Bloomberg News

Madoff Trustee Picard Sues EFG Bank SA for $355 Million

June 06, 2012

The liquidator of Bernard Madoff’s brokerage filed at least six lawsuits today seeking almost $840 million in transfers allegedly received from feeder funds that invested with the convicted financier.

The trustee, Irving Picard, who has suffered defeats in U.S. District Court as he litigates to raise money for Madoff victims, sued EFG Bank SA for almost $355 million in U.S. Bankruptcy Court in Manhattan. He intends to recover “stolen” property taken from feeder funds Fairfield Sentry Ltd. and Kingate Global Fund Ltd., he said in the filing.

Picard has already sued the feeder funds for the money they transferred to other investors. Under bankruptcy law, he can’t usually take back the same money twice.

EFG’s media relations department in Zurich didn’t immediately respond to an e-mail seeking comment on the suit after regular business hours.

Federal judges Jed Rakoff and Colleen McMahon in Manhattan have knocked out about $90 billion of Picard’s claims against banks, investment funds and individuals. Rakoff is reviewing more than 600 additional lawsuits by Picard.

Also today, Picard sued Banque Degroof SA for $108 million in transfers of money that allegedly originated with feeder funds. He demanded $179 million from Lombard Odier Darier Hentsch & Cie, almost $106 million from Royal Bank of Canada, $81 million from Banque Internationale a Luxembourg SA and less than $10 million from Banque Cantonale Vaudoise.

Picard and his law firm have charged about $273 million for Madoff estate work since the confidence man’s 2008 arrest, while repaying investors about $333 million. Madoff is serving a prison sentence of 150 years.

The cases are Picard v. EFG Bank SA, 12-01690, and Picard v. Banque Degroof SA, 12-01691, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.

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


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