NEW ORLEANS, Dec. 11, 2008 (GLOBE NEWSWIRE) -- Kahn Gauthier Swick, LLC announces that it has commenced an investigation into Bernard L. Madoff Investment Securities following the filing of charges Thursday by the United States Securities and Exchange Commission regarding the alleged "stunning fraud" of "epic proportions" purported to have been committed over a series of several years and by the investment fund and its eponymous founder.
Having charged Madoff and his firm with having committed a multi-billion dollar Ponzi scheme, perpetrated upon advisory clients of his firm, and having frozen Madoff's assets -- including those of the fund -- the SEC said Madoff had indicated to two of his senior employees on Wednesday that he had been "paying returns to certain investors out of the principal received from other, different investors" for years. He estimated that losses from the fraud were at least $50.0 billion.
Bernard Madoff was arrested and arraigned late Thursday, and was released after posting a $10.0 million bond secured by his Manhattan apartment.
Lewis S. Kahn, Managing Partner at KGS stated, "It is beyond belief that Madoff, the former Chairman of the NASDAQ Stock Market who was also on the board of governors of the National Association of Securities Dealers, appears to have stolen as much as $50 billion from his fund's investors." Mr. Kahn further stated that, "Madoff's actions are especially shocking given the fact that Madoff's corporate website boasts of his 'personal interest in maintaining the unblemished record of value, fair-dealing, and high ethical standards that has always been the firm's hallmark.'"
KGS also understands, from reports by people familiar with the firm, that the two unnamed senior employees in the SEC complaint are Bernard Madoff's sons, Andrew Madoff, director of trading, and Mark Madoff, the firm's senior managing director and chief compliance officer.
If you are an investor in Bernard L. Madoff Investment Securities and would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free at 1-866-467-1400, ext., 100, or by email at lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit www.kgscounsel.com.