US business sues Madoff to get back $10 mn
A fuel service company has sued the trustee in charge of liquidating Bernard Madoff's assets, seeking to recover $10 million it invested with the disgraced financier.
By Agencies |
NEW YORK: A fuel service company has sued the trustee in charge of liquidating Bernard Madoff's assets, seeking to recover $10 million it invested with the disgraced financier.
Rosenman Family LLC of Great Neck said in the lawsuit filed in US Bankruptcy Court in Manhattan on Thursday that it deposited the money in one of Madoff's accounts on Dec. 5, six days before Madoff was arrested.
The money was supposed to be invested after the first of the year with Bernard L. Madoff Investment Securities LLC. The lawsuit names trustee Irving H. Picard along with JP Morgan Chase & Co., where the company says it deposited the money.
Picard declined to comment, as did a lawyer for the bank. Madoff is under house arrest awaiting trial on a securities fraud charge after allegedly admitting that he lost more than $50 billion from investors in a pyramid scheme.
Investors have begun filing lawsuits aimed at recovering money from Madoff and some of the securities funds that invested with him. On Wednesday, Madoff turned over an accounting of his assets to the Securities and Exchange Commission. That information has not been made public.
Howard Kleinhendler, a lawyer for Martin Rosenman, president of Stuyvesant Fuel Service Corp., said his client spoke to Madoff about the investment on Dec. 3.
According to the lawyer, Madoff told him his private investment fund was closed until Jan. 1, but that Rosenman could wire money to one of Madoff's accounts where it would be held until the fund opened after the new year. On Dec. 5, Rosenman wired the $10 million from his bank to a Chase account, according to the lawsuit.
``We believe the money is still parked at JP Morgan. If we can trace our money, we are entitled to get it back,'' he said. ``We don't have to get in the back of the line with investors who have been with Madoff for 10 or 20 years.''
Kleinhendler said his client's business, a large independent operator of fuel services in the New York area, will not be affected by the investment.
Rosenman Family LLC of Great Neck said in the lawsuit filed in US Bankruptcy Court in Manhattan on Thursday that it deposited the money in one of Madoff's accounts on Dec. 5, six days before Madoff was arrested.
The money was supposed to be invested after the first of the year with Bernard L. Madoff Investment Securities LLC. The lawsuit names trustee Irving H. Picard along with JP Morgan Chase & Co., where the company says it deposited the money.
Picard declined to comment, as did a lawyer for the bank. Madoff is under house arrest awaiting trial on a securities fraud charge after allegedly admitting that he lost more than $50 billion from investors in a pyramid scheme.
Investors have begun filing lawsuits aimed at recovering money from Madoff and some of the securities funds that invested with him. On Wednesday, Madoff turned over an accounting of his assets to the Securities and Exchange Commission. That information has not been made public.
Howard Kleinhendler, a lawyer for Martin Rosenman, president of Stuyvesant Fuel Service Corp., said his client spoke to Madoff about the investment on Dec. 3.
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According to the lawyer, Madoff told him his private investment fund was closed until Jan. 1, but that Rosenman could wire money to one of Madoff's accounts where it would be held until the fund opened after the new year. On Dec. 5, Rosenman wired the $10 million from his bank to a Chase account, according to the lawsuit.
``We believe the money is still parked at JP Morgan. If we can trace our money, we are entitled to get it back,'' he said. ``We don't have to get in the back of the line with investors who have been with Madoff for 10 or 20 years.''
Kleinhendler said his client's business, a large independent operator of fuel services in the New York area, will not be affected by the investment.
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