Picard Goes Trans-Atlantic in Pursuit of Madoff Funds

Dec 8 2010 | 2:08pm ET

Irving Picard has crossed the pond in his fight to reclaim billions on behalf of Bernard Madoff’s Ponzi scheme victims.

Picard, the trustee overseeing the bankruptcy of Madoff's firm, is pursuing the directors of Madoff’s London operation—Madoff Securities International Ltd. (MSIL)—in the UK’s High Court of Justice Commercial Court. The joint complaint, filed in conjunction with a UK liquidator, names a number of individuals and entities connected to MSIL, including Madoff’s brother Peter and his sons, Mark and Andrew. Also named is the Austrian banker, Sonja Kohn.

The trustee is asking for $80 million, charging that the MSIL directors and officers with breach of duty for approving fraudulent payments, including payments for a yacht, a luxury car and a home in the south of France enjoyed by Madoff and his family.

The lawsuit also charges that over $27 million was channeled through MSIL to Kohn.

The trustee says his investigations show that from the time MSIL was incorporated in 1983 until Madoff’s arrest in December 2008, at least $600 million was paid into MSIL from Bernard L. Madoff Investment Securities (BLMIS) and other sources controlled by Madoff. Payments were made from MSIL to Madoff, his family, Kohn and other parties. More than $310 million was transferred from BLMIS to MSIL then back to BLMIS with the transactions falsely recorded as trading commissions from London.

The lawsuit is the latest in a flurry of actions filed by Picard as the December 11 deadline for filing “clawback” suits related to the Madoff scheme (and the second anniversary of Madoff’s arrest) approaches.

Picard has recovered about $2 billion to date of the estimated $20 billion lost by victims of Madoff’s fraud.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?