One 61-year-old woman, who lost her life's savings in the Bernie Madoff Ponzi scheme is taking her revenge out on the SEC, who she says should have protected her from this horrible, horrible man.
WSJ A New York woman who lost nearly $2 million investing with Bernard Madoff has filed a claim against the Securities and Exchange Commission alleging the agency was negligent in failing to detect an alleged decades-long fraud.The administrative claim for relief was filed with the SEC on Monday and is believed to be the first attempt by an investor to recover lost money from regulators. Phyllis Molchatsky, a 61-year-old retiree from Valley Cottage, N.Y., is seeking $1.7 million in damages from the agency.
Go get'em lady. But does she honestly have a chance? Isn't this a bit like Suing the local police department for "letting" your house get robbed?
I actually think that she does have a chance. The SEC Chairman, Christopher Cox, came out and said "the commission has learned that credible and specific allegations regarding Mr. Madoff's financial wrongdoings...were repeatedly brought to the attention of the SEC staff, but were never recommended to the Commission for action." He basically came right out to the public and admitted that the SEC was partially liable for this deboccle due to negligence. As such, I don't see why the 'little old lady' shouldn't be able to get something out of them.
i don't see it working...simply for the fact that if her case was successful you'd have a flood of lawsuits headed right for the FED, SEC, and fire stations.
I agree, it would be a bad/messy precedent for any judge to set.
Not that anyone deserves to lose their (almost) entire life savings, but she surly signed up for loses at the same time when she was guided by her greed and un-realistic hopes for unreasonably high returns.
She is 61 - didn't she know better NOT to put ALL her eggs (no pun intended) in one basket, or at least have some "SAFE" investments! I have almost no sympathy (unless it’s my grand mother) for individuals who 1) fail to do their own due diligence (blinded by greed), and then have the audacity to 2) BLAME the system for their actions (or lack of.) She should have thought well when Mr. "Made-Off" was having her sign the dotted line. But nonetheless, since I am feeling generous and it’s the holiday season, no harm in wishing her the best of luck with SEC!
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