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More Madoff Litigation – Trustee Sues Credit Suisse

Lawyers who are trying to recover money for the far-flung victims of the Bernard Madoff Ponzi scheme have moved to recover $375 million from banking giant Credit Suisse.

The trustee who is amassing the pool of money to pay back Madoff investors, filed a lawsuit late Monday in U.S. Bankruptcy Court in Manhattan against Credit Suisse and several affiliates, accusing it of harboring money that belongs to the estate of Mr. Madoff’s collapsed investment firm.  Most of that money flowed to the bank through Fairfield Sentry Ltd., the biggest feeder of investor funds into Mr. Madoff’s Ponzi scheme, according to the lawsuit. Other money went through Kingate Global, the lawsuit said.

Both of those funds are liquidating in the wake of the Madoff scam, which came undone in December 2008.