Barclays sued by Madoff trustee

Reuters News
Posted: Sep 02, 2011 10:44 AM
Barclays sued by Madoff trustee

NEW YORK (Reuters) - Barclays Plc was sued for $67.4 million by the trustee seeking money for victims of Bernard Madoff's Ponzi scheme.

The lawsuit is one of six filed on Thursday in the U.S. Bankruptcy Court in Manhattan by the trustee Irving Picard, seeking about $219 million of transfers related to Fairfield Sentry Ltd.

That so-called "feeder fund" was run by Fairfield Greenwich Group, the largest feeder of cash to Madoff's firm, Bernard L. Madoff Investment Securities LLC.

A Barclays spokeswoman declined to comment.

The trustee on Thursday also filed similar, smaller lawsuits against Sumitomo Mitsui Trust Holdings Inc, Cathay Life Insurance Co, Korea Exchange Bank, Banque Privee Espirito Santo SA and Banca Carige SpA.

In May, Picard reached a settlement with liquidators of Fairfield Sentry and other Fairfield funds, under which he was assigned the right to pursue most of the liquidators' claims.

The trustee has filed more than 1,050 lawsuits on behalf of Madoff victims, and is seeking more than $94 billion.

Madoff, 73, is serving a 150-year prison sentence.

The case is Picard v. Barclays Bank (Suisse) SA et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-ap-02569.

(Reporting by Jonathan Stempel)