Madoff trustee wins $180M from hedge fund

The trustee for Bernard Madoff's investment-advisory business won a $180 million default judgment against Vizcaya Partners Ltd. over claims the hedge fund profited from the conman's fraud.
OCT 22, 2010
The trustee for Bernard Madoff’s investment-advisory business won a $180 million default judgment against Vizcaya Partners Ltd. over claims the hedge fund profited from the conman’s fraud. Vizcaya, based in the British Virgin Islands, failed to plead its case “or otherwise defend itself” against trustee Irving Picard’s allegations, according to an Aug. 3 ruling by U.S. Bankruptcy Judge Burton Lifland in Manhattan. Vizcaya, which opened an account with Madoff in 2001, missed a deadline to respond to the April 2009 lawsuit accusing it of taking fake profit from the fraud. The default applies to Vizcaya and its affiliates, Zeus, Siam and Asphalia. Picard has recovered more than $1.5 billion for Madoff victims. His lawsuits seek another $15 billion from funds that funneled money to the fraud, as well as Madoff’s friends and family. Madoff, 72, pleaded guilty last year and is serving a 150-year sentence for running the largest Ponzi scheme in U.S. history. Recovery of Vizcaya’s damages may hinge on a ruling by the Supreme Court of Gibraltar, which is holding about $74 million on behalf of the hedge fund’s bank, Banque Jacob Safra (Gibraltar) Ltd. The default doesn’t apply to the bank, which was also sued by Picard and is challenging the claims. Vizcaya’s lawyer, Anthony Paccione of Katten Muchin Rosenman LLP in New York, didn’t immediately return a call for comment.

Latest News

Advisor moves: RBC lands $1B UBS team in Pittsburgh
Advisor moves: RBC lands $1B UBS team in Pittsburgh

Elsewhere, Wells Fargo Advisors adds a $400 million Morgan Stanley veteran in Naples as an ex-Cetera advisor goes independent with LPL

GWG’s Heppner hires Puff Daddy’s attorneys as criminal sentencing looms
GWG’s Heppner hires Puff Daddy’s attorneys as criminal sentencing looms

According to a federal charges Bradley Heppner, 60, received more than $150 million in payments through funneling money from GWG Holdings to a shell company.

Investors accuse Broadstreet fund of alleged billion-dollar 'Ponzi-like' scheme
Investors accuse Broadstreet fund of alleged billion-dollar 'Ponzi-like' scheme

A $1B fund allegedly skimmed 30% off the top, then swapped cash for locked-up stock.

Lawsuit alleges Skechers founders manipulated $9.4B buyout to shortchange investors
Lawsuit alleges Skechers founders manipulated $9.4B buyout to shortchange investors

Insiders allegedly rewrote projections three times in four days.

Fintech bytes: FINNY signs Visionary Square for pay-as-you-go AI prospecting program
Fintech bytes: FINNY signs Visionary Square for pay-as-you-go AI prospecting program

TCI Wealth Advisors also has also tapped JIFFYAI to unify onboarding and servicing, while TradePMR adds ICE market data to its Fusion advisor platform

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor