Damages are being sought from investment managers Meridian Diversified Fund Management and J P Jeanneret Associates for placing client money with convicted conman Bernard Madoff, according to Bloomberg.

Meridian Diversified is alleged to have placed up to 8 per cent of its clients’ money with Madoff, according to a complaint filed in NewYork. Jeanneret was an advisor to the Income-Plus Investment Fund, which also invested with Madoff.

The law firm bringing that case, Lowey Dannenberg Cohen & Hart, is reported as saying: “Unbeknownst to Income-Plus investors, defendants failed to perform the necessary due diligence that they were being compensated to perform as investment advisors.”