The SEC has accused a Madoff linked firm of funneling billions in investor funds.
Wired PR News – Law News Distribution – A brokerage firm and investment adviser have been accused of participation in the controversial $50 billion ponzi scheme of Bernard Madoff. As reported by the Associated Press (AP), the Securities and Exchange Commission (SEC) has filed suit against New York based Cohmad Securities Corp. and some of its executives, as well as Beverly Hills philanthropist Stanley Chais for funneling billions of investor funds as part of a fraud scheme perpetrated by ex-financier Madoff.
SEC Enforcement Director Robert Khuzami is quoted by the AP as releasing the statement, “Madoff cultivated an air of exclusivity by pretending that he was too successful to trouble himself with marketing to new investors… In fact, he needed a constant inflow of funds to sustain his fraud, and used his secret control of Cohmad to obtain them.”
An attorney for Trustee Irving Picard is further quoted in the report as stating, “Although Madoff stated he was operating alone, our investigation has yielded significant evidence that, in fact, a variety of other people helped Madoff prey on innocent victims.”
Photo Credit: U.S. Department of Justice