Suit Alleges Madoff Culture of Drugs and ‘Sexual Deviance’

Cocaine was so prevalent in Bernard Madoff’s office that it was once called the North Pole, according to an expanded lawsuit that alleges a culture of “sexual deviance” and drug use.

The suit filed by plaintiffs lawyer Joseph Cotchett paints a stark contrast between Madoff’s former life and his new routine in prison where he sleeps on the bottom bunk and eats pizza cooked by a child molester, the Los Angeles Times reports. Stories also ran in ABC News, the Associated Press and the New York Post.

"Rather than spending time on private planes or his yachts," Madoff "now shares a cell with a 21-year-old inmate convicted of drug crimes," the complaint says, according to the New York Post account.

Madoff’s prison buddies are former mob boss Carmine Persico and Jonathan Pollard, who was convicted of spying for Israel, the suit says.

The expanded suit adds several defendants, including accounting firm KPMG, JPMorgan Chase and Bank of New York Mellon, according to Reuters. A law firm statement alleged KPMG failed to catch red flags while auditing feeder funds, JPMorgan Chase helped launder Madoff money, and JPMorgan and Bank of New York Mellon failed to file suspicious activity reports about money transfers to London.

The suit describes "wild office parties sans spouses" with topless waitresses, and employees’ sexual encounters on "their boss' sofa." Some of the “feeders” who channeled investor money to Madoff participated in the parties, according to the complaint.

"Madoff's affinity for escorts, masseuses and attractive female employees was well known in the office culture," the complaint says. "A significant amount of the money stolen from investors went towards these lavish indulgences as well as other expenses for his employees, family and favorite feeders."

Madoff revealed details of his Ponzi scheme in a prison interview with Cotchett last July.