NEW YORK — New York's attorney general sued a hedge fund management firm and two of its former executives Tuesday, claiming they discovered a decade ago that Bernard Madoff wasn't being truthful about his investment methods, but kept their suspicions quiet.
Ivy Asset Management customers, which included several union pension funds, wound up losing $227 million when the scheme collapsed, according to the suit.Attorney General Andrew Cuomo said the firm and its former principals, CEO Lawrence Simon and CIO Howard Wohl, had a duty to tell clients that they were concerned about Madoff.
The suit claims they stayed silent because pulling their clients money would cost them millions of dollars in management fees.
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