UPDATE 3-Madoff trustee seeks another $555 mln from UBS

* Picard files second claim against UBS

* Filing brings total recoveries sought from UBS to $2.5 bln

* UBS rejects allegations

* Claim also filed against money manager Tremont

(Adds UBS comment, share price, Tremont claim)

ZURICH, Dec 8 (BestGrowthStock) – Irving Picard, the lawyer trying
to recover money for defrauded investors of convicted swindler
Bernard Madoff, is seeking another $555 million from UBS
(UBSN.VX: )(UBS.N: ).

Picard had already sued the Swiss bank last month for more
than $2 billion, accusing it of collaborating in Madoff’s
massive Ponzi scheme. [ID:nSGE6AN0EK]

Now Picard has come back for more.

The second filing against UBS would bring the total
recoveries claimed from UBS to around $2.5 billion.

The lawyer has also begun a legal action against
multi-billion dollar U.S. money manger Tremont Group Holdings.

Picard’s latest action against UBS, filed with a U.S. court,
seeks to recover the extra cash for distribution to defrauded
Madoff customers with valid claims. The exact amount will be
determined at trial.

UBS rejected the fresh claims.

“The US trustee’s allegations are completely unfounded and
without merit,” UBS spokeswoman Tatiana Togni said.

“UBS was not aware of any wrongdoing by Madoff. We will take
all appropriate steps to demonstrate that the allegations are
false and unfounded,” she said.

In Picard’s initial claim, 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.

Picard has also taken action against JPMorgan Chase & Co
(JPM.N: ) to recover $6.4 billion and HSBC (HSBA.L: ) for $9 billion

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.

The latest case against UBS is Picard v. UBS AG et al, U.S.
Bankruptcy Court, Southern District of New York, No. 10-05311.

Picard’s action against Tremont accuses the firm of being
the second-largest feeder-fund network in the Madoff ponzi
scheme, according to a statement from the lawyer.

Tremont was not immediately available for comment.

(Reporting by Sakthi Prasad and Santosh Nadgir in Bangalore
and Albert Schmieder in Zurich; Editing by Muralikumar
Anantharaman and Jane Merriman)

UPDATE 3-Madoff trustee seeks another $555 mln from UBS