Madoff's workplace was rife with cocaine, sex

A new lawsuit alleges that convicted swindler Bernie Madoff financed a cocaine-fueled work environment and a "culture of sexual deviance," and he diverted money to his London, England, office when he believed federal authorities were closing in at home.
A new lawsuit alleges Bernie Madoff financed a sex-and-drugs workplace with investors' money.

A new lawsuit alleges Bernie Madoff financed a sex-and-drugs workplace with investors' money.

The lawsuit, filed Tuesday in New York's State Supreme Court, was brought on behalf of former investors and seeks unspecified punitive damages and compensation.

Beyond that, it offers a look at what the plaintiffs' attorneys say was once Madoff's multimillion-dollar empire and what is now his world in a federal prison in North Carolina.

Among the allegations in the 264-page lawsuit are that during the mid-1970s, Madoff began sending employees to buy drugs for company use.

The complaint alleges that some employees and investors were aware of the drug purchases, and that BMIS [Bernard Madoff Investment Services] was known by insiders as the "North Pole" in reference to the excessive amount of cocaine use in the work place.

Attorneys Joseph Cochett and Nancy Fineman filed the complaint based on an investigation, including a four-hour interview with Madoff in prison in July, that they conducted for former investors. They also allege that major financial institutions, including KPMG, the Bank of New York and JP Morgan Chase, were aware that Madoff was transferring stolen funds to his London office for personal purchases.

According to the complaint, Madoff transferred funds to London to buy extravagant personal items...