Funds of Hedge Funds Politics & Regulation Tax & Legal

Ivy faces lawsuit over Madoff exposure, winds down business


New York Attorney General Andrew Cuomo has claimed in a lawsuit that internal e-mails reveal Ivy Asset Management and its co-principals deliberately misled clients about their exposure to Bernard Madoff in its funds.

Years of exposure to Madoff cost Ivy investors more than $227 million and drained New York pension and welfare funds, said Cuomo. The lawsuit was filed last month against Ivy, its former chief executive officer, Lawrence Simon, and its former chief investment officer, Howard Wohl, for misleading clients about investments tied to Madoff. The suit alleges that Ivy and the principals kept their clients in the