Madoff judge asks Gibraltar to hand over seized funds

Date: Thursday, August 26, 2010
Author: AFP

NEW YORK — A US judge overseeing the liquidation of Wall Street con man Bernard Madoff's assets has asked a court in Gibraltar to transfer seized funds to pay victims, according to a court document Wednesday.

The funds amounting to 73 million dollars were deposited in Gibraltar banks by Vizcaya Partners Limited, a hedge fund which worked with Madoff's firm, US bankruptcy judge Burton Lifland said in a letter to the Gibraltar court, a copy of which was obtained by AFP.

Judge Burton issued on August 3 a judgement ordering Vizcaya to pay 180 million dollars to government-appointed trustee Irving Picard overseeing the liquidation of Bernard L. Madoff Investment Securities (BLMIS).

Vizcaya had allegedly deposited 180 million dollars in off-shore accounts in the months before the Madoff scam was revealed.

The judge asked the Gibraltar court to release 73.08 million dollars it had seized from local Vizcaya accounts last year.

"I ask for your support to ensure the successful enforcement of the default judgement by transferring the funds... within your court's jurisdiction to this court or to Irving H. Picard," Burton wrote.

"I believe that it would be in the best interest of the BLMIS estate to turn the Gibraltar funds over."

Madoff, 72, was sentenced last year to 125 years in prison for scheming a 50-billion-dollar Ponzi or pyramid scheme in which major banks, wealthy private investors, universities, charities and Jewish organizations were among the victims.