Bloomberg News

Citigroup Sued by Fairfield Sentry Liquidators Over Madoff

October 14, 2011

(Updates with Citigroup comment in fourth paragraph.)

Oct. 14 (Bloomberg) -- A Citigroup Inc. unit was sued by liquidators for Fairfield Sentry Ltd. who are seeking to take back money withdrawn from the largest feeder fund for Bernard L. Madoff Investment Securities Inc.

Citigroup Global Markets Ltd. received $130 million in so- called redemption payments from Sentry from Oct. 14, 2005, to Nov. 19, 2008, according to a complaint filed yesterday by the liquidators in U.S. Bankruptcy Court in New York.

The liquidators accuse the Citigroup unit and unidentified investors in the Sentry funds of unjust enrichment and seek return of the payments plus interest.

“We believe this suit is without merit,” Danielle Romero- Apsilos, a spokeswoman for New York-based Citigroup, said in an e-mailed statement.

The liquidators filed similar complaints yesterday against Fullerton Capital Pte Ltd. and Bankmed Suisse SA.

The case is In re Fairfield Sentry Ltd., 10-13164, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--With assistance from Linda Sandler in New York. Editors: Michael Hytha, Theo Mullen

To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net

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


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