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Madoff sons aware of fraud, lawsuit claims

Bernard Madoff arrives at Federal Court where he is expected to plead guilty to securities fraud charges on March 12, 2009 in New York. Victims will also be in court to testify against the disgraced financier who is accused of masterminding a $50 billion Ponzi scheme. (UPI Photo/Monika Graff)
Bernard Madoff arrives at Federal Court where he is expected to plead guilty to securities fraud charges on March 12, 2009 in New York. Victims will also be in court to testify against the disgraced financier who is accused of masterminding a $50 billion Ponzi scheme. (UPI Photo/Monika Graff) | License Photo

NEW YORK, June 17 (UPI) -- Two former Bernard Madoff Investment Securities traders said the New York broker's sons, Andrew and Mark Madoff, were aware of their father's investment scam.

Former traders Reed Abend and Richard Stahl have filed suit against the brothers, who managed the company's trading operations, the New York Post reported Wednesday.

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The suit claims the sons lied in 2001 in their reaction to a Barrons article that called the firm's high rates of return questionable. In their reaction, the sons said their father's business was on the up and up, the Post said.

Bernard Madoff, is in jail awaiting sentencing after pleading guilty to fraud that has lost investors $65 billion.

Abend is seeking $474,000 in compensation for deferred payments. Stahl is seeking $1.3 million in deferred payments, the newspaper said.

The sons' attorney Martin Flumenbaum said, "the lawsuit is totally without merit."

"Andrew and Mark had no knowledge of their father's fraudulent conduct," he said.

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