The case of Bernard Madoff, the notorious Wall Street manager who is now sued by many investment funds (including those registered in BVI) whose shareholders invested money in his companies, continues to grow. The special US trustee who tries to find all the assets linked to the accused manager informed about his plans to hire lawyers in Ireland, to get them involved in lawsuits for more than $1 billion of investments which flowed to Madoff.
Last month, three investment funds – Thema International Fund Plc, AA (Alternative Advantage) Plc and Fortis Prime Fund Solutions – filed separate suits in Dublin’s High Court. Thema and AA sued HSBC Institutional Trust Services Limited of Ireland, while Fortis sued HSBC Securities Services of Ireland and British Virgin Islands-registered firm Defender Limited. The investors are willing to get cash recovery of $1.2 billion.
It is stated in the court filing that the Irish cases of HSBC and BVI-based Defender are related to the money that the investment funds – part of a large group of so-called feeder funds – consider HSBC is holding that arose out of Madoff’s business.
It is noteworthy that one of these investment companies, Thema International, has been linked in an unrelated federal lawsuit in Manhattan court to Bank Medici AG, whose clients reportedly lost billions of dollars in the Madoff affair.
It is unclear how much money involved in Irish lawsuits actually remains in the accounts. The trustee disclosed that he had accounted for more than US$943 million in the accounts of Bernard Madoff Investment Securities Llc. He hopes to begin paying recoveries to customers by July 2009.