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Blizzard of Lawsuits in Madoff Case

Irving Picard is busier than a garment district loan shark after the Yankees drop a double header to The Mariners.

Bernard L. Madoff
CNBC.com
Bernard L. Madoff

As Bernie Madoff's Bankruptcy trustee, Picard is responsible for recovering cash from anyone who knowingly profited from the fraud of Madoff's vast global Ponzi Scheme.

Picard has until midnight on Saturday, which is two years to the day after Madoff was criminally charged, to file suit against those individuals and institutions. He and his team expect to file more than 1,000 lawsuits before the deadline.

Who's in the club? Here's a rundown of some highlights:

Banks (Domestic):

• JPMorgan , "Madoff's long-time banker", has been hit, with a massive $6.4 billion lawsuit. "'Just as in the children's fable, they knew the 'Emperor had no clothes,' but looked the other way, allowing the fraud to continue,'" said Picard's lawyer, Deborah Renner.

Banks (International):

UBS is being sued for $2 Billion on behalf of the victims. "Madoff’s scheme could not have been accomplished unless UBS had agreed not only to look the other way, but also to pretend that they were truly ensuring the existence of assets and trades when in fact they were not and never did,' David J. Sheehan, a partner at Baker & Hostetler LLP and counsel for Picard, said in an e-mailed statement."

• HSBC : "In the $9 billion suit Sunday, against HSBC Bank and a labyrinth of feeder funds it serviced, the trustee said this batch of defendants account for 33 percent of the money invested with Madoff. The amended complaint says HSBC ignored numerous “red flags” about the fraud from its own staff and from the outside auditors from KPMG."

BNP Paribas, which took over legacy capital. "Both Legacy and BNP Paribas were aware that something was afoot at Bernard L. Madoff Investment Securities but went ahead with their investments and transfers, anyway, the lawsuit alleges. According to Picard, Legacy received some $89.3 billion in phony profits and BNP Paribas $175 million in fraudulent transfers."

• Union Bancaire Privée. The private Swiss bank has already settled for $500 million.

Former Investors – Alleged Preferential Treatment:

Blue Star Investors LLC and Thomas H. Lee. "The trustee, New York attorney Irving Picard, sued Blue Star Investors LLC and Lee, individually, for $19.7 million in U.S. Bankruptcy Court in Manhattan yesterday."

Carl Shapiro: Shapiro and 19 members of his family have already agreed to forfeit $625 million to settle a law suit against them.

Other:

The New York Mets :Fred Wilpon and family.

The Mets couldn't finish the season above .500 last year—but they were able to make $47.8 million investing with Madoff.

Oppenheimer: Named after acquiring Tremont Group in 2001.

Mass Mutual Life Insurance. Also related to Tremont Group.

Two lawyers, both former partners at Milberg Weiss. "This action is brought to recover the fictitious profit amount so that this customer property can be equitably distributed among all the victims"

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