Trustee charges HSBC with funnelling disgraced Ponzi King Madoff’s massive fraud

December 6th, 2010 - 1:24 pm ICT by ANI  

Bernard Madoff New York, Dec.6 (ANI): The court-appointed New York-based trustee trying to recover losses for victims of jailed Ponzi King Bernard Madoff has accused the Hong Kong and Shanghai Banking Corporation (HSBC) of fuelling the disgraced financier’s massive fraud.

According to the Daily Express,, the trustee of Madoff’s failed investment firm, Iving Picard, is suing HSBC for about nine billion dollars, claiming the bank turned a blind eye to “red flags” that should prevented it to stop funnelling money to Madoff.

Picard has also filed suit against two other global banks that did significant business with Madoff, seeking 6.4 billion dollars from JP Morgan Chase and two billion dollars from UBS.

The case against Madoff was initiated on December 15, 2008, days after law enforcement officials first learned that the fund managed by the fabled investor was a Ponzi scheme.

Madoff pleaded guilty in the matter last year and was sentenced to 150 years in prison.

Prosecutors eventually determined that Madoff took in some 64 billion dollars from investors.

An HSBC spokeswoman declined to comment on Sunday. (ANI)

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