Lieff Cabraser is investigating an alleged $50 billion fraud perpetrated by Bernard L. Madoff ("Madoff") and the asset management company that he ran, Bernard L. Madoff Investment Securities LLC ("BMIS").
Since its inception by Madoff in 1960, BMIS has conducted trading and market making activities for broker-dealers, banks and financial institutions. Over the past two decades, Madoff and BMIS have additionally conducted an investment advisory business providing investment services for wealthy clients, institutions, schools, and charities. Madoff's services were marketed as providing steady double-digit returns even in the most turbulent of markets, and by all appearances – at least according to the statements provided to advisory clients – lived up to their billing.
On December 11, 2008, the Securities and Exchange Commission ("SEC") charged Madoff and BMIS with securities fraud for a massive Ponzi scheme perpetrated on their advisory clients. BMIS claimed as recently as January 2008 that it had more than $17 billion in assets under its management, on behalf of dozens of advisory clients (including a number of family trusts, institutions and hedge funds).
According to the SEC's allegations and Madoff's reported statements, for years Madoff and BMIS paid "returns" out of funds sent to Madoff and BMIS by new investors, not from existing clients' actual returns on their investments. As of now, a court-appointed receiver is sifting through BMIS' records to determine what (if any) assets remain to satisfy investors.
The list of advisory clients who were affected by this massive fraud is growing every day. Apart from the numerous investors who entrusted their money directly with BMIS as a result of their personal relationships with Madoff, a growing number of investors are finding that investments they had made with various investment funds (including hedge funds) or "funds of funds" (private investment vehicles ostensibly designed to diversify across multiple funds) were in fact invested with Madoff, and are thus at risk.
Some of the more notable examples include Fairfield Greenwich Group, Tremont Capital Management, Ascot Partners, Maxam Capital Management, and the Optimal funds offered by Grupo Santander, though this list is not exhaustive. Investors in such instances may have potential causes of action against the fund managers or intermediaries who either recommended or placed their clients' investments in BMIS' care.
Contact Lieff Cabraser
Investors that have lost funds in the alleged Ponzi scheme perpetrated by Bernard L. Madoff through Bernard L. Madoff Investment Securities LLC, are welcome to contact Lieff Cabraser for a confidential review of their claims without charge or obligation.
Please click here to contact a Lieff Cabraser financial fraud attorney or call attorney Dan Chiplock toll-free in New York at 888-321-1510 or Sharon Lee in San Francisco at 800-541-7358.
Note to Employees and Participants in Retirement Plans That Invested In Madoff or BMIS Securities
The Employee Retirement Income Security Act of 1974 ("ERISA") imposes obligations on employers and others who control investment decisions of a pension plan. Employees or pension plan beneficiaries whose pension plans suffered losses due to the Madoff Ponzi scheme are welcome to contact Lieff Cabraser to learn more about their rights under ERISA without charge or obligation.
About Lieff Cabraser
Described by The American Lawyer as "one of the nation's premier plaintiffs' firms," Lieff Cabraser Heimann & Bernstein, LLP, is a 50-plus attorney, AV-rated law firm with offices in San Francisco, New York, and Nashville. Since 2003, The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last seven consecutive years.
Lieff Cabraser possesses an impressive track record of successfully representing high-wealth individuals and other investors in securities and financial fraud cases, including cases arising out of Ponzi and other fraudulent schemes. Learn more about our firm.
