Nov 2014
BERMUDA
SUPREME COURT
WILFUL MISCONDUCT – FURTHER AND BETTER PARTICULARS – AMENDMENT
The Plaintiffs were investment companies which acted as “feeder funds” to Bernard L. Madoff Investment Securities LLC (“Madoff Securities”), an investment company established and operated by the notorious fraudster Bernard L. Madoff. The vast majority of monies raised by the Plaintiffs were transferred to Madoff Securities for investment on the Plaintiffs’ behalf. In fact, Mr. Madoff was running a Ponzi scheme and none of the monies were invested. Upon Mr. Madoff’s arrest in December 2008, the Plaintiff funds collapsed and were placed in liquidation.
The Defendant was appointed as auditor for the First Plaintiff from 1999 to 2008 and for the Second Plaintiff from 2000 to 2008. The Plaintiffs alleged that, had the Defendant done its job properly, from March 2000 onwards the Plaintiffs would not have invested any monies in Madoff Securities. The amount transferred by the Plaintiffs to Madoff Securities after that date and not recovered is well in excess of US$1 billion.