In a legal complaint filed Tuesday by Burlingame, California-based lawyer Joseph Cotchett, who represents about a dozen victims of Madoff’s massive investment Ponzi scheme, Bernard Madoff’s investment firm is described as a place where a culture of “sexual deviance” and drug use was the norm.
According to the suit, employees described “wild office parties sans spouses” featuring “topless entertainers wearing only G-string underwear serving as waitresses,” and sexual encounters on “their boss’ sofa.”
“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.”
The lawsuit seeks financial damages from more than a dozen companies and individuals associated with Madoff, claiming the organizations should have detected Madoff’s fraud.
Behind the Facade, Madoff and BMIS Had a Dark Side:
83. Behind this facade was a different side of Madoff and BMIS. Starting in 1975, Madoff began sending a long-time employee and office messenger to obtain drugs for himself and the company who worked with another individual who became a supplier to BMIS. These two men were described as street tough men from Harlem “who were not to be messed with.” Their job was to get drugs and bring them to the office for use at BMIS. The employees in the office were well known and everyone knew, including some special investors. Drug use in the office was described as rampant and likened the office to the “North Pole” in reference to the cocaine use. Eventually the main employee supplier was fired for his drug abuse when cocaine and other undisclosed drugs were found in his desk in 2003. Madoff worried that it might bring in drug prosecutors who might uncover the big scam.
84. In regards to the diversion-filled office environment, employees described the wild office parties sans spouses. There were topless entertainers wearing only “G-string” underwear serving as waitresses, and a culture of sexual deviance existed in the office. The employees had late night affairs in exciting places – such as their boss’ sofa “with whomever they could find.” Employees described it as a wild, fast-talking, drug-using office culture.