June 23, 2009 Leave a comment
Federal regulators on Monday charged a New York brokerage firm and a California investment adviser with securities fraud, accusing them of funneling billions of dollars from investors into Bernard Madoff’s Ponzi scheme.The Securities and Exchange Commission announced civil fraud charges against Cohmad Securities, its chairman, Maurice Cohn, chief operating officer Marcia Cohn and broker Robert Jaffe.
Named in a second SEC lawsuit was Los Angeles-based investment adviser Stanley Chais, who allegedly oversaw three funds that invested all of their assets — nearly $1 billion — with Madoff.
Madoff secretly controlled New York-based Cohmad and used it to procure a steady stream of funds for his multibillion-dollar fraud, the SEC said. Read more of this post