The trustee overseeing the liquidation of the estate of convicted swindler Bernie Madoff (r.) has sued 25 feeder funds and 19 individuals for wrongly enriching themselves from the multi-billion-dollar Ponzi scheme for which Madoff is serving a 150-year sentence in federal prison. Law Professor Tamar Frankel, a securities law authority and author of “Trust and Honesty: America’s Business Culture at a Crossroad,” says all of those feeders of money benefitted, like all money managers, from their services — but they allegedly had actual knowledge of what Madoff was doing.
“They should have checked. If they did not, they should repay the fees and compensate for damages caused by their negligence. This is not a claim on hindsight for unexpected damage — this is a claim for keeping their eyes tightly shut.”
Contact Tamar Frankel, 617-353-3773, firstname.lastname@example.org