NY AG sues money manager in Madoff scandal

Date: Wednesday, May 12, 2010
Author: Associated Press

New York's attorney general has sued a hedge fund management firm and two of its former executives for failing to alert clients about Bernard Madoff's investment practices.

Andrew Cuomo's office claims the firm Ivy Asset Management discovered a decade ago that Madoff wasn't telling the truth about what he was doing with investors' money but didn't tell clients.

The suit says Ivy's customers lost $227 million when the scheme collapsed.

The government says internal e-mails show that Ivy had analyzed Madoff's purported investment strategy and suspected he wasn't executing the stock trades he claimed to be making. Madoff is in prison as a result of the scandal.

Ivy Asset Management had no immediate comment on the lawsuit.