NEWARK (CN) – A class action has been filed against Fiserv Investment Support Services, a trust corporation that allegedly acted as the “exclusive custodian and trustee for [Bernard] Madoff investors.” Plaintiffs say Madoff used Fiserv to manage his clients’ Individual Retirement Accounts. The class claims that because Fiserv was the only trust that managed Madoff’s investments, clients had “no choice but to use them” if they wanted to invest with Madoff.
The class claims that Fiserv, which started managing Madoff’s IRA accounts in 2002, sent investors monthly statements citing investments that never existed. They allege that Fiserv must have “had knowledge of the Madoff fraud” and “rendered substantial assistance to Madoff and his co-conspirators in their fraudulent conduct.”
Fiserv was acquired recently by TD Ameritrade, which also is named as a defendant.
The class claims that TD Ameritrade “did not want to buy the rights” to Fiserv’s accounts and “sought to eliminate accounts with investments from Madoff.”
Fiserv is also accused of trying to “contractually disclaim any liability for the loss of an investment’s value.”
The class is represented in Essex County Superior Court by Douglas Hirsch with Sadis & Goldberg of New York, N.Y.