MADOFF SECURITIES FRAUD CLAIMS

With the revelation that substantial monies were lost, and that governmental insurance program will not cover much of the losses, attention now focuses upon the culpability of third parties.  Material relating to securities fraud claims are contained on our sister site mortgagefraud-lawyer.com

1. Individual Claim Assessment

General rules may be tough to articulate as many claims will be fact-sensitive focusing upon the broker or financial adviser's specific role and compensation.

2. A recommendation alone may not trigger liability

While investors may be justly angry at those who suggested Madoff, a recommendation alone may not be sufficient for liability. 

3. Compensation and Ongoing monitoring

In some cases, the broker or financial advisor receives compensation with the question becoming what obligations he assumed by virtue of such compensation. What type of due diligence was performed, and the answer is that many conventional checks were not done on Madoff funds.  The financial advisor may suggest that the investor knowingly relinguished such oversight.  

4. Hedge Funds

Some hedge funds utilized Madoff with the question being whether these investments were consistent with disclosures and documents provided to the investor.  Clearly substantial commission were garnered with the question being whether an obligation of due diligence was assumed.

5. Suitability

NASD Rule 2310 provides, (a) In recommending to a customer the purchase, sale or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer.  Suitability incorporates various factors including a risk profile.  Particularly where funds were concentrated, was the investment appropriate.

6. Accounting Negligence

Accountants and other professionals who reviewed financials, provided opinions, and rendered auditing services may have failed to perform such services with reasonable care.  See auditor and accounting fraud   accounting negligence defenses 

QUALIFICATIONS AND EXPERIENCE OF THIS LAW OFFICE

Howard A. Gutman has been involved with fraud and contract litigation for the past 15 years.    He has spoken at the National Press and on Good Day New York and been  interviewed by NBC Nightly News and Newsday.  His cases have been profiled in the Star Ledger, Bureau of National Affairs Magazine, and New York Times. He is a graduate of the University of Michigan, ranked among the top 10 law schools in the nation, where he was an editor of its Journal of Law Reform.  Prior to establishing his practice, Mr. Gutman was employed by one of the leading law firms in New Jersey and a prominent international law firm located on Wall Street.  

FREE INITIAL CONSULTATION  

We offer a free initial telephone consultation to discuss your investment or securities claim.   Please feel free to call or e-mail our office.

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