In the Margins

Investor sues E&Y over Madoff

October 15, 2015

By The Wall Street Journal

FutureSelect Portfolio Management has accused Ernst & Young of failing to serve as a gatekeeper as the investor sunk millions of dollars into Bernard Madoff's investment firm and maintains E&Y should be held liable for the losses it incurred. "I'm going to prove to you that Ernst & Young had a job. I'm going to prove to you that Ernst & Young didn't do their job," said Steven Thomas, a lawyer for FutureSelect. The Redmond, Wash.-based firm invested some $200 million in feeder funds that pooled investors' cash and funneled it to Madoff until his arrest in 2008 exposed a Ponzi scheme in which investors lost $17 billion. Read the original story from The Wall Street Journal.