The trustee seeking damages for defrauded
investors in Bernard Madoff’s feeder fund scam has raised the
amount he is seeking from UBS to more than $2.5bn.
Irving Picard added $555m to the
$2bn claim he brought against the Swiss bank in November,
citing 26 additional counts of fraud and misconduct in the bank’s
alleged involvement with Bernard L. Madoff Investment
Securities.
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Picard said that UBS, and other financial
institutions including HSBC and UBP, had “capitalized on the Ponzi
scheme in the face of clear indications of fraud.”
UBS says allegations
unfounded
UBS denied the allegations and said in a
statement that the fund documentation made it very clear that
UBS was not expected to be responsible for the safekeeping of the
assets. It claims the fund documentation contained an explicit
waiver to that effect.
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By GlobalData“UBS does not have responsibility towards
these shareholders for the unfortunate results of the Madoff
scandal,” the statement read.
The bank added the allegations of wrongdoing
were completely unfounded and without merit and that it would take
action to prove the allegations were false.
Picard already filed 100
lawsuits
Picard has already filed 100 lawsuits on
behalf of Madoff’s defrauded investors and has until 11 December to
sue other banks under American federal bankruptcy law.
Yesterday, PBI reported that
Swiss private bank Union Bancaire Privee was the first to settle
claims brought against it by Picard and agreed to pay damages of
$500m.
Madoff pleaded guilty to running a
multibillion-dollar Ponzi scheme in which he and his collaborators
lost $65bn. He is now serving a 150-year sentence in jail.
