Luxembourg liquidates Madoff-hit funds

16 April 2009

Luxembourg's market supervisor has reportedly liquidated two funds exposed to losses from Bernard Madoff's $65 billion (£43.5 billion) Ponzi fraud.

CSSF issued statements confirming it has wound up the Luxalpha fund - which had Switzerland's largest bank UBS as its custodian - as well as the Herald fund, which had Europe's biggest lender HSBC as a depository bank, Reuters stated.

In each case, liquidators are required to update fund investors and creditors on the liquidation process at least once a year. The first such meeting for the Luxalpha and Herald investment pools will be held before the end of October, the news agency noted.

Last January, investors' protection group Deminor launched a legal action against UBS and HSBC accusing them of neglecting clients left with losses from the disgraced Wall Street broker's Ponzi scheme.

A month before, Luxalpha board member Rene-Thierry Magon de la Villehuchet was found dead in his New York office after apparently committing suicide over losses linked to the Madoff fraud.

Mr Madoff is currently awaiting sentencing after pleading guilty to orchestrating the multi-billion dollar swindle.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development