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Madoff lawyer Picard sues HSBC for $9 billion
Business digest: Lawyer claims HSBC allowed Madoff to continue fraud despite learning about numerous ‘red-flags’
HSBC is being sued for $9 billion by the man charged with recovering money for Bernie Madoff's victims.
Irving H Picard, a court-appointed trustee seeking to recover more than $15.5 billion for Madoff's former customers, says that HSBC ignored "red flags" surrounding Madoff's business and has asked accountancy firm KPMG to investigate.
A spokesman for HSBC refused to comment on Sunday evening.
HSBC is accused of creating and maintaining a network of feeder funds that channelled money to Madoff, who was sentenced to 150 years in jail after pleading guilty last year to the biggest Ponzi scheme in history.
HSBC was "wilfully and deliberately blind to the fraud even after learning about numerous red flags surrounding Madoff", Picard alleges.
The suit is the third such claim in a week and follows a $6.4bn claim filed last week against JPMorgan and a $2bn claim against UBS.
Read a full report at the /Telegraph/. ·
