Philadelphia Couple Sues Estate Planner After Assets Invested in Madoff Feeder Funds

In 2004, Sarah and Daniel Keating III, a wealthy Philadelphia couple, sought asset protection advice from the law firm Duane Morris. The couple hired Stanley Joffe and Stanley Barg to work on their international estate planning and ancillary tax matters. The Keatings claim they were assured that their assets would be allocated to conservative investments. In 2008, however, allegedly close to half of the couple’s assets were invested in risky hedge funds and equity investments that included feeder funds of Bernard L. Madoff Investment Securities.

In June of this year the Keatings sued Duane Morris, Barg, and Joffe alleging breach of contract, quantum meruit, and professional liability. The couple claims they suffered substantial losses as a result of the defendants’ actions.

The attorney for the defendants stated that he “strongly disagrees with the allegations in the complaint,” though he refrained from commenting on specifics of the ongoing suit.

See Couple Sues Estate Planner After Investments Wind Up in Madoff Feeder Fund, Elder Law Answers, Aug. 1, 2011.