The trustee appointed to recover funds for the victims of Bernard Madoff's $65 billion Ponzi scheme filed a flurry of clawback lawsuits seeking the return of nearly $800 million allegedly derived from investments by 'feeder funds' with Madoff. The lawsuits come on the eve of a one-year statute of limitations resulting from Picard's settlement with Fairfield Sentry ("Fairfield"), the largest so-called feeder fund to Madoff's scheme. The settlement, reached a year ago this Thursday, triggered the countdown of the one-year statute of limitations that applies to subsequent transfer cases. The lawsuits seek the return of funds transferred to investors who entrusted funds to Fairfield with the understanding that those funds would be invested with Madoff.
The targets of the latest clawback suits are mostly sophisticated financial institutions whose sizeable investments allowed Madoff's fraud to continue to pay fictitious returns to investors. The list of entities sued include:
- EFG Bank SA - $354.9 million
- Lombard Odier Darier Hentsch & Cie - $179.4 million
- ABN Amro Fund Services (Isle of Man) Nominees Ltd - $122.2 million
- Banque Degroof SA - $108.1 million
Along with the entities that invested with the feeder funds, Picard also continues to pursue claims against Fairfield's owners, including Walter Noel.