An appeals court may soon consider whether shareholders who withdrew money from a Virgin Islands-based hedge fund that had invested money with Bernard Madoff ’s securities firm before his Ponzi scheme was discovered should be allowed to keep the money.
The Eastern Caribbean Supreme Court of Appeal met Tuesday to consider a lawsuit that KRyS Global, the firm liquidating the hedge fund Fairfield Sentry, filed against dozens of the fund’s former shareholders, hoping to recover millions of dollars worth of assets that were gained from years of harvesting positive returns from Mr. Madoff ’s firm.
But several of the hedge fund’s shareholders – typically large institutional investors such as banks — objected to the attempts to “claw back” the assets.
See the Jan. 19, 2012 edition for full coverage.