Madoff Got $10M Investment Days Before Arrest: Suit

Funds were businessman's first Madoff deal
By Matt Cantor,  Newser User
Posted Jan 3, 2009 9:21 AM CST
A businessman is suing after he lost $10 million to Madoff, he says.   (AP Photo/Jason DeCrow)
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(Newser) – A New York businessman is suing to recover $10 million he handed over to Bernard Madoff 6 days before the alleged Ponzi schemer was arrested, the Wall Street Journal reports. Martin Rosenman wired the funds to a JP Morgan Chase account controlled by Madoff, who told the first-time investor that he would hold the money until next year. While Rosenman is one of many hoping to recover funds, his lawyer says time may be on the Bronx fuel company chief's side.

"If you put your money in on a Friday and the following Thursday the man is arrested, you've got a good argument that the money is still there," he said. Though Rosenman got a fax from Madoff’s firm saying he had sold short $10 million in US bills set to mature in March, the complaint says Rosenman had never authorized such a move, that no ID number exists for the securities, and that the money was never transferred from the Chase account.