Cuomo Says Investment Firm Knew Madoff Was Cooking Books But Didn't Move Clients' Money

"Unfortunately, a limited number of clients from a legacy non-discretionary advisory business of Ivy were among Bernie Madoff's victims when his plot was exposed in December 2008," said the statement. "These non-discretionary advisory clients were primarily professional investment advisors who chose to maintain Madoff exposure for their own clients. Ivy informed its clients that it had questions about Madoff that it could not answer and recommended to its clients that they reduce their exposure to Madoff."

The Madoff Family Album

Bank of New York Mellon also said it was cooperating with the Attorney General, and noted that the executives cited in the complaint were no longer with Ivy. "[We] are disappointed that the Attorney General has filed this complaint," said BNY Mellon in a statement. "We look forward to putting this legacy issue behind us."

Madoff pled guilty to 11 felony counts in March 2009, including securities fraud, mail fraud, wire fraud, money laundering, and perjury. He is serving a 150-year sentence at a federal facility in North Carolina.

In March 2010, the man who allegedly made Madoff's Ponzi scheme possible by cooking the books at the investment firm became the latest associate charged. Daniel Bonventre was indicted on federal charges of conspiracy, falsifying records, securities fraud and filing false tax returns.

Bonventre, 63, was Director of Operations for Bernard L. Madoff Investment Securities, LLC for 30 years.

At the time, Bonventre became the sixth person charged in connection with the Ponzi scheme, joining Madoff, computer programmers George Perez and Jerome O'Hara, former Madoff accountant David Friehling, and Madoff's former CFO Frank DiPascali.

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