Madoff Trustee Sues Citi Hedge Fund Services

Jun 29 2011 | 11:05am ET

The trustee in the Bernard Madoff Ponzi scheme has sued Citigroup's hedge fund administrator as part of his case against one of the fraudster's feeder funds.

Irving Picard said yesterday that he had served Citi Hedge Fund Services of Bermuda with a summons. The administrator, which Citi purchased in 2007, serviced the Kingate Global and Kingate Euro funds from 2000 through 2007, earning it more than $4.2 million.

But CHFS used Madoff's bogus numbers and trade confirmations that were "facially impossible" to value the feeder funds, Picard said. The trustee is seeking $975 million from the Kingate funds, and has also sued the funds' custodian, HSBC Bank Bermuda.

The Kingate funds are being liquidated in the British Virgin Islands.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...