• Home
  • About
  • ‘Enforcement 40’ for 2020
  • Webcasts
  • Enforcement Hall of Fame
  • Contact
Securities Docket
Ankura
  • Class Actions
  • Criminal
  • Events
  • Features
  • Global
  • People
  • SEC
Browse: Home / 2009 / January / 21 / Austria: Madoff-Exposed Bank Medici Reportedly on Brink of Collapse, Class Action May Be in Works

Austria: Madoff-Exposed Bank Medici Reportedly on Brink of Collapse, Class Action May Be in Works

By Securities Docket on January 21, 2009, 12:49 pm

Austria’s Bank Medici has reportedly been hit hard by the alleged Madoff Ponzi scheme, to the point that it is on the brink of collapse.  Forbes reports that “former associates and banking sources say there is little hope for the five-year-old bank as investors have lost trust in the business.”  Two of Medici’s funds, Herald USA and Herald Luxemburg, with total assets worth $2.1 billion, were reportedly exposed to the alleged Madoff fraud to an unknown extent.

Forbes reports that Bank Medici has already lost most of its customer base.  According to its former CEO, Helmut Frey, 90.0% of the bank’s income was generated out of Madoff funds.

Advofin, an Austrian lawfirm representing 200 investors exposed to Madoff funds, stated today that it was considering a class action suit in the U.S. against the bank’s majority shareholder as well as Bank of Austria, which owns a 25.0% stake.  A spokesman for Advofin said “the class action could be ready in a couple of weeks.”

Read the Forbes article

Posted in Global | Tagged Austria, Features, Financial Fraud, Madoff

« Previous Next »

Subscribe

‘Enforcement 40’ for 2020

Ankura

Our Sponsors

Securities-Docket_260x125_14Sec Ankura 260x125

Join Us On LinkedIn

Join the Securities Litigation and Enforcement Group on LinkedIn

Archives

Copyright © 2023 Securities Docket.

  • Home
  • About
  • ‘Enforcement 40’ for 2020
  • Webcasts
  • Enforcement Hall of Fame
  • Contact
  • Criminal
  • Class Actions
  • Features
  • Global
  • People
  • SEC
  • Events