Updated: The Madoff Clawback Countdown

December 8, 2010

As the December 11th deadline for filing clawback suits related to the Madoff Ponzi scheme approaches, some updates:

According to the Boston Globe, “The trustee in the Madoff bankruptcy case has sued Massachusetts Mutual Life Insurance Co. and several of its subsidiaries over $3 billion in customer money that its hedge fund unit lost by investing with Bernard Madoff.

In a statement on the lawsuit Tuesday night, the trustee said the Springfield insurer’s Tremont Group Holdings Inc. and related entities ignored “obvious warning signs’’ of fraud with Madoff and failed to perform any meaningful check of the convicted swindler’s operations or professed investment results.”

Here are some additional filing of note:

  • The largest suit initiated to date is against Austrian banker Sonja Kohn, Bank Medici and related businesses, for $19.6 billion.
  • Recovery of $425 million is being sought from Citigroup’s Citibank.
  • Suits have also been filed against additional financial institutions including, Natixis SA ($400 million), Fortis Prime Fund Solutions Bank Ltd ($230 million), ABN AMRO Bank N.V. ($270 million) and Bilbao Vizcaya Argentaria ($45 million).
  • Boston Philanthropist Carl Shapiro, and his family foundation, have agreed to forfeit $625 million in settlement of all claims. The original court filings alleged they withdrew $1 billion in fictitious profits.
  • Fred Wilpon, owner of the Mets Major League Baseball team, his firm Sterling Equities and other defendants were sued for $48 million. Following the action, Sterling issued a statement that, regardless of the outcome of the litigation, the Mets have “necessary financial and operational resources to compete.”
  • An additional $555 million from Swiss bank UBS AG is being claimed – bringing the total recoveries and damages sought from the bank to around $2.5 billion.

On December 9th, Hadassah, the Women’s Zionist Organization of America, Inc., announced – subject to approval of the bankruptcy court – to pay $45 million in settlement of all claims related to the Madoff Ponzi scheme.

The American Jewish Congress has apparently reached a settlement deal with the trustee and has waived the December 11th filing requirement.

This post will be continually updated as additional information becomes available.