Economy

Lawsuit seeks recovery of fees paid by Madoff's investors

MIAMI — While lawsuits over the Bernie Madoff swindle proliferate, one investor suit seeking class-action status in Miami federal court is pursuing the recovery of fees charged to invest in a fund that funneled money to the convicted con man.

A Mexican couple on Friday sued London's Standard Chartered bank, claiming the fees they paid the bank to invest in the Madoff feeder fund Fairfield Sentry were based on "phantom or fraudulent valuations" of the fund's assets.

The suit claims the damages of the plaintiffs and the proposed class are more than $5 million. Standard Chartered placed about $300 million of investors' money in the Sentry fund, the suit alleges.

"The crux of the suit is what's lost is lost, unfortunately, but at the very least you have to give back the fees you did not earn," said David Rothstein, a Miami lawyer who filed the lawsuit in U.S. District Court in Miami.

Read more at MiamiHerald.com

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