Trustee Sues Hedge Funds Over Losses to Madoff

Moreover, the complaint said, the funds’ account records showed prices for 280 stock trades that did not match the actual price range for those stocks when the trades supposedly occurred. Some trades were shown as occurring on days that were actually holidays or weekends, according to the complaint.

“These trades were clearly fictional,” the complaint said.

Under federal law, Mr. Picard can sue to recover money withdrawn from the Madoff fund up to six years before its collapse. The lawsuit reported that Fairfield Greenwich funds withdrew $1.2 billion in the final three months of the fraud.