Bernie Madoff, Fred Wilpon and The Mets: A 35-Year History

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Little Rick also remembered Jeff Wilpon once arranging for a girlfriend named Linda to work at the Madoff's firm. Wilpon and Linda both attended a Madoff firm Christmas party in a restaurant under the Brooklyn Bridge, said Little Rick, and when Linda tried to break off the relationship they got into a heated argument that turned ugly. Follow BrianRoss on Twitter

Little Rick said he and another employee known as "Big Rick" took Wilpon outside and told him, "Listen, you're done. Don't ever do that again." A spokesman for Jeff Wilpon confirmed the relationship with Linda but did not recall the conversation with Big and Little Rick.

When Jeff Wilpon got married, the Madoffs attended his wedding at a Long Island country club. Fred Wilpon attended Mark Madoff's wedding at the same venue.

Wilpon Invested With Madoff Three Days Before Ponzi Scheme Collapsed

The business relationship between Bernie Madoff and Fred Wilpon seems to have begun in earnest in the 1980s. Madoff ultimately moved his offices to a building co-owned by Wilpon.

Picard's complaint says that Madoff invested in some of Wilpon's real estate ventures and "Fred Wilpon invested in BLMIS [Bernard L. Madoff Investment Securities]."

By the time the Ponzi scheme blew up in December 2008, there were about 500 accounts with Bernard L. Madoff Investment Securities in the names of various Wilpon and Katz family members and associates, the Mets and Sterling Equities.

At the time of Madoff's arrest, the Wilpons had half a billion dollars invested with Madoff, and Wilpon noted Thursday that he was still investing money with Madoff three days before the scam unraveled.

But Picard's complaint says that the Wilpons ignored clear warning signs. The complaint alleges that employees of Sterling Equities were told by an investment partner that Madoff's numbers were "too good to be true" but the company was "in too deep... to do anything but ignore the gathering clouds."

The complaint alleges that after Madoff's arrest in 2008, an employee for a Sterling Equities hedge fund, Sterling Stamos, sent an email in which the employee wrote, "I guess our CIO [Chief Investment Officer] always said it was a scam," the filing says. The complaint also claims Sterling Equities "was aware of and even enabled" Madoff's attempts to avoid regulatory scrutiny by insulating the firm from contact by other clients and their own employees.

On January 28, just before the details of Picard's suit became public, the Wilpons announced that they would consider selling a 25 percent stake in their baseball team "to address the air of uncertainty created by this lawsuit."

Forbes has estimated the value of the franchise at $845 million, making a quarter share worth less than $230 million. Forbes has also reported that the book value of the Mets and their new stadium Citi Field, is a net negative because of heavy debt. Wilpon and partners have borrowed against the Mets and against SportsNet New York, the regional TV network that airs Mets games, and owes money on the bonds used to finance the stadium. Picard's claim for fictitious profits against the Wilpons is $300 million.

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Jeff Wilpon, now the COO of the Mets, told reporters Wednesday that he and his father were victims of an "unfair, unfounded" attack because of their connection to Madoff, and predicted vindication. "We're going to fight [the case] and be victorious in the end," Wilpon said.

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