New York (HedgeCo.net) – A Trustee for the liquidation of Bernard L. Madoff’s Investment Securities, Irving H. Picard, has filed a complaint in NY Bankruptcy Court alleging 24 counts of financial fraud and misconduct against HSBC.
“All of the defendants are financial institutions, hedge funds, investment advisers, managers, and promoters whose financial sophistication gave them insight into Madoff’s fraud long before his confession and arrest in 2008,” said David J. Sheehan, counsel to the Trustee and a partner at Baker & Hostetler LLP, the court appointed counsel for Picard. “Each possessed a strong financial incentive to participate in, perpetuate, and stay silent about Madoff’s fraudulent scheme.”
“The Defendants engineered a labyrinth of hedge funds, management companies, and service providers that, to unsuspecting outsiders, seemed to compose a formidable system of checks and balances,” Oren Warshavsky, a partner at Baker & Hostetler LLP, said, “At the core of this architecture was a remarkably small group of individuals and the bank on which they all relied to help project an air of credibility: HSBC.”
Other Defendants named in the filing include the management companies and service providers of those feeder funds, as well as certain of their directors and managers, namely Sonja Kohn, Genevalor, Mario Benbassat and his sons, Albert and Stephane, as well as Bank Medici and Unicredit, who together with other defendants helped fuel and extend Madoff’s Ponzi scheme across international borders.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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