Mass. regulator moves on Madoff feeder fund

Massachusetts Secretary of State William Galvin’s securities division asked wants to revoke the license of a brokerage firm which served as a feeder fund for the investment firm of accused swindler Bernard Madoff.
MAR 06, 2009
By  Bloomberg
Massachusetts Secretary of State William Galvin’s securities division asked the state’s hearings officer yesterday to move on his call to revoke the license of a brokerage firm which served as a feeder fund for the investment firm of accused swindler Bernard Madoff. If granted, the default judgment would revoke the registration of brokerage Cohmad Securities Corp. and put it out of business in Massachusetts. The action would also require Cohmad to disclose the names of all the Massachusetts investors the firm or its agents referred to New York-based Bernard L. Madoff Investment Services LLC, as well as any fees earned in connection with the referrals, Mr. Galvin’s office said. The secretary of state began investigating the firm on behalf of several Massachusetts residents who said they were introduced to Mr. Madoff by representatives of Cohmad Securities. Cohmad is a New York-based brokerage firm partly owned by Mr. Madoff. Mr. Galvin filed a civil complaint last month against Cohmad that is currently being heard by a state hearings officer. On Dec. 11, Mr. Madoff was arrested and charged with conducting an alleged $50 billion Ponzi scheme.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.