Madoff-linked fund sues Abu Dhabi for $300m

Feeder fund that invested in Ponzi scheme tries to recoup cash through lawsuit
Madoff-linked fund sues Abu Dhabi for $300m
Madoff is serving a 150-year sentence in the US after being found guilty of masterminding a $65bn Ponzi-style fraud in June 2009
By Bloomberg
Wed 06 Apr 2011 09:34 AM

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
court filing.

“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.

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