Bernard Madoff's London-based investment business has been formally placed into liquidation, in a move that could shed new light on the fraudster's operations, according to The Sunday Times.
Liquidators were appointed on Thursday to wind up Madoff Securities International, which was known as a private piggy bank for Madoff and his family.
Although the London arm was placed in provisional liquidation when Madoff was arrested in December 2008, a series of bureaucratic delays have slowed the winding-up process. As a result, a number of formal documents detailing the assets and liabilities of the business have never been published.
A full statement of affairs is now expected within weeks, followed soon after by a formal creditors’ meeting.
The last filed accounts of Madoff Securities International showed the firm had shareholder funds of £117m. However, documents filed in Florida by the provisional liquidator to the firm have indicated its liabilities potentially exceed $1bn (£600m).
The US government has said Madoff used the London business to launder money as part of the cover story he created to mask his enormous Ponzi scheme.
Accounts from the London firm also showed it received millions of pounds in “fees” from its US parent company over recent years, The Sunday Times reports.
Madoff also stole money from the firm to buy yachts and luxury cars for himself and his family. His wife, Ruth, received $2m in payments from the London operation less than a month before the fraud emerged.
KPMG, which audited Madoff’s accounts, is among the parties being sued by investors who lost money in the scam.
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