Madoff Investors File $11B Suit Against Picower, Affiliated Entities

Investors have filed an $11 billion putative class action against the estate of Jeffry Picower, alleging that Bernard Madoff’s longtime associate was liable for their losses because he controlled the Ponzi schemer’s brokerage, Bernard L. Madoff Investment Securities LLC (BLMIS) (Goldman v. Capital Growth Co.).

The complaint, filed Aug. 28 in the U.S. District Court for the Southern District of Florida, alleged that for decades, Picower knowingly directed and actively funded and concealed Madoff and the BLMIS fraud.

“Picower’s role included involvement in the creation and dissemination of material misrepresentations and omissions made to BLMIS customers,” the complaint ...