The time-honored “I know nothing” defense has less credence for officers and directors of corporations. That is at least one message from the settlement announced Monday between Irving H. Picard, the trustee overseeing recovery for the victims of the Bernard L. Madoff fraud, and the Mets owners Fred Wilpon and Saul Katz. Before the settlement, Mr. Picard was pursuing a suit accusing the two of being willfully blind to signs that Mr. Madoff was running a scam. Mr. Wilpon and Mr. Katz had argued that they “knew nothing” of Mr. Madoff’s fraud even though they were close friends of Mr. Madoff’s before he pleaded guilty to the Ponzi scheme. Read New York Times report here.
