Madoff investors by the trustee Sued for Alleged fictitious profit

A group of former investors of Bernard Madoff were sued by a director appointed by the court trying to recover the artificial gains they received in the six years before signing the con declared bankruptcy in December 2008.

The trustee, lawyer from New York Irving Picard, sued the people who invested with Madoff and withdrew more money than they contributed. Picard, with the approval of the bankruptcy judge overseeing the liquidation of New York, Bernard L. Madoff Investment Securities LLC, said it would seek fictitious profits paid to investors in suits called clawback.

Most of the previous suits filed by Picard have sought money Madoff family members, staff, funds and others who are accused of having known Madoff was running a scam. In many of the lawsuits filed yesterday, Picard does not claim investors knew or should have known about the fraud.

"The payments received by the accused are allegedly non-existent profits earned in the account, but were in fact other people's money," Picard said in a report that $ 2.8 million David Washburn, an investor of Madoff.

Washburn did not return a phone call seeking comment.

Also sued Marion Madoff, the wife of the brother of Peter Madoff, Picard said he received $ 14.1 million in customer funds to be returned. Picard and Peter Madoff sued in October last year.

Charles Spada, lawyer Peter Madoff, did not immediately return a call to his office after hours yesterday.

New Complaints

Picard had at least 41 new cases yesterday in U.S. Bankruptcy Court in Manhattan.

The new allegations follow more than two dozen filed by Picard seeking to recover more than $ 17.5 million from various parties, including friends and family Madoff, and feeder funds, which addressed most or all of the money Madoff customers. One of the suits, filed on Nov. 23 seeking $ 2 billion of UBS AG on the Swiss bank's loan fraud helped Madoff.

Madoff, 72, is serving 150 years in prison after pleading guilty to orchestrating the biggest story in Ponzi scheme company in New York.

At the time of his arrest, Madoff account statements reflecting the accounts of 4900 with $ 65 billion in nonexistent investments, according to Picard. Investors lost about $ 20 billion in capital.

The SIPC is a bankruptcy case against Bernard L. Madoff Investment Securities LLC, 08-1789, U.S. Bankruptcy Court Southern District of New York (Manhattan).