Written by Biloxi
Irving Picard, Bernie Madoff trustee who is appointed to recover money for Madoff's clients has found another bank, other than JPMorgan Chase that turned a blind eye to Madoff's Ponzi scheme: Citigroup:
"Citi had access to and received information placing it on inquiry notice that Madoff's advisory business was potentially a fraud, and/or that Madoff was making hundreds of millions, if not billions, of dollars in avoidable transfers," said the complaint, filed December 8 in U.S. Bankruptcy Court in New York and made public on Monday.
In Mr. Picard's lawsuit against Citigroup, Mr. Picard alleged that Citigroup saw the red flags and had knowledge of possibility on Madoff's Ponzi scheme just like in Mr. Picard's lawsuit against JP Morgan Chase. Mr. Picard stated that Citigroup saw the red flags more than five years ago:
Picard's lawsuit said red flags should have been apparent to Citi as early as 2005. By September 2008, it said, Citigroup Global Markets Ltd (CGML) began making inquiries to other banks to take over its exposure to the Madoff firm. The other banks were not identified in the lawsuit.
It cited one email by a CGML trader that said: "We're needing to terminate our Madoff trade. Do you have appetite for that risk over there?"
The other bank responded, "don't think so, madoff is not very popular here either."
Mr. Picard's lawsuit against Citgroup seeks about $425 million. Citgroup denies any wrongdoing.
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