Madoff Investors Sue SEC for Incompetence
The suit seeks to be a class action representing investors who filed administrative complaints with the SEC, and to recover money for direct investors who lost more than $500,000 with Madoff and indirect investors who lost money with Madoff.
Neither group is currently being helped by the current legal efforts against Madoff.
If the suit goes forward, it would be the first such class action ever. To file this ground-breaking case, plaintiffs are relying in part on a precedent from a Louisiana district court case brought over Hurricane Katrina.
The SEC has not yet responded to a call for comment.
Gaytri Kachroo, the lead counsel for the case, urged investors to file complaints with the SEC by December 10 if they want to be included in the class, and to do that they should contact her firm. She also emphasized:
So although the suit is against the U.S. and thus taxpayers, Kachroo is looking to make Madoff's funders pay.We're leaving the lines of communication open with the SEC and the Obama administration to establish a Madoff task force to get the feeder funds, banks -- those that channeled money to Madoff -- to put money into a fund for investors.