Thursday, October 15, 2009

Madoff Victims Sue SEC For Missing Ponzi Scheme

Two victims in the Bernard L. Madoff Investment Securities Ponzi scheme case have sued the US Securities & Exchange Commission for failing to spot the fraud. The lawsuit was brought by Phyllis Molchatsky, a single retiree who lost $1.7 million and Steven Schneider, a doctor who lost more than $750,000. The lawsuit, which seeks the return of some $2.4 million, argues that its "sovereign immunity" should be waived if government employees are negligent. Many legal observers say the suit has little chance of succeeding, however.

Read the story here.

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