The court-appointed trustee recovering assets for victims of Bernard Madoff's Ponzi scheme will move ahead with lawsuits brought against his elder son Mark Madoff, who killed himself Saturday morning, a lawyer for the trustee said.
"The litigation will take its course and the death of Mark Madoff will not impact that fact," the lawyer, David Sheehan, said in an email Sunday.
That the trustee intends to pursue the suits is not surprising. Among the hundreds targeted in suits by the trustee, Irving Picard, in recent weeks are estates of former Madoff investors.
After the September death of Stanley Chais, a California money manager who fed clients' funds to Mr. Madoff, for example, Mr. Picard said he would continue litigation that sought $1.1 billion from Mr. Chais and related entities. Mr. Chais had denied any wrongdoing.
On Saturday, Mr. Picard said: "This is a tragic development, and my sympathy goes out to Mark Madoff's family."
Almost a year after the multi-billion dollar fraud conducted by his father, Bernard Madoff, was publicly revealed on Dec. 11, 2008, both Mark and his brother Andrew Madoff were sued by Mr. Picard. Mr. Picard accused Mark Madoff in the October 2009 lawsuit of receiving at least $66.9 million improperly through Bernard Madoff's investment company.
His lawyer has called the suit baseless and has sought to have it dismissed.
Last week, Mark and Andrew Madoff were also named in an $80 million lawsuit filed in London against them and other former directors of Madoff Securities International Ltd. by Mr. Picard and Stephen J. Akers, a joint liquidator of the that business, Mr. Picard said. The suit was filed in the United Kingdom's High Court of Justice Commercial Court, he said.
According to Mr. Picard, the lawsuit, which has not been made public under English law, accuses directors and officers of violating their duties to the company by making fraudulent payments, including some that benefited Mr. Madoff and his family.
"The directors had duties, among others, to be honest in recording the purposes and activities of the business," Mr. Akers said in a statement. But instead, he said, they allegedly signed off on false documents and misrepresented the true nature of transactions, "all of which assisted Madoff's fraudulent scheme."
"These are baseless claims against Mark and Andrew Madoff, who were not involved in the financial operations of Madoff Securities International. They were outside directors with [minimal] ownership interests," said Martin Flumenbaum, a lawyer for Mr. Madoff's sons. "They had no knowledge of their father's crimes, including any fraudulent activity related to the London entity."
Also last week, Mr. Picard sued children of Andrew and Mark, alleging that Ruth and Bernard Madoff transferred funds to them. A spokesman for the brothers and their wives declined to comment, as did Susan Elkin, Mark Madoff's former wife, who was also sued.
In a statement on Saturday, Mr. Flumenbaum called Mr. Madoff's suicide "a terrible and unnecessary tragedy. Mark was an innocent victim of his father's monstrous crime who succumbed to two years of unrelenting pressure from false accusations and innuendo. We are all deeply saddened by this shocking turn of events."
Write to Michael Rothfeld at michael.rothfeld@wsj.com
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