Financial services giant Fiserv received a nasty surprise last week – well one would hope it was a surprise. A lesser part of their smorgasbord of offerings to financial services companies was an investment services unit and it would appear their actions (or lack thereof) have caused Fiserv to be tainted by the Bernie Madoff ponzi scheme.
According to Parker Waichman Alonso LLP, Fiserv is being sued for a paltry (not) one billion dollars by investors, for whom the investment unit placed funds with the ponzi king.
I am sure this will see it’s day in court and very soon. I am equally sure there will be many anxious and curious folks waiting on the outcome. It is truly a shame to see such a stalwart and successful company as Fiserv get caught up in this particular investors nightmare. No news is yet posted on the Fiserv website but I am certain the damage control will be quick and assertive.
Fiserv Inc Sued by Madoff Victims
source – Consumer Fraud BlogApril 24th, 2009 meg
Customers that entrusted a former unit of Fiserv Inc. with custody of their retirement plans are suing the technology company to recoup money lost in the Bernard Madoff fraud.
The lawsuit, filed in U.S. District Court in Denver, seeks to recover up to $1 billion on behalf of 800 investors.
A former unit of Fiserv Inc. that custodied retirement-plan money for Madoff’s firm had received repeated warnings from one of its financial advisors in regards to the Ponzi scheme Madoff was orchestrating.
A version of the suit filed on Thursday claims that investment consultant Rogerscasey LLC, which subadvised Fiserv’s retirement funds, issued several warnings about Madoff.
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