The judge said in his decision that the SEC did not make "even a plausible case" that Jaffe had fraudulent intent when he introduced scores of investors to Madoff. Jaffe worked for many years from in the Boston office of a brokerage firm that had connections to Madoff, and directed investors from Massachusetts and Palm Beach, Fla., to the man now convicted of the largest swindle of all time.
"One who conducts normal business activities while ignorant that those acitivities are furthering a fraud is not liable for securities fraud," the judge wrote in the decision today.
The SEC said it was reviewing the order. The agency has 30 days to decide whether to appeal
The picture of Jaffe that appears with this post is a file photo from the Palm Beach Daily News.