The trustee representing investors cheated by Bernie Madoff sued Swiss bank UBS (UBS) for $2 billion.

The suit alleges that UBS collaborated with Madoff's Ponzi scheme, The Associated Press reported. The suit alleges 23 counts of financial fraud and misconduct by UBS and related entities and individuals and seeks to recover $2 billion for Madoff's victims.

UBS assisted the Ponzi scheme, the biggest in U.S. history, by serving as the sponsor, custodian and administrator of affiliated feeder funds, the suit alleges.

The full complaint is under seal. A redacted version is available to the public.

"We have battled with UBS regarding disclosure of information about the bank's knowledge of Madoff," said Irving Picard, the trustee. "Unfortunately, they are still trying to shield this information from the public by designating all of their information as confidential."

The Madoff scheme couldn't succeed "unless UBS had agreed not only to look the other way, but also to pretend that they were truly ensuring the existence of assets and trades when in fact they were not and never did," said David Sheehan, counsel for the trustee.

Madoff is currently serving 150 years for the scheme, which cheated wealthy individuals and charities out of billions of dollars.







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honda4582

Jkennedy, I agree with you. The banks and Wall Street are conspiring to rip off the American People. What makes me the maddest is that our tax dollars paid to bail these people out, under the guise that they would then return those dollars to us in the form of principle write downs, mortgage refinancing, etc. Last I checked, six million mortgages were in some stage of foreclosure, but only four hundred thousand were being modified. Then I watched as the CEO of B of A got up in front of Congress and lied, saying that they were helping homeowners stay in their homes.

November 27 2010 at 8:07 AM Report abuse +1 rate up rate down Reply
jkennedy806

i AM GETTING MIGHTY SUSPICIOUS. There is a hidden underlying current of Investors, Wall Street and Banks, of fraud, collusion, and rackettering. the banks sold toxic dervatives to investors (Madeoff was an investor) with Wall Street's blessing and the rating companies just handing out triple A ratings for junk, and it just was on a perpetual cycle. SEC and Barney at the Banking Committee just looked the other way. Now we have countries that bought into this PONZI scheme that are bellying up, A country is tanking. This isn't just about Bernie Madeoff, this is a industry wide PONZI scheme. With the government's blessing. Designed to make a few people very very rich UBER Rich and bankrupt all the rest of US and world countries. I hope UBS goes down, a long with Bank of America and Citi and the rest of the too big to fail banks. You are American terrorists -- if you kill the financial economy

November 26 2010 at 10:14 AM Report abuse +2 rate up rate down Reply
willi149s

I wonder how many months he would be doing right now,instead of 150 years, if he had limited his activities to swindling only gentiles...just wondering...

November 26 2010 at 9:11 AM Report abuse +1 rate up rate down Reply
fitecf

swindlers swindling swindlers

November 25 2010 at 8:22 AM Report abuse +1 rate up rate down Reply
waltg3

While some "investors' got swindled in a Ponzi scheme, i believe that most of his "vistims' were trying to get money out of the US to Europe and Israel and that the others were laundering money.Most of his investors were trying to steal and cheat

November 24 2010 at 4:01 PM Report abuse -1 rate up rate down Reply
2 replies to waltg3's comment
luvtopleaze

What planet are you from ? Madoff's operation was US based and his presumed investments were in US domestic securities. Furthermore, how can you launder money that either did not exist or was used to support the growth of Ponzi scheme ? The investors were "investors" looking for a stable return with minimal risk. Your statement about "steal and cheat" reflect naivity on your part.

November 25 2010 at 12:21 PM Report abuse +2 rate up rate down Reply
jkennedy806

It's time to do away with money on paper, if you don't have the cold cash somewhere documented, then you shouldn't be playing the game. That should get rid of 75% of Wall Street. JUST MONEY

November 26 2010 at 10:16 AM Report abuse rate up rate down Reply
robsssss

Why only 2 billion ? If UBS "not only to look[ed] the other way, but also to pretend[ed] that they were truly ensuring the existence of assets and trades when in fact they were not and never did" to help the Madoff scheme succeed, then UBS should be held jointly and severally liable for ALL of the losses resulting from the scheme.

November 24 2010 at 10:01 AM Report abuse +3 rate up rate down Reply
2 replies to robsssss's comment
fayeniceville7

Because he is only representing a few individuals not all of the people who were scammed.

November 26 2010 at 11:36 PM Report abuse rate up rate down Reply
teddymoe

robssss I agree but what about the jail time? Give them 150 years. That's what the rest of us would get for not paying our taxes, never mind billions of dollars of fraud. It's time for a revolution. As soon as I can get the time I'm going to lead one.

November 28 2010 at 9:44 AM Report abuse +1 rate up rate down Reply