BVI-registered Madoff’s feeder funds sued for USD 255 million
The US trustee filed a complaint in the US Bankruptcy Court against Kingate Global Fund and Kingate Euro Fund, the feeder funds of Bernard Madoff. The two investment funds, registered in the British Virgin Islands, are sued for the return of 255 million dollars.
It was stated in the complaint by Irving Picard that Kingate subsidiaries received payments of 100 million dollars and 155 million dollars from Madoff in the weeks before Madoff’s Ponzi scheme collapsed last December. By words of the trustee, transfers should be distributed among those who suffered from Bernard Madoff’s scheme, because his remaining assets will not be enough to reimburse investors.
It was said in the complaint that the trustee must pursue recovery from customers who received preferences and/or payouts of fictitious profits to the detriment of other defrauded customers whose money was consumed by the Ponzi scheme.
It was reported in the Wall Street Journal that the two British Virgin Islands funds fed some 1.7 billion dollars of client’s assets into Madoff’s scheme.
Madoff has been pleaded guilty to fraud, and now is due to be sentenced to prison on June 16, 2009.
[...] funds Kingate Global Fund Limited and Kingate Euro Fund Limited, the funds which are sued as the feeder funds which were fully invested in Bernard L. Madoff Investment Securities LLC. Both BVI funds have [...]
Pingback by BVI Offshore Business: Grey Area » Joint Provisional Liquidators appointed to BVI funds linked to Madoff company — May 19, 2009 @ 9:29 pm
[...] In the last time, the hedge fund industry was influenced very much by a number of high-profile scandals, the most notable of which is scandal with the U.S. financier Bernard Madoff alleged of large-scale fraud and pyramid scheme. [...]
Pingback by BVI Offshore Business: Grey Area » Two managers of Weavering Capital fund arrested in a probe for its deals with BVI company — June 2, 2009 @ 10:47 pm