SEC Files Action Against Madoff Recruiters

Filed June 23rd, 2009 meg

The SEC has brought a civil enforcement action against Cohmad Securities Corp. with securities fraud.

Also included in the action are Cohmad chairman Maurice Cohn, chief operating officer Marcia Cohn and registered representative Robert Jaffe.

They are charging that the brokerage firm raised money from investors to feed Bernard Madoff’s Ponzi scheme.

Separately, the SEC has accused investment adviser Stanley Chais of operating feeder funds that poured money into Madoff’s Ponzi scheme.

Both SEC complaints seek injunctions, financial penalties and court orders requiring the defendants to turn over ill-gotten gains.

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