Bloomberg News

Madoff Trustee Sues ABN Amro, Nomura to Recoup $47 Million

October 06, 2011

(Updates with RBS spokesman’s comment in the seventh paragraph.)

Oct. 6 (Bloomberg) -- Irving H. Picard, the trustee liquidating Bernard L. Madoff’s money management firm, sued Nomura Holdings Inc.’s Nomura International and ABN Amro Group NV’s ABN Amro Bank to recover a total of $46.9 million.

The companies invested with Madoff, who ran the biggest Ponzi scheme, through feeder funds, according to the lawsuits filed today in bankruptcy court in Manhattan. Picard seeks to recover $25.5 million transferred to Amsterdam-based ABN Amro and $21.4 million transferred to Tokyo-based Nomura.

“The subsequent transfers were derived from investments with BLMIS,” Picard said in the suits, referring to Bernard L. Madoff Investment Securities LLC.

Picard also filed lawsuits seeking $110 million from KBC Investments Ltd. and $50.1 million from Caceis Bank Luxembourg.

The trustee alleges the money was invested in the Madoff firm and taken out through feeder funds such as Fairfield Sentry Ltd. and Harley International (Cayman) Ltd.

Madoff is serving a 150-year prison sentence for running the biggest Ponzi scheme in history.

Mike Geller, a spokesman for Royal Bank of Scotland, which now owns ABN Amro, declined to comment on the lawsuit. Suzanne Hallberg, a spokeswoman for Nomura, declined to comment.

A call to a representative of Caceis Investor Services in New York wasn’t immediately returned. A call after business hours to Viviane Huybrecht, director of communications for KBC in Brussels, wasn’t immediately returned.

The cases are Picard v. ABN Amro Bank NV, 11-ap-2760, and Picard v. Nomura International Plc, 11-ap-2759, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Mary Romano, John Pickering

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: John Pickering at jpickering@bloomberg.net.


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