The trustee liquidating convicted fraudster Bernard Madoff's companies is suing Credit Suisse for $375 million, money which he said was transferred to the bank but belongs to the estate of Madoff's collapsed businesses.
The filing, on December 12, followed claims of $38.7 million and $37.3 lodged respectively against Swiss private banks Falcon, formerly AIG Private bank before it was sold by the U.S. insurer, and Julius Baer on August 8.
All the claims refer to transfers from Connecticut-based Fairfield Sentry, the largest Madoff feeder fund which reportedly had assets under management of close to $7 billion prior to the collapse of Madoff's Ponzi scheme.
"While we are still reviewing the complaint, there is no allegation that CS did anything wrong," Credit Suisse said in a statement.
"This is simply another of the numerous claims the Trustee has filed in an attempt to claw back further funds and is subject to legal defenses."
Julius Baer said it does not comment on reports of alleged or pending proceedings. Falcon also declined to comment.
In August the trustee, Irving Picard, filed a $2 billion claim against UBS and related defendants, accusing the bank of aiding the fraud by sponsoring foreign feeder funds, including Luxalpha SICAV, lending them "an aura of legitimacy."
But that claim was tossed out by a U.S. judge, who said Picard had no power to pursue common law claims against the banks, adding that such claims properly belong to former Madoff customers.
As of September 30, Picard said he had recovered or entered into agreements to recover some $8.7 billion, or around 50 percent of the approximately $17.3 billion estimated to have been lost by Madoff customers who filed claims.
© 2014 Thomson/Reuters. All rights reserved.