Charity sued for $5m over Madoff cash

By Nathalie Rothschild, October 19, 2011

The liquidator of former stockbroker Bernard Madoff's firm has sued the Jewish Association for Services for the Aged for $5.2 million.

It is one of hundreds of "clawback" suits filed by bankruptcy trustee Irving Picard in order to recover assets lost through Madoff's Ponzi scheme.

Mr Picard said he is entitled to claim back fictitious profits made by the Jewish Association over six years. He said the charity took out "non-existent profits" that were "other people's money".

Last month, Mr Picard lost his bid to claw back six years of Ponzi proceeds from the New York Mets owners. US District Judge Jed Rakoff said he could take back only two years of withdrawals.

Madoff pleaded guilty in 2009 to fabricating nearly $65 billion in profits to attract investors. He is serving a 150-year sentence.

Last updated: 12:00pm, October 19 2011