Jan. 2 (Bloomberg) -- The trustee in charge of Bernard Madoff’s investment firm was sued for the return of $10 million deposited for investment with the company, which collapsed after its founder was charged with securities fraud.

Rosenman Family LLC yesterday sued Irving Picard, the trustee appointed to supervise the unwinding of Bernard L. Madoff Investment Securities LLC, seeking a ruling that Picard has no claim to the funds.

Martin Rosenman, managing member of Rosenman Family LLC, spoke by phone with Madoff Dec. 3 about investing and Madoff told him the fund would be closed until Jan. 1, though he may wire the money earlier, according to the complaint filed in U.S. Bankruptcy Court in Manhattan</a>. Rosenman, also the president of Bronx, New York-based Stuyvesant Fuel Service Corp., placed $10 million in a Madoff account at JPMorgan Chase Bank on Dec. 5, according to the filing.

Madoff’s firm “never obtained legal or equitable title to the money Family deposited in the Chase account” and the money “remains there to this day,” according to the lawsuit.

Picard said the money is property of the firm’s estate, according to court papers.

George Stamboulidis, an attorney at Baker & Hostetler which represents Picard, didn’t immediately return a call seeking comment.

Rosenman Family LLC is seeking an order from U.S. Bankruptcy Judge Burton Lifland requiring JPMorgan to turn over the funds.

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).

To contact the reporter on this story: Christopher Scinta in New York bankruptcy court at cscinta@bloomberg.net and; David Glovin in New York federal court at dglovin@bloomberg.net.

Last Updated: January 2, 2009 11:13 EST