Madoff's 'diversions' detailed in suit

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A lawsuit against Bernard Madoff-related companies includes new information detailing how Bernard Madoff promoted a "diversion-filled office environment" and a culture of "sexual deviance" and drug use. The suit by plaintiffs lawyer Joseph Cotchett says Bernard L. Madoff Investment Securities hired some office toughs whose job was to "supply the office" with drugs, including cocaine. The employee was fired in 2003. According to the LA Times, "wild office parties sans spouses" were common and featured topless entertainers serving as waitresses, and sexual encounters on "their boss' sofa."

The issue for the plaintiffs is that their money was diverted for such activity. Madoff's lawyers suggest that the information was included to attract attention from People magazine. The suit was filed against the likes of JPMorgan Chase (JPM) and Bank of New York Mellon (BK), which handled some of Madoff accounts, and KPMG, who audited London operations.

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