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Feds Accused Of Mishandling Madoff Forfeitures

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Bernie Madoff

Bernie Madoff (credit: Stephen Chernin/Getty Images)

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NEW YORK (AP) — An accountant who once worked for the U.S. Marshals Service is suing the agency, alleging that an employee of the service did a shoddy job handling forfeitures including some investments related to the fraud of jailed financier Bernard Madoff.

The lawsuit filed last month in federal court in Manhattan claimed that a man overseeing the sale of assets undervalued millions of dollars in assets, selling them without public notice or competitive bidding. A message left Monday with a spokesman from the office was not immediately returned.

The lawsuit said those assets included a share of a private equity position known as the “Delta Fund” that had belonged to Madoff’s wife, Ruth. The lawsuit said the investment was “discounted sharply below fair value” when it was sold. It sought unspecified damages.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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