Money | Bernard Madoff 2 Madoff Victims Sue SEC Regulators are responsible for victims' losses, suit claims By Nick McMaster Posted Oct 14, 2009 3:32 PM CDT Copied Besieged money manager Bernard Madoff arrives at Federal Court in New York, Wednesday, Jan. 14, 2009. (AP Photo/Stuart Ramson) Two investors who lost a combined $2.4 million to Bernie Madoff’s ponzi scheme have sued the SEC for negligence. The lawsuit argues that the commission should reimburse the plaintiffs for their losses because it failed in its duty to protect investors. Regulators had "countless opportunities" to catch Madoff "and botched all of them," it says. "Instead of watching the backs of ... investors, the SEC—through its negligence—was effectively watching Bernie Madoff's back," says the plaintiffs' attorney, reports CNNMoney. "Now it is time for the SEC to be held accountable and for the federal government to do what the law says it must do: compensate the victims for its negligence." Read These Next New Fox star, 23, misses first day after car troubles. Man accused of killing his daughters might be dead. White House rolls with Trump's 'daddy' nickname. Iran's supreme leader makes first public comments since ceasefire. Report an error