April 14 (Bloomberg) -- Madoff Securities International Ltd., the United Kingdom-based unit of Bernard Madoff’s money management business, sued Bernard’s brother Peter for “unjust enrichment” after earlier filing for bankruptcy in Florida.

Madoff International also filed for court protection to recover a $200,000 Aston Martin car alleged to have been bought for Peter Madoff.

Madoff International listed more than $1 billion in debt and as much as $500 million in assets, according to court papers filed today. The company filed under Chapter 15 of the federal bankruptcy code, which is designed to block U.S. lawsuits against foreign companies reorganizing overseas that have U.S. operations.

Irving Picard, the trustee charged with unraveling Bernard L. Madoff Investment Securities LLC, gained power of attorney over Madoff’s London business in a March 23 order by a federal judge. The U.K. unit was owned almost exclusively by Madoff himself and served as his proprietary trading unit, Picard said in a Feb. 19 filing with a London court.

“The ability to obtain documents and testimony from Peter Madoff and other persons with information will be essential in discovering the disposition of assets believed to have been fraudulently purchased” with Madoff International funds, said Tina Talarchyk, an attorney for the liquidators, in court papers.

Vintage Car

The liquidators claim that in March and May 2008, Madoff International wire-transferred 135,000 pounds ($201,399) to Aston Martin company to buy a car for Peter Madoff, court papers show. The vehicle was delivered to Peter, 63, at his residence in Palm Beach, Florida. It’s a 1964 Aston Martin DB2/4, according to the court papers.

“The circumstances of the transactions are such that it would be inequitable and unjust for the defendant to retain the benefit of the wire transfers and the purchase and receipt of the vehicle without providing adequate consideration, which he has not done,” the liquidators said in papers filed today.

Peter is also alleged to have breached his fiduciary duties by receiving the wire transfer and the vehicle without “legitimate” reimbursement to Madoff International. Peter was a director, manager, and shareholder of Madoff International, according to court papers.

Restraining Order

The liquidators are asking the court to issue a restraining order barring Peter and any other person from removing the automobile from the jurisdiction of the West Palm Beach court.

Madoff International said it isn’t involved in any pending litigation in the U.S., court papers show. The company’s liquidators said they’re seeking “provisional relief” against Peter Madoff, as well as a temporary restraining order.

Bernard Madoff, 70, pleaded guilty last month to 11 counts including fraud and money laundering for directing the largest Ponzi scheme ever, bilking investors of about $65 billion.

The assets and bank accounts of Madoff International “were used by Mr. Madoff for a variety of purposes, including the purchase of valuable assets such as luxury yachts, automobiles, and furnishings for himself and members of his family,” the liquidators said in court papers.

Stephen John Akers, Mark Richard Byers and Andrew Laurence Hosking were appointed on Dec. 19 by the High Court of Justice in England as the Joint Provisional Liquidators of Madoff International. The company operated from an office in the Mayfair district of London, court papers show.

Talarchyk, the attorney at Squire Sanders & Dempsey LLP who filed the Chapter 15 petition on behalf of the liquidators, didn’t immediately return a phone call seeking comment.

The case is In re Madoff Securities International Ltd., 09- 16751, U.S. Bankruptcy Court, Southern District of Florida (West Palm Beach).

To contact the reporter on this story: Michael Bathon in New York at mbathon@bloomberg.net; Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net

Last Updated: April 14, 2009 18:07 EDT