The trustee recovering assets for investors in jailed financier Bernard Madoff’s fraudulent business filed papers in a London court seeking to recover at least $80 million from the international arm of Madoff’s business.
Trustee Irving Picard said the lawsuit was filed in UK’s High Court of Justice Commercial Court to recover funds that flowed through Madoff Securities International Limited, including money used to buy luxury goods and services enjoyed by the Madoff family such as a yacht and a home in the south of France.
Picard said the defendants include all of the former directors of Madoff’s international wing, including his brother, Peter, and two sons, Mark and Andrew.
Martin Flumenbaum, a lawyer representing Mark and Andrew Madoff, called Picard’s claims baseless.
In addition, Picard, in a Manhattan Bankruptcy Court filing late yesterday, is seeking about $100 million from Sandra Manzke, members of her family, Maxam Capital and related Maxam investment funds.
“The Maxam organization and funds were established solely to continue Manzke’s collaboration with and enrichment through [the Madoff firm],” Picard said in a statement.
“In the less than three years Maxam was in business, it channeled more than $300 million into [Madoff firm],” he said.
Also yesterday, Picard filed lawsuits against seven global financial institutions — Citibank, Natixis, Fortis, ABN AMRO, Banco Bilbao Vizcaya Argentaria, Merrill Lynch, and Nomura — seeking to recover more than $1 billion.
According to the seven complaints, these banks received transfers of money from Madoff through numerous feeder funds at times when they either knew or should have known of Madoff’s fraud.

