Skip to comments.U.S. Department of Labor sues Syracuse firm to recover union pensions that went to Madoff
Posted on 10/21/2010 4:17:52 PM PDT by Libloather
U.S. Department of Labor sues Syracuse firm to recover union pensions that went to Madoff
Charley Hannagan / The Post-Standard
Updated: Thursday, October 21, 2010, 5:53 PM
Syracuse, NY -- The U.S. Department of Labor today accused J.P. Jeanneret Associates Inc., of Syracuse, its executives, and three other investment companies and executives, of causing pension, health and benefit plans to lose hundreds of millions of dollars through investments with Bernard L. Madoff.
The lawsuit was filed today in the U.S. District Court for the Southern District of New York. If successful, it would return money to thousands of workers in Central New York workers who had money in union pension plans that invested with Jeanneret, a Syracuse investment firm.
The suit names Beacon Associates Management Corp., Andover Associates Management Corp., Ivy Asset Management LLC, and J.P. Jeanneret Associates Inc.
It names Jeanneret executives John P. Jeanneret and Paul Perry, Joel Danziger and Harris Markhoff of Beacon and Andover, as well as Lawrence Simon and Howard Wohl of Ivy. Read the 73-page lawsuit
Jeanneret did not return a phone call this afternoon seeking comment. His firm managed investments for plans covering 60,000 workers in Central New York.
His firm is being sued by unions representing 21 locals seeking to recover some of the $150 million they lost.
Earlier this year, New York State Attorney General Andrew Cuomo also sued Ivy over the pension fund losses. The states suit does not name Jeanneret; the complaint suggests he was mislead by Ivy.
Jeanneret and the other defendants provided advice and investment services to the plans, in some cases stretching back to the 1980s.
The federal Department of Labor suit alleges the defendants violated the Employee Retirement Income Security Act by recommending, making and maintaining investments with Madoff. It resulted in the loss of millions of dollars in plan assets, the Department of Labor said.
It alleges the defendants failed to take prudent action to investigate or monitor Madoff, and that they failed to protect the plans interests while collecting millions in fees for themselves as a result of the Madoff investments.
Madoff was arrested in December 2008 on charges he ran a $65 billion pyramid scheme.
He pleaded guilty to securities fraud, investment adviser fraud, mail fraud, wire fraud, money laundering, false statements, perjury, false filings with the U.S. Securities and Exchange Commission and theft from an employee benefit plan.
He is serving a 150-year prison sentence. The government has auctioned or sold his multi-million-dollar homes and possessions to repay investors.
Good luck with that.
Can you believe that this one crook.
Who happened to almost exclusively prey upon the chosen people.
He is the ONLY major player in this scheme costing us trillions and trillions of dollars who actually like,
WENT TO JAIL?
Even anti semetic in scope.
Any investment counselor or investment company that put client funds with Maddoff should be fully responsible. All they had to do was look at who was auditing his books to find that he wasn’t credible. Any legit investment fund has a well known national or local auditing/accounting firm.
He was probably giving out bid commissions and having great cocktail parties and prize invitations for his agents.
“The federal Department of Labor suit alleges ..... the defendants failed to take prudent action to investigate or monitor Madoff, .....
To distill this down to its unfathomably ludicrous essence, the Department of Labor is in fact suing this firm for failing to perform the legal duties and obligations of the SEC, which managed to snooze and ignore its way through a decade or so of repeated warnings from numerous financial sector whitstleblowers that Madoff’s operation was suspect.
Explain to me again how this equates to “Rule of Law”.
The company was running the unions' pension plans? What's wrong with this picture? (I always thought that the unions ran their own pension plans so that the union bosses could get the kickbacks.)