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 - 11:59 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.”

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