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Friday, 10 December 2010

Madoff trustee sues Austrian for 19.6 bln dollars

10 December 2010 - 22H00

A trustee charged with recovering assets from the massive Bernard Madoff, pictured here in 2009, fraud case on Friday sued an Austrian banker and her alleged conspirators for 19.6 billion dollars.
A trustee charged with recovering assets from the massive Bernard Madoff, pictured here in 2009, fraud case on Friday sued an Austrian banker and her alleged conspirators for 19.6 billion dollars.

AFP - A trustee charged with recovering assets from the massive Bernard Madoff fraud case on Friday sued an Austrian banker and her alleged conspirators for 19.6 billion dollars.

In a lawsuit filed in a New York court, Irving Picard, claims Sonja Kohn collaborated for more than 20 years with Madoff in his massive Ponzi scheme.

According to the lawsuit, Kohn built the Medici Enterprise, which still operates, to feed Madoff's scheme with money from new investors.

"For more than twenty years, Kohn masterminded a vast illegal scheme... to exploit her privileged relationship with Madoff to feed over 9.1 billion dollars of other people?s money into his Ponzi scheme."

"No Ponzi scheme can survive without a constant influx of fresh capital, and the illegal scheme provided a flood of cash for Madoff," Irving said in the lawsuit.

"The total lost in the Ponzi scheme is approximately 19.6 billion dollars in net investor deposits, and without Kohn?s illegal scheme, the Ponzi scheme could not have continued for as long as it did."

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