A complaint filed in United States Bankruptcy Court June 8 alleges that the operators of a set of Virgin Island-incorporated companies operated “feeder funds,” taking money from investors and investing it in the fraudulent investment firm operated by Bernard L. Madoff, despite warnings that Mr. Madoff’s returns were too good to be true.
The court filing, entered on behalf of Irving H. Picard, the bankruptcy trustee managing the liquidation of Mr. Madoff’s assets and the assets of his firm Bernard L. Madoff Investment Securities, charges that United Kingdom residents Federico Ceretti and Carlo Grosso operated two VI-incorporated funds, Kingate Euro and Kingate Global, “that together fed approximately $1.7 billion of other people’s money into BLMIS.”
Both funds, like other so-called Madoff feeder funds, were completely invested in BLMIS, the complaint alleges.
See the July 14, 2011 edition for full coverage.