Charity Claims U.S. Owes It $19M for Madoff

MANHATTAN (CN) - The Litwin Foundation, a charitable nonprofit, demands $19 million from the United States of America, for Bernard Madoff's Ponzi scam. Litwin claims the gross negligence of the SEC in performing, or failing to perform its nondiscretionary functions, allowed Madoff to scam the charity for that amount.

The 68-page federal complaint contains as attachments the SEC's Office of Investigations "Investigation of Failure of the SEC to Uncover Bernard Madoff's Ponzi Scheme - Public Version," and the SEC Inspector General's report on "Robert Allen Stanford's Alleged Ponzi Scheme."

The 226 pages of attachments conclude with an SEC summary of its investigation of the fact that SEC employees apparently had time to watch pornography on government computers, on government time, but couldn't manage to stop Madoff.

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