Madoff trustee sues another feeder fund for $1 billion. Picard seems to be working his way up the food chain, from small to large. Hmm, who lost more than a billion dollars with Bernie? Oh, yes.
In the latest of a series of aggressive actions against the funds that helped to prop up Bernard Madoff’s Ponzi scheme, the trustee of Mr. Madoff’s investment firm sued a hedge-fund investor for more than $1 billion, claiming the fund “should have known” about the fraud.
Trustee Irving Picard, who is collecting the assets of Mr. Madoff’s firm to distribute to investors burned in the scheme, said Harley International (Cayman) Ltd. invested more than $2 billion with Mr. Madoff, receiving an average annual return of 13.5%. Mr. Picard said the Cayman Islands-based fund ignored warning signs that should have alerted it to the fraud.
Harley International couldn’t be reached for comment.