Fraudster Bernard Madoff's family are facing 40 new law suits as lawyers claim they pocketed $69m from his Ponzi scheme.
Irving Picard, the Trustee for the liquidation of Bernard L. Madoff Investment Securities (BLMIS), filed 40 lawsuits in a New York bankruptcy court on Friday, 22 of which were filed against Madoff's relatives and his wife, Ruth Alpern Madoff.
Madoff's sister, nephew, his wife's sister, and in-laws will also face charges.
A further 18 cases were filed against former employees of BLMIS, their relatives, and other related entities, according to Picard's law firm Baker & Hostetler.
The lawsuits seek to recapture about $69m which the Trustee alleges was deposited by BLMIS customers, then diverted from the investment advisory business and fraudulently transferred to Madoff family members and BLMIS employees.
Any money recovered will be added to the BLMIS Customer Fund for equitable distribution among eligible customers of the Madoff Ponzi Scheme, says Baker & Hostetler.
"The complaints filed are a continuation of our recovery efforts against the Madoff relatives and employees who were closest to the centre of the fraud and who were, in many cases, among those who benefited most from the Ponzi scheme," Picard says.
With other legal actions against Madoff's family and business associates, Picard is seeking a total from this group of almost a third of a billion dollars, he says.
Picard is also suing UBS for more than $2bn (£1.3bn) amid claims it hid fraudster Bernard Madoff's Ponzi scheme while it lost his clients billions.
‘Promising lead’ or ‘Back to the lab’?
PA360 2019 revisited
Complaints triple in past year
Our weekly heads-up for advisers
Tracking real performance