Attorney General Andrew Cuomo has filed suit against Ivy Asset Management, a fund of funds belonging to Bank of New York Mellon, alleging that the $227 million the unit invested with Bernie Madoff was lost due to “egregious” breaches of fiduciary duty on behalf of two senior managers at the firm, who, e-mails quoted in the suit show, had doubts about the wisdom of investing with Madoff but did so anyway simply in order to, the AG alleges, “enrich themselves.” As usual, in his statement, Cuomo got a little bit carried away with the verbiage, and ended up mixing up a water metaphor.
“Ivy and its former co-principals saw the trouble with Madoff coming around the bend, but instead of guiding their clients through the financial waters, they sold them down the river.”
Now, if Cuomo has anything to do with it, they’re going to be the ones left floating belly up.
Cuomo Sues Bank of New York Unit Over Madoff [DealBook/NYT]
Cuomo Sues Ivy Firm, Ex-Officers [WSJ]
