Madoff Trustee’s Lawsuit Against The Kingate Funds Approved By Court

by San Antonio Attorney

The Madoff trustee’s $975.5 million claims against two investment funds that allegedly took part of the Ponzi scheme was approved by a court on Tuesday.

Trustee Irving Picard’s case against the Kingate Euro Fund, the Kingate Global Fund, and other defendants was endorsed by U.S. Bankruptcy Judge Burton Liflan in Manhattan.

Picard said that Carlos Grosso and Federico Ceretti organized a scheme beginning 1994 until 2008 to funnel their $1.7 billion funds in Kingate Euro Fund and Kingate Global Fund to Bernard L. Madoff Investment Securities LLC.

The two men had tight and long-term personal and business relationships with Bernard Madoff. They disregarded numerous warning signs of fraud while they received huge amounts of money in fees from the investors of Kingates, according to a written complaint by Picard.

Bernard Madoff orchestrated the biggest Ponzi scheme in U.S. history, which was exposed in 2008. He pleaded guilty to running a massive investment fraud and is serving 150 years of imprisonment.

Picard is seeking to recover $975.5 million dollars which is the sum of money that was obtained by Grosso, Ceretti, and the Kingate Funds from the former investment firm.

The court records show that the trustee first filed a $255 million lawsuit against the funds in April 2009. The recent amended complaint includes new defendants.

Zolfo Cooper, a British Virgin Islands based firm, was appointed to liquidate the funds. There was no representative from the firm who was available to give a comment.

The lawyer representing FIM Advisers LLP, which is a firm managed by Grosso and Ceretti, was not able to directly return a call asking for comment.

Picard has filed roughly 1,050 lawsuits on behalf of former Madoff investors to recover about $90 billion.

So far he has recovered about $7.6 billion of which a great portion of it is still tied up in litigation.

There are many kinds of bankruptcy and if you want to be debt free, liquidation is one option. A San Antonio bankruptcy attorney can help you determine if you are eligible for liquidation.

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