Skip to main content

Madoff trustee targets hedge funds for $3.6 billion

By Jason Kessler, CNN
Bernard Madoff pleaded guilty in March to 11 counts related to running the most massive Ponzi scheme in history.
Bernard Madoff pleaded guilty in March to 11 counts related to running the most massive Ponzi scheme in history.
STORY HIGHLIGHTS
  • The trustee is overseeing the liquidation of convicted fraudster Bernard Madoff's investment firm
  • He has expanded his lawsuit in U.S. bankruptcy court
  • The 228-page complaint provides a detailed history of Madoff's relationship with group of hedge funds

New York(CNN) -- The trustee overseeing the liquidation of convicted fraudster Bernard Madoff's investment firm has expanded his lawsuit in U.S. bankruptcy court, setting his sights on one group of hedge funds in particular.

Irving Picard amended his suit -- initially filed in May 2009 -- to demand $3.6 billion from 43 new defendants, the majority of whom are subsidiaries or employees of the Fairfield Greenwich Group.

Fairfield Greenwich Group was one of Madoff's largest feeder funds.

Among the most significant additions to the list of defendants were Walter Noel, Jeffrey Tucker and Andres Piedrahita, the group's co-founders.

The 228-page complaint provides a detailed history of Noel's relationship with Madoff's firm, beginning with his first investment in 1989.

It declares that the hedge fund employees "were active participants in and substantially aided, enabled and helped sustain Madoff's Ponzi scheme."

The complaint says the defendants abetted the fraud through active collusion and negligence alike.

"The defendants misled regulators, investors and potential investors, and generally looked the other way, focusing only on self-interest and profit," it says.

The Fairfield Greenwich Group did not immediately respond to a request for comment.