Sunday, February 21, 2016

French Pianist Scores Rare Win in Luxembourg Madoff-Fund Lawsuit

Good news for investors. Bad news for Madoff custodian banks.


February 18, 2016

A French concert pianist won a six-year fight to get back money she lost to Bernard Madoff’s Ponzi scheme after a Luxembourg appeals court said her bank committed a substantial error when advising her about the investment.

Banque Internationale a Luxembourg SA must pay 250,000 euros ($277,000), plus interest dating back to 2010, the Luxembourg Court of Appeal ruled, according to a copy of the judgment. The bank failed to highlight the “clearly exorbitant, exceptional risks” the client took by investing in an unregulated hedge fund.

“The bank can’t hide behind the signature” of the unidentified woman “of a waiver that was pre-drafted in language that was technically correct and comprehensible to people with some knowledge in the economic and financial area, but inappropriate when it comes to a concert pianist,” the court said in the Feb. 4 decision....

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