Feeder fund that invested in Ponzi scheme tries to recoup cash through lawsuit
Fairfield Sentry, a feeder fund that invested in the Ponzi
scheme of Bernard Madoff, sued the Abu Dhabi Investment Authority to try to
recover $300m in redemption payments.
Fairfield Sentry, citing a $3.2bn lawsuit against it by
Madoff trustee Irving Picard, has been filing so-called clawback actions aimed
at recouping money.
Funds it received from the jailed conman were passed on to
its own shareholders as redemption payments, it said in an April 1 bankruptcy
“Unless redemption payments paid to shareholders are
recovered for the funds’ estate, the funds will be unable to satisfy their
liabilities and claims,” it said in the filing.
The Abu Dhabi sovereign wealth fund is due to respond to the
lawsuit in May, according to court records.
Fairfield Sentry is being liquidated in the British Virgin
Islands and has a US proceeding to protect its US assets.
Euart Glendinning, a spokesman for the investment authority,
didn’t immediately respond to emails seeking comment outside of regular
business hours in the UAE.
Madoff is serving a 150-year sentence in the US after being found guilty of masterminding a $65bn Ponzi-style fraud in June 2009.
The case is Fairfield Sentry Ltd v. Abu Dhabi Investment
Authority, 11-01719, US Bankruptcy Court, Southern District of New York.
I can't wait to see the outcome of this one.
BCCI all over again?
I don't understand the link between ADIA and Madoff; why is Fairfield Sentry suing ADIA for Madoff's Ponzi?
Madoff disgusts me.
Here's someone worse than Madoff: http://texsquixtarblog.blogspot.com/2009/04/who-is-worse-bernie-madoff-or-rich.html
Its like this, ADIA invested in Madoff's fund via Fairfield. Now that everyone knows Madoff was running a ponzi, they are trying to get back the money he scammed people out of (huge amounts of money). Now when trying to get that money back, they are going after the payments made by madoff's fund to fairfield through withdrawals, earnings etc.. a share of that money would have inturn been given to ADIA according to their investment with Fairfield. So fairfield is suing ADIA to get that money back in order to give it to Madoff's trustee, who inturn will send it out to the people who lost their money in the scam...