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New Type of Madoff Defendant Emerges: Account Custodian

Bruce Carton | April 3, 2009

A new type of defendant emerged in the Madoff fallout this week as customers of Fiserv Investment Support Services, a former unit of Fiserv Inc. (FISV), filed a class action lawsuit on Thursday against Fiserv trying to recoup their lost money. The case has reportedly been filed in federal court in Denver by Jacob Zamansky of Zamansky & Associates on behalf of 800 investors who are hoping to recover up to $1 billion.

The lawsuit alleges that although Fiserv and its Fiserv Investment Support Services unit "were the designated ‘custodians’ for their pension and IRA accounts, that designation was pure fiction." In fact, the complaint alleges, Fiserv Investment Support Services improperly turned actual custody of their pension and IRA accounts over to Madoff,...

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