Law Firms
Law Firm Sues Insurance Broker in Effort to Recover $1.6M Lost to Madoff
A Washington, D.C., law firm that lost $1.6 million in pension money invested with convicted Ponzi schemer Bernard Madoff has sued its insurance broker in an effort to recover the money.
Grossberg, Yochelson, Fox & Beyda claims in the suit that its insurance broker did not obtain an insurance bond that covered fraud by outside money managers handling pension funds, as required by federal law, the Washington Business Journal reports.
The law firm learned in 2009 that its policy covered only fraud by its own employees, the story says. The defendant in the suit, filed on Oct. 22 in Washington, D.C., superior court, is Shannon & Luchs Insurance Agency Inc. The agency did not return a phone call for comment by the Washington Business Journal.
