The official in charge of recovering funds from Bernard Madoff's Ponzi scheme said that he has new evidence that accountant Steven Mendelow played an instrumental role in growing and concealing the massive fraud, profiting in the process, Dow Jones Daily Bankruptcy Review reported today. Lawyers for trustee Irving Picard at a hearing yesterday asked Judge Stuart Bernstein to let him amend a $20 million lawsuit against Mendelow to reflect new allegations that he knew Madoff wasn't making the stock trades and enormous profits he peddled to his investors. In return for funneling new investors into his brokerage firm, Madoff guaranteed "special financial benefits," including a 17 percent return on some of Mendelow's accounts, Picard's lawyer said yesterday. Read more. (Subscription required.)
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