Support group formed for Luxembourg victims of Madoff fraud

Support groupA group of victims, both private and institutional investors, who invested in the Luxembourg–based fund known as Luxalpha, has been formed.

Luxalpha was a Madoff-established Luxembourg investment fund for which the Swiss bank, UBS, provided custodial services and which was marketed in Europe by Access International.

The Meeschaert group and its members have a claim over €50 million formed from just over a dozen investors.

The association’s goal is to defend the interests of the victims of the Madoff fraud. Cédric Meeschaert, president of Meeschaert says: “Our group will strive to ensure that our claims will at least be considered in the American bankruptcy proceedings.”

Asset manager Meeschaert is the only financial institution to have assumed such responsibility on behalf of its clients and to have totally compensated all of its clients in 2009 and 2010 for their losses stemming from Luxalpha investments.

Despite many victims of Madoff’s fraud being compensated through the US bankruptcy law’s “clawback” mechanism, the Luxalpha fund, and thus its investors, have not yet been authorised by American law to be a part of these redistributions.

“We will explore every possible legal option to ensure that our claim is considered by the American bankruptcy trustee, Irving Picard,” says Cédric Meeschaert.

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