Madoff Investors, Family Sued By Trustee Over Profits

On November 27, 2010, reported that Bernard Madoff’s investors, employees and family members including his wife were sued by a trustee seeking to recover as much as $69 million in fake profits they received before the con man’s firm collapsed.

New York attorney Irving Picard, appointed trustee by a federal bankruptcy court, yesterday sued people who allegedly invested with Madoff and withdrew more money than they contributed. Picard, with the approval of the Manhattan judge overseeing the liquidation of New York-based Bernard L. Madoff Investment Securities LLC, has filed such “clawback suits” in an attempt to obtain as much as $17.5 billion for victims of the largest Ponzi scheme in U.S. history.

Picard said in a statement late yesterday that those targeted in this latest round of lawsuits are family members and employees, or their relatives. In some of the complaints filed yesterday in U.S. Bankruptcy Court, he didn’t identify the defendants as having such connections to Madoff.

“The transfers received by defendant constitute non- existent profits supposedly earned in the account, but, in reality, they were other people’s money,” Picard said in a complaint seeking $2.8 million from David Washburn, a Madoff investor. Washburn didn’t return a phone call seeking comment.

via Madoff Investors, Family Sued By Trustee Over Profits.

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