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Madoff Securities International liquidators obtain recognition in U.S., freeze vintage Aston Martin

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Simon Rothschild
Bankside Consultants    Tel: 00 44 (0) 20 7367 8888/00 44 (0)7703 167 065

The Joint Provisional Liquidators of Madoff Securities International Limited (MSIL), the UK company that had been owned and operated by convicted fraudster Bernard Madoff, have obtained recognition in U.S. Bankruptcy Court and have obtained an order restraining a vintage DB 2/4 Aston Martin automobile registered to Peter Madoff, Bernard’s brother and director of compliance at his rogue trading firm,   The  automobile was purchased by Bernard for his brother Peter for over $235,000 using funds taken from MSIL.

The Joint Provisional Liquidators are Mark Byers, Andrew Hosking and Steve Akers, all partners in Grant Thornton UK LLP.

The Joint Provisional Liquidators sought recognition of their right to act for MSIL under Chapter 15 of the Bankruptcy Code, which allows foreign liquidators to obtain assistance in the U.S. Courts in investigating, locating and seizing assets that belong to non-U.S company.  The MSIL Liquidators were appointed by the English High Court in December 2008 and have been working closely with the U.S. Trustee for Bernard Madoff International Securities (BMIS), the company described by its founder, Bernard Madoff, as a “giant Ponzi scheme,” which he estimated to have lost $65 billion of investor funds.

MSIL was a trading operation in London that principally traded for the benefit of the Madoff family.  MSIL funds were used to make numerous large purchases for the Madoffs, including yachts, houses and automobiles.

“We are grateful for the recognition and assistance of the U.S. courts,” said Steve Akers, a Joint Provisional Liquidator of MSIL and partner of Grant Thornton UK LLP in London “We hope to be able not only to obtain assets for the benefit of creditors, but also to use the discovery processes that US courts provide to assist foreign liquidators to learn as much as we can about the assets of Madoff International for the benefit of victims of this enormous fraud.”


“As an insolvency practitioner, I have sought assistance from U.S. courts and U.S. authorities on a number of previous occasions.  U.S. courts and U.S. authorities have in the past provided enormous help to me in identifying and collecting assets for the benefit of creditors worldwide, and we hope to do the same here.” 

Mr. Akers was previously a liquidator of Bank of Credit and Commerce International, one of the largest frauds and insolvencies in history and has been liquidator of a number of investment and hedge funds and other financial institutions.

John Verrill, of Dundas & Wilson in London who is coordinating international legal strategy for the Joint Provisional Liquidators, stated, “We have been working in Europe and many offshore jurisdictions under established mechanisms for obtaining assets and assistance.  The assistance of the United States will also be of crucial importance in identifying and recapturing assets wherever they can be found.”