The U.S. Department of Labor sued three investment companies that fed investors' funds to Bernie Madoff:   Ivy Asset Mgmt  ....  Beacon Assoc. Mgmt  ....  J.P. Jeanneret Assoc.  Each breached its fiduciary duties to union-sponsored and single-employer benefit plans by steering investments to Bernie, the lawsuit claims.  The suit is related to a number of pending lawsuits that have already been filed against the 3 funds.

"The defendant fiduciaries caused the plans to invest with Madoff over many years, and imprudently failed to cause the plans to divest their Madoff investments, even though the defendant fiduciaries had strong indications, suspicions and red flags of Madoff's conduct."

    Ivy, now part of BNY Mellon Asset Management, began investing with Bernie Madoff circa 1987.  The firm responded to the suit by saying that client moneys were invested with Bernie Madoff on a "nondiscretionary advisory" basis, adding that: 

"Ivy takes its responsibilities to its clients very seriously. ...  Ivy Ivy provided information to professional investment advisers, who in turn chose how to use that information, and how and where to invest their clients' assets." "We believe that Ivy fulfilled its duties to its clients and Ivy intends to vigorously defend itself against this lawsuit."

    Beacon and J.P. Jeanneret were introduced to Bernie Madoff by Ivy and began recommending investments with him in the early 1990s.  Over the course of their relationships, Ivy reportedly received nearly half of the fees paid to J.P. Jeanneret and Beacon by the benefit plans related to their Madoff investments.   [WSJ, 10/22]