Claims that Bernard Madoff's investment firm was supplied with cocaine and prostitutes are contained in a lawsuit — filed Tuesday in State Supreme Court in Manhattan — in which wealthy investor Jay Wexler said he lost millions of dollars in the Ponzi scheme.
MELVILLE, N.Y. — You knew Bernard Madoff was no good.
Now come more allegations that aside from picking the pockets of his investors to the tune of billions of dollars, Madoff lowered his sights over the years with drug dealers and sexy masseuses.
Claims that Madoff’s investment firm was run like some out-of-control frat house supplied with cocaine and prostitutes are contained in a lawsuit — filed Tuesday in State Supreme Court in Manhattan — in which wealthy investor Jay Wexler said he lost millions of dollars in the Ponzi scheme.
Wexler is suing an auditing firm, JPMorgan Chase, Bank of New York Mellon and a variety of other defendants — including Madoff’s sons Andrew and Mark — for fraud, breach of fiduciary duties and other civil wrongs. Bernard Madoff is serving 150 years in prison for running the scam estimated to have cost investors at least $13 billion to $18 billion.
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What is really giving the lawsuit some juice are accusations that starting in 1975, Madoff had some employees seek cocaine from dealers. The two men, who weren’t named, were described in the lawsuit as “street tough men from Harlem” who knew the drug world.
Some Madoff employees said drug use in the office was so rampant that the place was known as the “North Pole,” referring to the cocaine. Some investors knew of the drug use, the lawsuit alleges.
Eventually, the employees were fired after drugs were found in their desks, with Madoff fearing the narcotics could bring investigators down on his office, according to the complaint. Wild parties were also common in Madoff’s office, with topless female entertainers, the lawsuit also charged.