Madoff's market-making business revived
The market-making business of Bernard Madoff is resurfacing under the leadership of former executives from TD Waterhouse Group Inc. and Fidelity Investments. Surge Trading Inc., led by former TD Waterhouse chief executive Frank Petrilli, will seek regulatory approval to enter the business of pairing buyers and sellers of stocks on U.S. exchanges. The New York brokerage completed the purchase of assets from Madoff Investment Securities Llc on Wednesday and has rehired "key personnel" responsible for the operations, which weren't linked to Madoff's Ponzi scheme. "We are looking forward to quickly beginning the business of trading on behalf of our clients, growing our service offerings and becoming an industry-leading business," Petrilli, who ran TD Waterhouse for a decade, said in a statement yesterday. Boston-based Castor Pollux Securities Inc., which changed its name to Surge, outbid two other firms to win Madoff's operation, agreeing to pay as much as $25.5 million. Madoff pleaded guilty on March 12 to defrauding investors by using money from new ones to pay off old ones in a $65-billion Ponzi scheme. He is to be sentenced on June 29.
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