Mass. regulator moves on Madoff feeder fund

Massachusetts Secretary of State William Galvin’s securities division asked the state’s hearings officer yesterday to move on his call to revoke the license of a brokerage firm which served as a feeder fund for the investment firm of accused swindler Bernard Madoff.

If granted, the default judgment would revoke the registration of brokerage Cohmad Securities Corp. and put it out of business in Massachusetts.

The action would also require Cohmad to disclose the names of all the Massachusetts investors the firm or its agents referred to New York-based Bernard L. Madoff Investment Services LLC, as well as any fees earned in connection with the referrals, Mr. Galvin’s office said.

The secretary of state began investigating the firm on behalf of several Massachusetts residents who said they were introduced to Mr. Madoff by representatives of Cohmad Securities. Cohmad is a New York-based brokerage firm partly owned by Mr. Madoff.

Mr. Galvin filed a civil complaint last month against Cohmad that is currently being heard by a state hearings officer.

On Dec. 11, Mr. Madoff was arrested and charged with conducting an alleged $50 billion Ponzi scheme.