Merrill Unit Faces $16M Suit Over Madoff Ties

Law360, New York (March 1, 2011, 11:51 PM EST) -- A unit of Merrill Lynch & Co. Inc. cost investors $16 million by ignoring warnings about the nature of Ponzi schemer Bernard Madoff’s fraudulent investment fund, according to a lawsuit unsealed Monday in a New York bankruptcy court.

Irving H. Picard of Baker & Hostetler LLP, the trustee appointed to recover assets for Madoff victims, has accused Merrill Lynch International & Co. CV of taking $16 million in preferential transfers via investments in Madoff feeder funds and ignoring red flags that should have tipped it off....
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