Lawsuit: Bernie Madoff and Wild Office Sex, Cocaine and Topless Girls

October 22, 2009

(ChattahBox)—San Francisco attorney Joe Cotchett filed an amended complaint in Manhattan Supreme Court on behalf of a victim of Ponzi schemer Bernie Madoff late Tuesday, filled with salacious details of a drug fueled culture at Madoff’s firm and tales of illicit office sex and wild parties, featuring female topless entertainers wearing nothing but g-strings. But despite the juicy details, the lawsuit is squarely aimed at the deep pockets of more than a dozen companies, particularly KPMG, a prestigious accounting firm, responsible for independent audits of Madoff’s U.S. “feeder funds,” including Madoff’s London office.

The lawsuit was filed on behalf of a single plaintiff Jay Wexler, a New York resident who lost hundreds of thousands of dollars in Madoff’s multibillion-dollar Ponzi scam. Besides the auditing firm KPMG, the suit names companies that handled Madoff’s accounts, such as JPMorgan Chase, Bank of New York Mellon and Massachusetts Mutual Life Insurance, claiming the companies should have known of Madoff’s massive fraud.

The lawsuit claims there is “substantial evidence that KPMG either knew or failed to disclose or failed to detect” the massive Ponzi scheme. It names KPMG London employee, David Yim to make the case against the auditing firm. “Either Yim knew or was willfully blind to the blatant fraud occurring. Yim was in constant contact with Madoff and his phone number was in Madoff’s directory of key contact information,” the suit alleges.

Other lawsuits have attempted to draw in other corporate entities into Madoff’s scheme, especially the auditing giant KPMG, which would open up a whole new pipeline of assets to provide compensation to the many victims of Madoff’s fraud. A similar strategy was successfully used in the Enron swindle, by holding the accounting firm Arthur Anderson complicit in the fraud.

Attorney Joe Cotchett, of Cotchett, Pitre & McCarthy, also named Madoff’s two sons, brother and various other business associates claiming they either knew of the fraud or should have detected it.

Cotchett, a well known trial attorney, began his investigation for the lawsuit by playing legal hardball, threatening to sue Madoff’s wife Ruth, unless Madoff granted him a personal prison interview. The San Francisco lawyer met with Madoff and his attorney in July at the federal prison in Butner, NC, where the con man is serving a prison sentence of 150 years for his crimes.

Cotchett said Madoff was extremely candid and didn’t avoid any of his questions. Madoff even admitted to Cotchett that he was surprised he got away with the Ponzi scheme for so many years. “He cares about Ruth,” said Cotchett, “but he doesn’t give a —- about his two sons, Mark and Andrew.” Madoff’s sons have reportedly not spoken with their father or mother since Madoff’s arrest on December 11. And they claim they knew nothing of their father’s fraud.

Despite the looming threat of legal action against his wife Ruth, it’s still a mystery why Madoff granted his only “tell-all” prison interview with a non-family member, a lawyer no less, seeking to sue his associates and other family members.

But Cotchett obviously obtained what he was seeking from Madoff, with plenty of lurid details of hedonism and rampant extravagances, while he cheated many of his investors out of their life savings.

The resulting lawsuit from Cotchett’s prison interview with Madoff provided the lawyer with plenty of fodder for the tabloids, as the 272-page amended lawsuit reads like a scandalous paperback novel or the script for a movie of the week, with all the necessary ingredients of an extravagant lifestyle, sexual promiscuity, wild parties and drugs; all fueled with illicit gains from a massive financial fraud.

And the tale has the necessary element of comeuppance, with Madoff finally facing the consequences for his crimes and guilty lavish pleasures.

Some of the choice quotes from the suit:

“A culture of sexual deviance existed in the office” with employees having “late night affairs in exciting places — such as their boss’ sofa — with whomever they could find.”

“Employees described it as a wild, fast-talking, drug-using office culture.” And Madoff’s “affinity for escorts, masseuses, and attractive female employees was well known in the office culture,” said the suit. Many of the larger “feeder funds” were invited to the wild parties.

Madoff’s wild parties featured “topless entertainers wearing only G-string underwear serving as waitresses.”

Since 1975, Madoff had two drug runners on his payroll who kept a constant supply of cocaine to Madoff’s firm, according to the suit. “Drug use in the office was described as rampant and likened the office to the ‘North Pole’ in reference to the cocaine use.”

A messenger employed by Madoff’s firm to provide Madoff, his wife Ruth and his employees with marijuana known, as “Little Rick” described rampant drug use at the firm. “There was white powder all over that office. It was like the freaking North Pole. Are you freaking kidding me?”

The suit alleges that a “significant” amount of the money stolen from investors went towards these “lavish indulgences as well as other expenses for his employees, family and favorite feeders.”

Cotchett’s suit also describes how far Madoff has fallen from his once vaulted position as a high-flying financier to a federal prisoner “…sleeping in the lower bunk of a two man cell in a federal prison, with a 21-year-old convicted drug dealer for a roommate and a child molester cooking his pizza.”

Madoff’s defense lawyer, Ira Sorkin said of the lawsuit against his client:

“I’m not going to comment on [Cotchett’s] allegations other than to say that he should have filed them with People magazine instead of the court, said Sorkin to Bloomberg. What does this have to do with [the plaintiffs’] lawsuit?”

Cotchett did not name Madoff’s wife Ruth in the lawsuit.

Source


Comments

One Response to “Lawsuit: Bernie Madoff and Wild Office Sex, Cocaine and Topless Girls”

  1. John the Baptisit on October 22nd, 2009 5:25 pm

    Another Luciferian.? One of the enlightened ones. A “sin” o gog er…….

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