Madoff’s relatives and employees face 40 new lawsuits

NEW YORK (BestGrowthStock) – The trustee seeking to recover money for defrauded Bernard Madoff investors said he filed 40 lawsuits on Friday, including several against relatives of the convicted money manager.

Trustee Irving Picard filed suits against Madoff’s wife, Ruth Alpern Madoff, his sister and his nephew. Ruth’s sister and relatives, as well as former employees of Bernard L. Madoff Investment Securities LLC, and their relatives, also face suits which in total aim to recapture $69 million, Picard’s law firm said in a statement.

The once-respected Madoff is in prison after his massive Ponzi scheme was uncovered late in 2008. Irving’s legal actions have piled up in the last few days, ahead of a December 11 legal deadline.

“The complaints filed today are a continuation of our recovery efforts against the Madoff relatives and employees who were closest to the center of the fraud and who were, in many cases, among those who benefited most from the Ponzi scheme,” Picard said in a statement.

Earlier this week, Picard sued Swiss bank UBS AG and others for more than $2 billion for their involvement in a Luxembourg-regulated Madoff feeder, so called because assets it collected were passed directly to Madoff funds.

Friday’s suits were brought in the United States Bankruptcy Court for the Southern District of New York. The suits — 22 of which were against relatives of Madoff and his wife — add to previous legal actions against his relatives and employees.

Under U.S. law, claimants have two years to file a suit from the time they knew of a fraud, giving potential claimants in Madoff’s estimated $65 billion fraud until December 11 to file any actions.

(Reporting by Jonathan Spicer; Editing by Sanjeev Miglani)

Madoff’s relatives and employees face 40 new lawsuits