The trustee overseeing the liquidation of Bernard L. Madoff Investment Securities brought a third lawsuit yesterday demanding the return of huge sums from investors that had extensive relationships with Madoff. The NYLJ reports that trustee Irving H. Picard (pictured) brought a $1.1 billion complaint on Tuesday against Harley International Ltd. claiming the firm “knew or should have known” that its account statements “did not reflect legitimate trading activity and that Madoff was engaged in fraud.”
On May 1, the trustee brought a similar, $1 billion action against Stanley Chais alleging he knew or should have know the “implausibly high returns” he received from Madoff since 1995 were the result “of manipulated purported returns, false documents and fictitious profits.” Days later, the NYLJ reports, Picard demanded that J. Ezra Merkin return roughly $558 million in “non-existent principal” he withdrew from the Madoff firm before it went under.
