U.S. Sen. Frank Lautenberg’s Cliffside Park-based family foundation can proceed with a securities fraud suit against Peter Madoff, brother of convicted Ponzi schemer Bernard Madoff, a federal judge ruled.
U.S. District Judge Stanley Chesler in Newark declined to dismiss a claim that Peter Madoff violated the Securities Exchange Act by failing to disclose to investors that his brother’s company was engaged in a fraud.
The suit, filed by two of Lautenberg’s children and by the Lautenberg Foundation, claims they had $8.922 million invested with Bernard L. Madoff Investment Securities.
Bernard Madoff, who is serving a 150-year prison term after pleading guilty to
criminal securities fraud earlier this year, is not a defendant in the case.
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