Bad Off Over Madoff and Fighting Back

Retirement investors are suing a Connecticut bank over lost investments

Bernie Madoff wiped out $60 million in retirement funds for investors, the victims say, and they are going after the bank that invested their nest eggs with the swindler.

A lawsuit has been filed against Connecticut Community Bank, owner of Westport National Bank, on behalf of retirement account holders.

In December, Westport Now reported that Florida investors retained two Florida law firms to investigate claims against parties regarding the Madoff Ponzi scheme. Westport National Bank was among them. A promoter contacted people in several states to invest with the bank, the Web site reported.

The bank denied the allegations.

“As custodian, Westport National Bank served in a ministerial capacity only,” president Richard T. Cummings Jr. said in a statement published on Westport Now. Cummings became president of the bank in 2003 and has been with it since its inception in 1998.

The suit alleges that the bank failed to perform its custodial obligations, which would have required Madoff to deliver the securities he was purporting to purchase for the account holders.

The lawsuit also alleges Westport National Bank charged false account fees as if it were actually holding Madoff's investments.

The Associated Press left a telephone message was left with the bank.

Copyright AP - Associated Press
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