Bank of New York Mellon unit sued over Madoff investments

08:26, May 12, 2010      

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People pass by the headquarters of Bank of New York Mellon in New York,the United States, May 11,2010. New York attorney general Andrew Cuomo sued a Bank of New York Mellon unit on Tuesday over Madoff investments.(Xinhua/ShenHong)

New York attorney general Andrew Cuomo sued a Bank of New York Mellon unit on Tuesday over Madoff investments.

Cuomo filed a lawsuit against the Bank of New York Mellon unit and two of its executives alleging they "deliberately" mislead clients about investments tied to Bernard L. Madoff.

The suit alleges that Ivy Asset Management LLC, its former Chief Executive Officer Lawrence Simon, and its former Chief Investment Officer Howard Wohl, deliberately "kept clients in the dark about damaging financial information about Madoff so Ivy could bring in millions in advisory fees."

According to the lawsuit that was filed in N.Y. state supreme court in Manhattan, Ivy was paid over 40 million U.S. dollars between 1998 and 2008 to give advice and conduct due diligence for clients with large Madoff investments.

The suit said 76 upstate New York union pension and welfare plans lost more than 150 million dollars due to the alleged fraud, with investors overall losing more than 227 million dollars.



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