Gimme my Money Back Now!
A New York woman who says she lost most of her savings investing with accused swindler Bernard Madoff is seeking $1.7 million in damages from the Securities and Exchange Commission for failing to detect his fraud for more than a decade.
Phyllis Molchatsky, 61, of upstate New City, has filed an administrative claim against the SEC, accusing the regulator of "negligent conduct." The 13-page document says she invested $2 million in 2001 with American Masters Broad Market Fund LP, a hedge fund associated with Madoff.Before his Dec. 11 arrest, Madoff confessed to employees that he was running a "giant Ponzi scheme" that may have lost as much as $50 billion.
SEC chairman Christopher Cox has said the agency failed to act on "credible and specific allegations" of wrongdoing by Madoff dating back to at least 1999."It's unprecedented for the chairman of the Securities and Exchange Commission to go public and admit multiple failures," said Howard Elisofon, an attorney who is representing Molchatsky. "On that basis, we think they should step up to the plate." .....
....Elisofon said he's interviewing other Madoff investors who are considering taking action against the SEC.
Federal law restricts individuals from suing the government. Elisofon said he will argue that while the government can't be sued for creating an agency to protect investors, it can face litigation when it's negligent in carrying out that mission.
SEC spokesman John Nester declined to comment.....
Walter "Feeder Fund" Noel Was Aware
That The SEC Investigated His Buddy Madoff
In Fact, The SEC Had Cited Walter "Feeder Fund" Noel For Not Fully Disclosing That His Investors Funds Were Being Sent To And Managed By Bernard Madoff.
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