HSBC Sued for Aiding Bernie Madoff

Trustee says bank enabled fraud by ignoring warning signs
By Rob Quinn,  Newser Staff
Posted Dec 6, 2010 5:05 AM CST
Updated Dec 6, 2010 5:48 AM CST
HSBC Sued for Aiding Madoff
In this March 10, 2009 file photo, Bernard Madoff exits Manhattan federal court in New York.    (AP Photo/Louis Lanzano, File)

Bernie Madoff's Ponzi scheme survived for so long because HSBC ignored "red flags" and kept funneling investors' money to the fraudster, says the trustee trying to reclaim money for Madoff's victims. Irving Picard is suing the bank and a group of feeder funds for at least $9 billion, the New York Times reports.

"Had HSBC and the defendants reacted appropriately to such warnings and other obvious badges of fraud outlined in the complaint, the Madoff Ponzi scheme would have collapsed years, billions of dollars and countless victims sooner," Picard said in a statement. The trustee has until December 11, the second anniversary of Madoff's arrest, to file lawsuits to try and recover money for investors and he says more suits will be coming before the deadline.
(More HSBC stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.