Trustee: Mets tried to buy fraud insurance

A court-appointed trustee says the owners of the New York Mets

reaped profits from Bernard Madoff’s financial Ponzi scheme even as

they shopped for insurance to protect themselves in case the scam

collapsed.

Trustee Irving Picard says partners in Sterling Equities

contacted a broker to ask about insuring their account with Madoff

in February 2001. In one handwritten note, court records say

partner Arthur Friedman wrote the insurance should cover ”fraud or

fidelity” with the word ”Ponzi” in parentheses. Picard filed the

court documents Thursday.

Picard claims Sterling partners knew Madoff was stealing from

new investors to pay off older investors. He wants them to repay $1

billion to Madoff’s victims.

Sterling denies it knew about Madoff’s wrongdoing. In a written

statement, the group said there were no ”red flags and they

received no warnings.”