Madoff Trustee Sues Credit Suisse to Recover $375 Million

Credit Suisse Group AG (CSGN) was sued by the trustee liquidating Bernard Madoff’s former investment firm to recover $375 million in redemptions that were taken out of con man’s company before his Ponzi scheme was exposed.

Trustee Irving Picard filed an adversary complaint yesterday in U.S. Bankruptcy Court in Manhattan for the return of funds transferred to the Swiss bank by investors in Fairfield Sentry Ltd. and Kingate Global Fund Ltd. The two so-called feeder funds, which invested almost all their assets with Madoff, are now in liquidation themselves, Picard said.

Madoff, who pleaded guilty to fraud charges, is serving 150 years in prison for the largest Ponzi scheme in U.S. history. Investors lost about $19 billion in principal, Picard has said. Picard has filed similar lawsuits to recover investments taken out of Madoff’s firm.

“While we are still reviewing the complaint, there is no allegation that CS did anything wrong,” Victoria Harmon, a spokeswoman for Zurich-based Credit Suisse, said in an e-mail. “This is simply another of the numerous claims the trustee has filed in an attempt to clawback further funds.” ‬

The case is Picard v. Credit Suisse, 11-02925, U.S. Bankruptcy Court, Southern District of New York (Manhattan.)

To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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