Irving Picard, trustee for the liquidation of Bernard Madoff Investment Securities, alleged that UBS ‘lent an aura of legitimacy’ to the Madoff fraud, which collapsed in 2008.
The trustee is seeking at least $2bn in behalf of Madoff’s victims, according to the complaint, filed in US Bankruptcy Court in New York.
The 101-page filing alleges 23 counts of financial fraud and misconduct against UBS and related entities and individuals.
The complaint alleges that although UBS was armed with the knowledge that Madoff’s operation was likely a fraud, but it chose to enable Madoff’s fraud for their own gain.
The lawsuit also alleges that the UBS funds withdrew $796m from Madoff’s operation in the 90 days before it collapsed and $1.1bn in the prior six years. It also said UBS made $80m in fees from sponsoring the funds.
