Madoff Trustee Sues Swiss Banking Giant

from The New York Times:

Madoff Trustee Sues UBS to Recover $2 Billion

The trustee charged with trying to recover money for the victims of Bernard L. Madoff’s huge Ponzi scheme sued the Swiss bank UBS and its affiliates on Wednesday, accusing it of enabling the fraud.

The complaint, filed in federal bankruptcy court in Manhattan, is seeking to recover at least $2 billion.

UBS sponsored and administered several international feeder funds related to Mr. Madoff’s investment company. The complaint contends that UBS’s participation allowed for more than $1 billion to be funneled to Mr. Madoff – even as the bank knew a fraud was afoot and took steps to protect itself against liability if Mr. Madoff’s firm went under.