The liquidator for Bernard Madoff’s business told a judge he discovered two investment funds in Ireland that directed money to the fraud and received more than $380 million in fake profit.
Trustee Irving Picard, hired to track down assets and repay victims, issued several subpoenas in connection with the Irish probe, he said last week in a report in U.S. Bankruptcy Court in New York. He didn’t name the funds. “The trustee is continuing to investigate these funds and related entities,” Picard said in the filing. The liquidator has filed at least 14 lawsuits against so-called feeder funds and other Madoff beneficiaries seeking the return of almost $15 billion in fake profit from the fraud. Picard is investigating or is in settlement talks with dozens of funds that directed investor money to Madoff from the British Virgin Islands, the Cayman Islands, St. Lucia, Bermuda, Gibraltar, Luxembourg, Switzerland and Panama. Picard hired lawyers in some of those countries to represent him, he said.
Ireland’s financial regulator in January said two funds based in the country had exposure to Madoff’s scam. That same month, Dublin-based Thema International Fund Plc sued an HSBC Holdings Plc unit, which handled the fund’s money, saying the bank failed in its duties as custodian.
Anyway HSBC in October lost its bid to delay a lawsuit in Dublin by investors who sued over Madoff losses. About 50 claims have been filed in Ireland over Thema’s Madoff losses. Picard hasn’t identified Thema as one of the funds that had fake profit from the fraud. Picard, of the firm Baker & Hostetler LLP in New York, said in the same report that he’s in settlement talks with at least one feeder fund he already sued, Cayman Islands-based Primeo Fund, which allegedly had fake profit from the fraud of $144.9 million. The fund is associated with UniCredit SpA.
Madoff, 71, pleaded guilty and is serving a 150-year sentence for running the world’s biggest Ponzi scheme out of New York-based Bernard L. Madoff Investment Securities LLC. The case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, 08-01789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).