Foundation Sues Government, Charging Negligence for Missing Madoff Fraud

A charitable foundation has sued the U.S. government over the Securities and Exchange Commission’s failure to uncover Bernard Madoff’s Ponzi scheme, reports Bloomberg.

In a lawsuit filed Thursday in New York federal court, the Michael and Ruth Slade Foundation says the regulatory agency’s inaction “was a substantial factor” in the charity’s $2.5-million losses from the Madoff fraud and the billions it cost other investors.

Two individual investors, Alan and Blayne Goldman, filed a similar lawsuit.