Madoff Trustee Wants $2.1B From Feeder Fund Tremont

Mar 2 2011 | 9:59am ET

The court-appointed trustee in the Bernard Madoff case wants one of Madoff's largest feeder funds to pay up—to the tune of more than $2 billion.

Irving Picard is seeking at least $2.1 billion from Tremont Group Holdings, its parent companies Oppenheimer Acquisition Corp. and Massachusetts Mutual Life Insurance, and related funds and companies, according to his complaint against the fund of hedge funds, unsealed yesterday. Picard sued the Tremont entities in December, one of more than 100 lawsuits he filed prior to his deadline.

According to Picard, Tremont, like many others, ignored countless red flags about Madoff's operations, earning more than $180 million from 2002 through 2008 and as much as $240 million in total from Madoff's $65 billion Ponzi scheme. "Yet every cent of the billions they accepted in withdrawals and fees over the course of their relationship with Madoff was money stolen from other BLMIS customers."

Tremont was the second-largest Madoff feeder fund and has styled itself among the fraudster's biggest victims; its funds lost more than $3 billion. Now, it stands among the individuals and firms with the largest claims against them.

Tremont said that it "acted capably and appropriately" with regard to its relationship with Madoff. The firm last month settled a lawsuit filed by its investors for $100 million.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR