Dichter-Mad Family Partners, LLP v. United States

ORDER GRANTING DEFENDANTS’ MOTIONS TO DISMISS FOR LACK OF JURISDICTION [6, 7]

I. INTRODUCTION

A. BACKGROUND

Plaintiffs were investors in Bernard Ma-doffs Ponzi scheme. Plaintiffs are bringing a Federal Tort Claims Act (“FTCA”) action against the Securities and Exchange Commission (“SEC”) and the United States (“Government” or “Defendant”). Plaintiffs assert that the SEC “owes a duty of reasonable due care to all members of the general public including all investors in U.S. financial markets who are foresee-ably endangered by its conduct.” (Compl. ¶ 168.) Plaintiffs also assert that the SEC’s negligent acts and omissions “caused Madoffs scheme to continue, perpetuate, and expand,” and that the SEC “fail[ed] to terminate Madoffs Ponzi scheme despite its multiple opportunities to do so.” (Compl. ¶ 2; see also Compl. ¶ 164.) Plaintiffs further assert that “Plaintiffs here were among those victimized by Madoff. Plaintiffs made their investments in reliance on Madoffs reputation, clean regulatory record, and the SEC’s implied stamp of approval.” (Compl. ¶ 8.) Because of the SEC’s alleged negligence, Plaintiffs seek to recover their losses from their investments with…