Madoff trustee demands $2 billion from UBS

The trustee seeking money for victims of Bernard Madoff’s fraud has filed an amended $2 billion (SFr1.59 billion) lawsuit, adding new allegations against UBS.

This content was published on August 18, 2011 minutes and agencies

Irving Picard on Wednesday accused the Swiss bank of misleading regulators in the United States and Luxembourg about its ties to Madoff, while helping feeder funds funnel their clients’ money into his Ponzi scheme.

The Ponzi scheme being run at Bernard L. Madoff Investment Securities was uncovered in December 2008. Madoff, 73, is now serving a 150-year prison sentence.

Picard’s lawsuit against UBS, known as the Luxalpha case, accuses the bank of aiding the fraud by sponsoring foreign feeder funds, including Luxalpha SICAV, lending them “an aura of legitimacy”.

UBS spokesman Peter McKillop responded in a statement: “Our position remains unchanged; the trustee’s allegations are completely unfounded and without merit. UBS was not aware of any wrongdoing by Mr Madoff and will take all appropriate steps to demonstrate that the allegations are false and unfounded.”

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at

Share this story

Change your password

Do you really want to delete your profile?