x Abu Dhabi, UAEFriday 28 July 2017

Madoff trustee charges banks

A host of big name banks are in the sights of the Madoff fund's court-appointed trustee.

Irving Picard

The Madoff fund's court-appointed trustee has filed civil suits seeking damages against financial institutions including HSBC, UBS, ABN AMRO, Fortis, Merrill Lynch, Citibank and Natixis. Mr Picard alleges that many of these banks should be considered responsible for "opening a spigot of new money into the Madoff feeder fund network".

Fairfield Greenwich Group

The largest of the "feeder funds", has filed bankruptcy proceedings that include complaints against investors who withdrew money from the Madoff fund before the funds collapsed to fairly redistribute funds during its liquidation. Mr Picard is also suing the Fairfield Sentry fund, which lawyers said could affect the success of their own clawback efforts.

Pasha and Julia Anwar

Two investors filed a case on behalf of all Madoff investors that has brought a class action lawsuit against all of the parties involved in the Madoff fraud, including not only the "feeder funds" but also their auditors PricewaterhouseCoopers. The case alleges that the Madoff scam was "facilitated by the reckless grossly negligent, and fraudulent conduct of others".