A putative class action against Bernard Madoff and his firm was filed on Friday in the U.S. District Court for the Eastern District of New York. Dow Jones Newswires reports that the lawsuit closely mirrors criminal charges filed by federal prosecutors and a civil complaint filed by the SEC on Thursday.
According to the article, the shareholder lawsuit claims
Bernard L. Madoff Investment Securities LLC was falsely represented to investors as “a legitimate enterprise operating as a lawful broker and dealer, when in truth and in fact BMIS was a fraudulent Ponzi scheme, which could remain solvent only by paying out interest and dividend commitments through the distribution of investor principal.”
The shareholder lawsuit reportedly names Madoff, his firm and 100 unnamed persons as defendants, and was filed by investor Irwin Kellner of Port Washington, N.Y. Kellner alleges that he invested about $1.25 million with the firm in 1998 and another $1 million in April 2000.