Irving Picard, the court-appointed trustee searching the globe to recover money for defrauded investors of convicted swindler Bernard Madoff, has sought an additional $555 million in recoveries from UBS AG
Picard filed a complaint with a U.S. court seeking to recover the additional money for distribution to defrauded Madoff customers with valid claims, with an exact amount to be determined at trial.
On Nov 24, the trustee sued UBS and others for more than $2 billion, accusing them of collaborating in the imprisoned swindler's massive Ponzi scheme.
The second filing against UBS brings total recoveries sought from the Swiss bank to $2.5 billion.
UBS was accused of sponsoring foreign feeder funds that sent client money to the once-respected money manager, lending them an aura of legitimacy while shielding itself from liability through secret side agreements.
The trustee had earlier sued JPMorgan Chase & Co
Madoff is serving a 150-year prison sentence after pleading guilty in March 2009 to running a decades long investment fraud of up to $65 billion, an unprecedented scheme that shook investor confidence in market regulators.
The case is Picard v. UBS AG et al, U.S. Bankruptcy Court, Southern District of New York, No. 10-05311.
(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)