Cuomo sues Bank of NY Mellon unit over Madoff

[IScreamSundays]

Source: Reuters

(Reuters) - New York Attorney General Andrew Cuomo sued a Bank of New York Mellon Corp (BK.N) unit and two of its former senior officers on Tuesday, claiming that they kept clients in the dark about problems they learned about involving Bernard Madoff's investment firm.

The lawsuit claims that Ivy Asset Management knew that Madoff was not investing client funds as advertised, yet did not disclose such concerns to clients in an effort to bring in millions of dollars of advisory fees.

Cuomo's lawsuit also targets former Ivy Chief Executive Lawrence Simon and former Chief Investment Officer Howard Wohl.

The attorney general alleged that Ivy clients, including dozens of New York union pension and welfare plans and hundreds of investors, lost more than $227 million after Madoff's Ponzi scheme collapsed in December 2008.

Cuomo also said Ivy collected more than $40 million of fees from 1998 to 2008 to advise and conduct due diligence for clients with large Madoff investments.

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Read more: http://www.reuters.com/article/idUSTRE64A3L220100511

[WhiteTara]

1. I hope Dickie gets caught up in this.

I can't think of someone I would like more to go down in this continuing saga.

[defendandprotect]

2. k