Citi Wants $130M Claim Cut From Madoff Ponzi Clawback Suit

Law360, New York (August 16, 2012, 4:18 PM EDT) -- Citigroup Global Markets Ltd. asked a New York federal court Wednesday to dismiss claims relating to a $130 million swap transaction from a $430 million clawback suit brought by the trustee liquidating Bernard L. Madoff's massive Ponzi scheme, saying the transaction was protected by a safe harbor provision in bankruptcy law.

In a memorandum in support of its motion to dismiss, Citigroup said hedge fund Auriga International Ltd. had obtained leveraged exposure to Madoff feeder fund Fairfield Sentry Ltd. through Citigroup acting as an intermediary. A safe...
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