MANHATTAN (CN) – Beacon Associates Management Corp. claimed to have a sophisticated investment strategy, but actually turned over “the vast majority” of investors’ money to Bernard Madoff, a class action claims in Federal Court. Attorneys Joel Danziger and Harris Markhoff own and manage Beacon, according to the complaint.
Here are the defendants in the Beacon Associates Case: Beacon Associates Management Corp., Joel Danziger, Harris Markhoff, Ivy Asset Management Corp., The Bank of New York Mellon Corp., and Friedberg Smith & Co.
Plaintiffs say investment firms who worked with Madoff took “large management and advisory fees (from) their clients, often for doing little other than blindly handing over their clients’ funds to Madoff or his related entities, without telling their clients.”
Ivy Asset Management Corp. is a wholly owned subsidiary of The Bank of New York Mellon. Friedberg Smith & Co. was Beacon’s auditor, according to the complaint.
“(A)s a result of the defendants’ conduct, the Fund has been forced into liquidation, and most of plaintiffs’ and the other class members’ investments have been lost,” the complaint states.
The named plaintiffs say they lost $2 million. They are represented by Daniel Krasner with Wolf Haldenstein.