New York (HedgeCo.net) – Koch Industries is being sued in relation to the biggest Ponzi scheme in U.S. history. The hedge fund fraud that Bernie Madoff pulled off received money from a Koch feeder fund, according to Irving Picard, the Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC.
The company run by billionaire brothers Charles and David Koch, is being sued for $21.5 million, according to the complaint filed Feb. 9 in U.S. Bankruptcy Court in Manhattan. Madoff is currently serving 150 years in federal prison.
“The Koch entity involved made an investment in an entirely separate fund,” Melissa Cohlmia, a spokeswoman for Koch Industries said in an e-mail, according to Bloomberg. “That Koch entity no longer exists and its investment was redeemed in 2005, long before anyone knew of Madoff’s fraud.”
The case is Picard v. Koch Industries Inc., 12-01047, U.S. Bankruptcy Court, NY.
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