Madoff Receiver Sues Family-Linked Companies

Jul 30 2010 | 1:57pm ET

It’s been a busy week for Irving Picard. The court-appointed trustee charged with recouping assets for the victims of the Bernard Madoff Ponzi scheme first announced plans to sue as many as 1,000 investors with the arch-fraudster. Now, he’s taking aim—once again—at the imprisoned Madoff’s family.

Picard filed lawsuits against three Madoff family entities, a family fund, an oil and gas properties business and a trading business, seeking $30 million that the family had invested in them. The only problem, according to Picard, is that they invested in them with money that wasn’t theirs.

The lawsuit names Madoff Energy Holdings, Conglomerate Gas Resources, Madoff Technologies, Madoff Brokerage & Trading Technology, Primex Holding and Madoff Family, all of which, Picard said, were controlled by Madoff kin. He wants more than $22 million from the technology companies, more than $5 million from the energy companies and $3 million from the Madoff Family fund, which invests in a hedge fund and a biotechnology company.

The move follows a $199 million lawsuit Picard filed in October against Madoff’s brother, Peter, his sons, Andrew and Mark, and Peter’s daughter, Shana, all of whom worked for Bernard L. Madoff Investment Securities and treated it “as if it were the family piggy bank,” Picard alleged.

The latest lawsuit adds Madoff’s wife, Ruth, to the list of kin with whom Madoff was “quite generous” with other peoples’ money.

Madoff’s sons have denied the allegations.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note