November 2, 2010
SEC and Certain Madoff Feeder Firms Agree to Partial Settlement
The SEC announced that on November 1, 2010, it submitted to the court for its approval partial settlements in its Madoff-related action, SEC v. Cohmad Securities Corp., et al. If approved, the settlements will permanently enjoin defendants Robert M. Jaffe, Maurice J. Cohn, Marcia B. Cohn and Cohmad Securities Corp. (“Cohmad”), from future violations of the federal securities laws.
The amended complaint filed with the settlements alleges the defendants made material misrepresentations and omissions by referring hundreds of investors to Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities Corporation LLC (“BMIS”), while the defendants were aware of and failed to disclose facts that should have raised serious questions about the propriety of the Madoff investment. The investors referred to BMIS by the Defendants provided BMIS with more than one billion dollars. In consenting to partial judgments, each defendant neither admitted nor denied the allegations of the amended complaint, except that solely for purposes of the Court’s later determination of monetary relief, the allegations of the amended complaint are accepted as and deemed true by the Court.
Each partial judgment provides that the issue of disgorgement, prejudgment interest and civil penalty relief against the defendants will be decided at a later time.
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