Friday, October 2, 2009

Madoff trustee sues Madoff's family for $198M

NEW YORK — A trustee trying to recover Bernard Madoff's assets to reimburse investors has sued his brother, sons and a niece to recover nearly $200 million.

The lawsuit was filed Friday in U.S. Bankruptcy Court in Manhattan.

In the court papers, Trustee Irving Picard says the money was received by the family members as a result of preferential payments, fraudulent transfers and breaches of fiduciary duties.

The lawsuit said the family members were completely derelict in their duties and responsibilities.

Madoff is serving a 150-year prison sentence after he admitted losing billions of dollars for thousands of clients over a half-century career that saw him rise to be a Nasdaq chairman.

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