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ARTICLE · 30 MARCH 2009

What Are Trustees Madoff?

Norton Rose Fulbright Australia
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The global financial crisis and the subsequent credit crunch has unwittingly exposed what appears to be the world's largest "Ponzi Scheme" exploited by Bernard Madoff via his investment brokerage company, Bernard L. Madoff Investments Securities LLC.

AustraliaFinance and Banking
Mark Abramovich
Mark Abramovich
Author LinkedIn connections

The global financial crisis and the subsequent credit crunch has unwittingly exposed what appears to be the world's largest "Ponzi Scheme" exploited by Bernard Madoff via his investment brokerage company, Bernard L. Madoff Investments Securities LLC ("BLMIS"). BLMIS has been placed in liquidation pursuant to the US Securities Investor Protection Act ("SIPA").

This scheme appears to now involve $50 billion USD and at least 8000 investors from around the world. These investors range from individuals (including some high profile actors) to charitable organisations, banks, professional investment firms, feed funds and superannuation/pension funds. Yes, it will be a lawyers picnic with approximately 5000 lawyers from around the globe joining a global alliance of at least 35 law firms (the author's firm is included) to join a global class action for some sort of recovery. This article examines some of the lessons trustees can learn from the Madoff case.

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