Cayman Islands

Prev    Next Madoff trustee says Cayman and Bermuda funds ignored lawsuits Published on Friday, August 21, 2009 Email To Friend    Print Version By Erik Larson  NEW YORK, USA (Bloomberg) -- The trustee liquidating Bernard Madoff’s business told a judge that two Cayman Islands and Bermuda hedge-fund firms accused of profiting from the fraud are ignoring his lawsuits seeking a total of $230.7 million in damages. Trustee Irving Picard on Wednesday asked the US Bankruptcy Court in Manhattan to file default notices against the Cayman Islands-based Primeo Fund and Bermuda-based Alpha Prime Fund Ltd., court papers show. Two offshore firms sued earlier for a total of $1.2 billion also have ignored Picard’s lawsuits. The “clawback” lawsuits against Primeo and Alpha, filed last month, also name the British bank HSBC Holdings Plc, which acted as beneficiary bank and custodian for the funds’ Madoff investments. The default doesn’t apply to HSBC, which has said it has “good defenses” to the trustee’s allegations. Madoff, 71, pleaded guilty in March and was sentenced on June 29 to 150 years in prison for using money from new clients to pay earlier investors in a $65 billion fraud. Picard said last month that $1.08 billion had been recovered to help repay victims. Proceeds from clawback suits will be added to that amount. Chris Sharpe, of the financial advisory firm Zolfo Cooper, which is liquidating Primeo in a Cayman Islands court, declined to comment. The fund entered voluntary liquidation in January. Cayman Islands-based Harley International Ltd., which allegedly took $1.07 billion in fake profit from Madoff’s firm, and British Virgin Islands-based Vizcaya Partners Ltd., accused of taking $150 million, have ignored Picard’s clawback suits.   Reads : 1225   Prev    Next

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