Bloomberg News

Madoff Trustee Sues Credit Suisse to Recover $375 Million

December 12, 2011

(Updates with court filing in second paragraph.)

Dec. 12 (Bloomberg) -- Credit Suisse Group AG was sued by the trustee liquidating Bernard Madoff’s former investment firm to recover $375 million in redemptions that were taken out of con man’s company before his Ponzi scheme was exposed.

Trustee Irving Picard filed an adversary complaint today in U.S. Bankruptcy Court in Manhattan for a return of funds that were transferred to the Swiss bank by investors in Fairfield Sentry Ltd. and Kingate Global Fund Ltd. The two so-called feeder funds, which invested almost all their assets with Madoff, are now in liquidation themselves, Picard said.

Madoff, who pleaded guilty to fraud charges, is serving 150 years in prison for the largest Ponzi scheme in U.S. history. Investors lost about $19 billion in principal, Picard has said. Picard has filed similar lawsuits to recover investments taken out of Madoff’s firm.

Representatives of Credit Suisse in New York didn’t immediately return a call seeking comment after regular business hours on the lawsuit.

The case is Picard v. Credit Suisse, 11-02925, U.S. Bankruptcy Court, Southern District of New York (Manhattan.)

--Editor: Michael Hytha

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


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus