Wilpon and partners face suit in Madoff fraud

To whom did the Wilpons's and partners owe a duty?

Suit Says Mets Owners ‘Consciously Disregarded’ Warning Signs About Madoff - NYTimes.com

Text of complaint by SIPC trustee in Picard v. Katzh and Wilpon, et al.

I. NATURE OF THE ACTION

1. There are thousands of victims of Madoff’s massive Ponzi scheme.  But Saul Katz 

is not one of them.  Neither is Fred Wilpon.  And neither are the rest of the partners at Sterling 

Equities (“Sterling”) who, along with Fred Wilpon and Saul Katz, are sophisticated investors 

who oversee and control Sterling and its many businesses and investments.  

2. The Sterling partners, their family members, their related trusts, and various 

entities they own, operate, and control were collectively one of the largest beneficiaries of 

Madoff’s fraud, reaping hundreds of millions in fictitious profits over their quarter-century 

relationship with Madoff.  The Sterling partners, their family members, trusts and Sterlingrelated entities made so much easy money from Madoff for so long that despite the many objective indicia of fraud before them, the Sterling partners chose to simply look the other way...