Litigation

EFG Bank Sued Over Madoff Ponzi Scheme

MIAMI — A class action complaint has been filed in the U.S. District Court for the Southern District of Florida on behalf of customers of EFG Capital International Corp. and EFG Bank who lost money in the Madoff Ponzi scheme. Bernard Madoff was arrested, pleaded guilty and was sentenced to 150 years in prison for his role in the Ponzi scheme.

A large part of the $50 billion invested in Madoff originated from investors in so-called feeder funds, which received lucrative commissions from Madoff. One of the principal feeder funds was the Fairfield Sentry Limited Fund. EFG Capital, a member of the global EFG Bank network, recommended Fairfield Sentry Limited Fund to its customers. EFG Capital, which is based in Miami, is the private banking arm of EFG Group, one of the largest Swiss banking groups.

The class action complaint alleges that EFG Capital and EFG Bank failed to conduct adequate due diligence before recommending that their customers invest in Fairfield Sentry Limited Fund. The complaint also alleges that EFG Capital failed to adequately disclose the fees it was receiving from Fairfield Sentry's owner, Fairfield Greenwich Group, in return for investing the plaintiffs' funds and the funds of the class in Fairfield Sentry.

Lead counsel for the class is the Miami law firm of Levine Kellogg Lehman Schneider + Grossman, LLP, which has significant experience, both in the United States and internationally, pursuing securities claims on behalf of investors.