Mass. wants to halt fund associated with Madoff

BOSTON (AP) - Massachusetts Secretary of State William Galvin took the first steps Wednesday to stop a company that he calls a "feeder fund" for Bernard Madoff from doing business in the state.

Galvin asked state regulators in an administrative complaint to revoke the securities registration for Cohmad Securities Corp. for failing to provide information about its relationship with Madoff, who is accused of bilking billions from his investment clients in a Ponzi scheme.

Galvin said Cohmad officials have ignored subpoenas or given incomplete responses as part of the state's probe of Madoff.

"We cannot tolerate licensed securities dealers who refuse to assist in the detection and prosecution of fraud," Galvin said in a statement.

The complaint also seeks an accounting of all Massachusetts investors Cohmad referred to Madoff's company, Bernard L. Madoff Investment Securities LLC, and all fees earned.

An associate of Madoff, Robert Jaffe, appeared last week before officers of the Massachusetts Security Division, but officials declined to say what Jaffe discussed. Galvin has described Jaffe as a registered agent and principal of Cohmad, which is in the same New York City building as Madoff's firm.

Jaffe's lawyers have said he had no knowledge of Madoff's actions and was himself a victim who lost millions of dollars.

A Cohmad spokeswoman in New York said the company had no comment.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
KOLO-TV 4850 Ampere Drive Reno, NV 89502
Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 39510337 -
Gray Television, Inc.