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Offshore Cases

Fairfield Sentry Limited (in Liquidation) et al -v- Migani and et al [2014] UKPC 9

April 2014 Insolvency Winding Up Liquidation

BRITISH VIRGIN ISLANDS

PRIVY COUNCIL

APPEAL TO HER MAJESTY IN COUNCIL - CALCULATING THE NET ASSET VALUE OF AN INSOLVENT FUND - LIABILITY TO DISGORGE - CONSTRUCTION OF THE ARTICLES OF THE FUND - MEANING OF CERTIFICATES

In this case, the Privy Council was invited to consider the vexed issue of how to establish the net asset value of an insolvent, fraud-tainted fund.

Fairfield Sentry was the largest feeder fund into what transpired to be a Ponzi-based scheme that was Bernard L. Madoff Investment Securities LLC (“BLMIS”).

Upon the revelation of the true nature of the Ponzi Scheme being perpetuated by BLMIS, Fairfied Sentry was placed into liquidation. In due course, its liquidator took the view that those investors who had made redemptions prior to the suspension of the calculation of NAV (which was quickly followed by the fund’s liquidation), had unfairly profited at the expense of those who were still investors at the time of its collapse. The basis upon which they had been redeemed was, he contended, mistaken, and they were liable to disgorge their payment, in favour of a rateable payment to all investors, irrespective of when they redeemed (or indeed, whether they had redeemed).

 

To continue reading full articles in PDF format:
Fairfield Sentry Limited (in Liquidation) et al -v- Migani and et al [2014] UKPC 9

 

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EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel: +1 441 298 7814
Email: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel: +1 284 852 1113
Email: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel: +1 345 814 7777
Email: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, QC
Tel: +852 2842 9553
Email: nigel.meeson@conyersdill.com

Offshore Cases

Fairfield Sentry Limited (in Liquidation) et al -v- Migani and et al [2014] UKPC 9

18 April 2014

BRITISH VIRGIN ISLANDS

PRIVY COUNCIL

APPEAL TO HER MAJESTY IN COUNCIL - CALCULATING THE NET ASSET VALUE OF AN INSOLVENT FUND - LIABILITY TO DISGORGE - CONSTRUCTION OF THE ARTICLES OF THE FUND - MEANING OF CERTIFICATES

In this case, the Privy Council was invited to consider the vexed issue of how to establish the net asset value of an insolvent, fraud-tainted fund.

Fairfield Sentry was the largest feeder fund into what transpired to be a Ponzi-based scheme that was Bernard L. Madoff Investment Securities LLC (“BLMIS”).

Upon the revelation of the true nature of the Ponzi Scheme being perpetuated by BLMIS, Fairfied Sentry was placed into liquidation. In due course, its liquidator took the view that those investors who had made redemptions prior to the suspension of the calculation of NAV (which was quickly followed by the fund’s liquidation), had unfairly profited at the expense of those who were still investors at the time of its collapse. The basis upon which they had been redeemed was, he contended, mistaken, and they were liable to disgorge their payment, in favour of a rateable payment to all investors, irrespective of when they redeemed (or indeed, whether they had redeemed).

 

To continue reading full articles in PDF format:
Fairfield Sentry Limited (in Liquidation) et al -v- Migani and et al [2014] UKPC 9

 

 

EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel.: +1 441 298 7814
Email.: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel.: +1 284 852 1113
Email.: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel.: +1 345 814 7777
Email.: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, Q.C.
Tel.: +852 2842 9553
Email.: nigel.meeson@conyersdill.com