Fiserv Inc. and TD Ameritrade Holding Corp. were sued by a New York man who claims the investment firms mishandled his retirement accounts and invested them with Bernard Madoff, the Ponzi-scheme operator.
Fiserv and its Fiserv Trust Co. unit acquired by TD Ameritrade failed to safeguard the assets, Eric Weinstein alleged Thursday in a proposed class-action lawsuit in Denver federal court.
Fiserv, an IRA custodian with operations in Denver, was used by Madoff to set up accounts.
“This case is about the protection and safety of plaintiffs’ retirement accounts that, by definition, hold irreplaceable money that is available after individuals retire,” Weinstein said in the complaint.
Madoff, 70, the principal of New York’s Bernard L. Madoff Securities LLC, on March 12 pleaded guilty to running what U.S. prosecutors called a $65 billion Ponzi scheme, the largest in history. He has not been sentenced.
“Plaintiffs did not realize that their designated custodian had turned actual custody of their pension and IRA accounts over to Madoff’s firm,” Weinstein said in the complaint.
Fiserv didn’t immediately return a call seeking comment. The company is based in Brookfield, Wis.
Omaha-based TD Ameritrade also did not immediately return a call seeking comment.
