By: Bill Waters - Staff Writer
Feb 4, 2021
Madoff and Mets owner owe $300m in lawsuit. Bernie Madoff and the owners of the Mets reaped more than $300m, lawsuit says. In fact, they used false profits and used a large chunk of it to run the baseball team.
The lawsuit claims the owners were so dependent on the disgraced financier’s too-good-to-be-true returns that it “faced a severe and immediate liquidity crisis” when Madoff’s crimes were revealed in 2009.
The searing allegations were made by Irving Picard, the trustee appointed to recover funds for investors burned by Madoff’s scheme. The suit filed by Picard in federal bankruptcy court in Manhattan names Sterling Equities, along with its partners and family members, including Mets owner Fred Wilpon, team president Saul Katz and chief operating Jeff Wilpon, the owner’s son. Picard said Sterling withdrew over $94 million in fictitious profits from Mets accounts with Madoff.
“Given Sterling’s dependency on Madoff, it comes as no surprise that the partners willfully turned a blind eye to every red flag of fraud before them,” Fernando A. Bohorquez, Jr., a lawyer representing Picard, said Friday. The suit had been filed under seal in December while the parties tried to work out a settlement. But lawyers told a judge this week that talks had collapsed and consented to having the complaint made public.Business News Join The Conversation
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