More than $47 million sought…Madoff’s Ponzi scheme, the suit says, was “due to the gross negligence of the United States Securities and Exchange Commission (SEC) ,” which “during the past 16 years … was given copious opportunities to stop Madoff’s fraud” and “failed to recognize any of the smoking guns provided to the SEC by credible third parties and industry experts.”

ASPEN REAL ESTATE — At least four Aspen-area victims of disgraced money manager Bernie Madoff are suing the U.S. government on allegations that it allowed the financial scam to carry on despite numerous warning signs over the years.Combined, the four victims have filed separate lawsuits seeking more than $47 million in damages.The most recent suit, filed Dec. 9 in the U.S. District Court of New York, alleges that Aspen Fine Arts Co., an investment entity controlled by Aspen resident Melvin Knyper, was fleeced out of $19.8 million by Madoff.
By Rick Carroll, Dec. 23, 10 Aspen Times

Link to article