Behind the Scenes: Fiserv's Role in Madoff Scheme

The New York Times’ Diana Henriques wrote an excellent account of Fiserv’s (FISV) potential liability for investor losses in several unrelated Ponzi schemes. As you may recall, Zamansky & Associates filed a class action lawsuit in federal court in Colorado on behalf of Madoff investors who were instructed to use Fiserv as their custodian for their IRA accounts.

The article clearly shows that Ponzi schemes almost always have large financial institutions supporting them in one way or another. In this case, Fiserv, one of the largest IRA service providers in the country, may be held accountable for $1 billion in investment losses.

I wrote a blog when I first filed the complaint in April which provides detailed information on the Madoff/Fiserv case.