2 Madoff Victims Sue SEC
Regulators are responsible for victims' losses, suit claims
By Nick McMaster,  Newser Staff
Posted Oct 14, 2009 3:32 PM CDT
Besieged money manager Bernard Madoff arrives at Federal Court in New York, Wednesday, Jan. 14, 2009.   (AP Photo/Stuart Ramson)
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(Newser) – Two investors who lost a combined $2.4 million to Bernie Madoff’s ponzi scheme have sued the SEC for negligence. The lawsuit argues that the commission should reimburse the plaintiffs for their losses because it failed in its duty to protect investors. Regulators had "countless opportunities" to catch Madoff "and botched all of them," it says.

"Instead of watching the backs of ... investors, the SEC—through its negligence—was effectively watching Bernie Madoff's back," says the plaintiffs' attorney, reports CNNMoney. "Now it is time for the SEC to be held accountable and for the federal government to do what the law says it must do: compensate the victims for its negligence."