Bernard L. Madoff Investment Securities LLC Case 12/16/2008

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Company Name(s): 
Bernard L. Madoff Investment Securities
Case Name: 
Bernard L. Madoff Investment Securities LLC Case 12/16/2008
Case Status: 
Lawsuit Filed
Lawsuit Overview
Type of Lawsuit: 
Securities Purchaser Class Action
Date Filed: 
12/16/2008
Court of Filing: 
United States District Court for the Central District of California
Summary: 

On Tuesday, December 16, 2008, another investor has filed a proposed securities class action lawsuit in the United States District Court for the Central District of California on behalf of individuals and groups that invested capital in Bernard Madoff Investment Securities through Stanley Chais, or the Brighton Company, one of the many alleged feeder funds by Chais.

According to the complaint the plaintiff alleges that Bernard Madoff and other defendants engaged in a Ponzi scheme, defrauding investors of billions of dollars. In particular the stockholder alleges that the defendants fraudulently paid returns to certain investors out of principle received from others.

Stanley Chais allegedly managed several investment groups, the monies from which were given to Madoff and Bernard Madoff Investment Securities. The lawsuit claims all defendants contributed to the false, misleading, unlawful, unfair and fraudulent acts and practices associated with the Ponzi scheme.

Madoff, who was arrest and is free on a 10Million Dollar bond, stated ‘it’s all just one big lie’, the business was ‘basically, a giant Ponzi scheme’, and Bernard Madoff Investment Securities was insolvent and had been for years.

Another law firm has announced that it expands investor representation globally in Madoff Fraud case ‘as banks, hedge funds, institutional and individual investors throughout the world examine their portfolios for investments made through Madoff Investment Securities”

The law firm said that “the global impact of the alleged fraud perpetrated by Bernard Madoff and his firm is just beginning to become clear” and “in Spain alone the number of investors seeking recoveries is growing dramatically each day. “