Seven years after Bernie Madoff was sentenced to 150 years in prison for frauds worth an estimated US$65 billion, the legal shockwaves from his disgraced empire continues to reverberate. In a case that was recently decided by the Grand Court of the Cayman Islands, the court determined how the remaining value of a Cayman “feeder fund”, once part of the Madoff empire and now in official liquidation, should be distributed among its investors.
In this case, Herald and Primeo were open-ended investment funds. They both placed funds for investment with a Madoff-related entity called BLMIS.
In 2007, Primeo assigned the credit of its account with BLMIS to Herald in return for subscribing for shares in Herald.