CNBC’s Darren Rovell reported earlier that the trustee suing on behalf of victims of Bernie Madoff has amended his complaint against Sterling Equities and Fred Wilpon to seek $300 million in what he believes are illegal profits and $700 million in principal earned by the firm with the help of Madoff investments.
The previous complaint was asking for $300 million in illegal profits and an unspecified amount of principal. According to Rovell, the Mets owners call the charges a “work of fiction.”
Irving Picard also threw in a salacious detail about an “interest- and cost-free” loan given by Madoff to Sterling, which also owns the New York Mets, for use in buying out Cablevision. David Cohen, the Mets General Counsel, had this to say about that loan:
“This is more nonsense from the Trustee. The $54 million represented funds the Sterling partners had invested with Madoff, as the Trustee acknowledges. As the Trustee also acknowledges, that money was never used — and in fact was returned the next day — because the necessary funds were received from Sterling’s lenders by the buyout deadline, and were used to fund the buyout.”
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