Trustee: Two More Funds Ignore Madoff Lawsuits

Aug 24 2009 | 11:30am ET

Irving Picard, the court-appointed trustee in the Bernard Madoff fraud case, took his battle to recoup money for Madoff’s victims back to court last week.

Picard is seeking default notices against a pair of offshore hedge funds. He told the U.S. Bankruptcy Court in Manhattan that the Primeo Fund, based in the Cayman Islands, and the Alpha Prime Fund, based in Bermuda, had failed to respond to his lawsuits. Picard is seeking some $230.7 million from the two funds.

Ignoring Picard’s clawback lawsuits is becoming something of an epidemic of late. Two other Madoff feeder funds, Harley International and Vizcaya Partners, have also failed to respond to his lawsuit, the trustee said last month. Picard is seeking $1.07 billion from Harley and $150 million from Vizcaya.

The lawsuits, which seek to recoup the money both funds withdrew prior to Madoff’s arrest in December, also name HSBC Holdings, which served as custodian for both Alpha Prime and Primeo. Picard is not seeking a default notice against the British bank.

Madoff pleaded guilty in March to running a $65 billion Ponzi scheme, and was sentenced to 150 years in prison.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...