding Jaffe a henchman of Bernie Madoff.”

But the SEC says the Cohns and Jaffe were paid some $98.6 million for their marketing services between 1996 and 2008, and that Madoff paid Jaffe directly, rather than through Cohmad.  Jaffe is not currently seeking the dismissal of some of the SEC charges, including ones related to compensation arrangements and bookkeeping.

Madoff pleaded guilty to fraud and other charges in March and is currently serving a 150-year sentence.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...