Citi Wants Madoff Case Dismissed

Jul 27 2011 | 11:51am ET

Citigroup yesterday rejected the court-appointed trustee in the Bernard Madoff case's allegations against it and asked a federal bankruptcy court to toss his lawsuit against the bank.

Irving Picard's $430 million suit against Citi "relies on the combination of widely known but innocuous information about" Bernard L. Madoff Investment Securities, "along with obscure economic discrepancies developed by the trustee and his experts over the past two years."

Picard has accused Citi of concluding more than a year-and-a-half before Madoff's arrest that a Madoff feeder fund, Fairfield Sentry, was posting returns that could not have been made by Madoff's strategy. Citi, in its filing yesterday, said that Picard cannot show that or that Citi had any fraudulent purposes in its actions.

A Citi hedge fund servicing unit has been separately sued by Picard.

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