Mets principal owner Fred Wilpon was sued in Manhattan federal court Friday over losses of Sterling Equities employees in a 401(k) plan that invested nearly all of the funds with Bernard Madoff, Reuters reported. The report stated that $16.2 million of the plan's $17.6 million in assets were invested with Madoff, and alleges Wilpon is responsible for failed fiduciary responsibility. Wilpon owns Sterling Equities.
"While defendant Wilpon has been quoted as claiming that he and his business family are 'fine,' his loyal employees (many of whom had previously been laid off) have lost their retirement savings," Reuters quoted from the complaint.
Sterling Equities claims the suit has "no merit" and issued the following statement:
"The Sterling Equities 401(k) Plan and its participants were among the many victims of the Madoff fraud. The Sterling Equities Plan filed a claim with SIPC for losses sustained by the Plan and assisted each participant in the filing of an individual claim related to their 401(k) investment in Madoff as suggested by the SIPC trustee. We believe the participants who were defrauded by Madoff are entitled to the full protection of SIPC and are therefore eligible to be reimbursed for all their losses as is provided under the law."
Additional details here.