HSBC prolonged disgraced financier Bernard Madoff’s ability to burn investors by “engineering a labyrinth” of international sources of funding for his epic Ponzi scheme, a court-appointed trustee alleged Sunday.
Trustee Irving Picard announced a lawsuit in federal bankruptcy court in Manhattan that seeks to recover $9 billion in illicit earnings and damages from the Britain-based bank.
The suit alleges that HSBC ignored warnings from its own accountants that Madoff’s phenomenal investment record was suspect.
1. What is Irving Picardâ€™s role in this scandal?
2. What is Irving Picardâ€™s background and why is this important from an accounting standpoint?
3. Â What is the alleged motivation of HSBC in this scandal?
Fox News Video with Robert Gray (2010). Picard Sues HSBC, December 6 (Retrievable online at
Â Hays, Tom (2010). Madoff Trustee Sues HSBC for $9 Billion, HuffingtonPost.com, December 5 (Retrievable online at http://www.huffingtonpost.com/2010/12/06/madoff-trustee-sues-hsbc-_n_792365.html)