Tuesday, 29 July 2014
Last updated 3 hours ago
Jul 21 2010 | 12:13pm ET
The court-appointed trustee in the Bernard Madoff Ponzi scheme case has sued 19 people and 34 affiliates with ties to Madoff feeder fund Fairfield Greenwich Group, including the hedge fund firm’s three founders.
Irving Picard said the Fairfield Greenwich employees and entities “engaged in a systematic, purposeful enterprise with Madoff to maintain and profit from a fraud and wrongly enrich themselves.” The receiver is seeking more than $3.6 billion in the lawsuit, filed yesterday in Manhattan bankruptcy court, roughly half of the $7.5 billion Fairfield Greenwich investors lost in the Madoff fraud.
“The defendants did not properly, independently and reasonably perform due diligence into the many red flags strongly indicating Madoff was a fraud,” the complaint alleges. “The defendants did exactly the opposite.”
Picard first sued three Fairfield Greenwich entities last year. Among the new defendants are Walter Noel, Andres Piedrahita and Jeffrey Tucker, the firm’s three founding partners. The defendants denied the new allegations.
“The Madoff trustee’s amended complaint is replete with false, misleading and rehashed accusations,” the firm said in a statement.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…