Madoff sparks French lawsuit against UBS

Bloomberg

Oddo sold the shares it held for clients in the LuxAlpha Sicav - American Selection fund on Nov. 4, more than a month before Madoff was charged with securities fraud, and has not received the money, said Arnaud Ploix, an Oddo spokesman in Paris. UBS acted as custodian for the Luxembourg-based fund.

"Oddo has an ongoing legal procedure against UBS in Luxembourg to recover those funds," Ploix said.

Madoff’s firm collapsed last month after he told his sons it was a $50 billion Ponzi scheme, according to a complaint filed by the Federal Bureau of Investigation. Shortly before he was arrested, Madoff allegedly told employees he had $200 million to $300 million left, the complaint said.

UBS didn’t send the cash after Madoff’s arrest on Dec. 11 because, as custodian, the bank needed to ensure that any action it took was in the interest of all investors, said Paul Mousel, co-head of the financial services practice at law firm Arendt & Medernach in Luxembourg, which represents UBS.