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| Bernard Madoff |
Repercussions from the Bernie Madoff case continue. The latest is a $265,000 arbitration settlement against Morgan Keegan awarded to Jeffrey and Marisel Lieberman, whose money Morgan Keegan invested in a Madoff feeder fund.
The Financial Industry Regulatory Authority (FINRA) panel called Morgan Keegan “grossly negligent” in its decision. FINRA stated that “there is clear and convincing evidence that Morgan Keegan was grossly negligent in not performing substantial due diligence and as a result it fraudulently misrepresented the risk of this investment."
The Liebermans invested $200,000 with Morgan Keegan, and all the money was deposited into the Fairfield Greenwich Group hedge fund, a conduit to Madoff’s Ponzi scheme. This, despite the Liebermans’ written aversion to speculation as an investment objective.
Besides restitution, Morgan Keegan was ordered to pay the Liebermans $65,000 in damages and court costs. The Liebermans’ financial advisor, Julio Almeyda, was cleared of all charges.
