(Updates with filing excerpt in third paragraph.)
Sept. 1 (Bloomberg) -- Irving H. Picard, the trustee liquidating Bernard L. Madoff’s money management firm, sued two units of Cathay Financial Holding Co. for $41.7 million.
Picard filed the suit today in U.S. bankruptcy court in New York. The two units of Taiwan’s largest listed financial- services company invested with Madoff through a Fairfield Greenwich Group fund, Fairfield Sentry, according to the filing. Fairfield Sentry transferred about $24.5 million to Cathay Life Insurance and about $17.2 million to Cathay United Bank, according to Picard.
“The Cathay defendants knowingly received transfers of customer property from” Bernard L. Madoff Investment Securities LLC, Picard wrote.
Madoff is serving a 150-year prison sentence for running the biggest Ponzi scheme in history.
Alan Lee, a Cathay Financial spokesperson, couldn’t immediately be reached for comment after Taipei business hours.
The case is Picard v. Cathay Life Insurance Co., 11-ap- 2568, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: David E. Rovella, Charles Carter
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