Citigroup, accused by the trustee liquidating Bernard Madoff’s firm of ignoring warning signs of a massive Ponzi scheme, asked a bankruptcy judge to throw out the $430 million lawsuit, Bloomberg says.
The trustee doesn’t allege and can’t claim that Citigroup defendants had actual knowledge of the insolvency of Madoff’s firm or that any transfer they received was made with a fraudulent purpose, the New York-based bank said in a filing yesterday in U.S. Bankruptcy Court in Manhattan. The bank also rejected the trustee’s assertion that it should have detected the fraud at Bernard L. Madoff Investment Securities LLC.
“The trustee largely relies on the combination of widely known but innocuous information about BLMIS, along with obscure economic discrepancies developed by the trustee and his experts over the past two years,” Citigroup said in the filing...
Read more at http://www.bloomberg.com/news/2011-07-27/citigroup-asks-bankruptcy-judge-to-reject-430-million-madoff-trustee-suit.html
No comments:
Post a Comment