Bloomberg News

Madoff Trustee Sues Cathay Life Insurance for $41.7 Million

September 01, 2011

(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

To contact the reporter on this story: Thom Weidlich in Brooklyn, New York, federal court at tweidlich@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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