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
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.”