Friday, February 4, 2011

Wilpon and partners face suit in Madoff fraud

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

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