Bloomberg News

Koch Industries Sued by Madoff Trustee for $21.5 Million

February 12, 2012

(Updates with complaint in second paragraph.)

Feb. 10 (Bloomberg) -- Koch Industries Inc., the company run by billionaire brothers Charles and David Koch, was sued for $21.5 million by the trustee liquidating Bernard Madoff’s firm.

The trustee, Irving Picard, sued to recover money received from a feeder fund that invested with Madoff, according to the complaint filed yesterday in U.S. Bankruptcy Court in Manhattan. Madoff is serving 150 years in federal prison for running the biggest Ponzi scheme in U.S. history.

One of the largest closely held companies in the world, Koch Industries has businesses in chemicals, refining, consumer products and commodities trading. Charles Koch is chairman and chief executive officer of the company, and David Koch is an executive vice president.

Melissa Cohlmia, a spokeswoman for the Wichita, Kansas- based company, didn’t respond to an e-mail seeking comment on the suit.

The case is Picard v. Koch Industries Inc., 12-01047, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Andrew Dunn, Charles Carter

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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