Business Irish

Thursday 26 April 2018

Irish banker to testify in case arising from Madoff fallout

Tim Healy

A GROUP of investors who lost out following the collapse of Bernie Madoff's operations have been given High Court permission for an Irish bank employee to give evidence in their US court proceedings.

A court in New York was yesterday granted permission to take evidence from a witness in a case that arises out of the alleged negligent operation and management of Optimal Strategic US Equity Fund.

The investors claim their money was invested by the fund with Bernard Madoff Investment Services (BMIS). The money disappeared after Madoff's Ponzi scheme was exposed.

Yesterday, at the High Court in Dublin, Mr Justice Michael Peart granted orders allowing lawyers involved in the US proceedings to take evidence from David Nolan, head of investor services at HSBC Securities Services Ireland, Grand Canal Harbour, Dublin.

It is claimed that the HSBC firm served as the administrators of the Optimal US fund. As they claim Mr Nolan may be the most knowledgeable person in this regard, lawyers asked the High Court for an order allowing him to give testimony.

In court, Patrick O'Reilly said the proceedings form part of a proposed class action taken by investors against Spanish banking group Banco Santander, Optimal and Jonathan Clark.

The investors claim the defendants failed to perform due diligence on Madoff and BMIS, causing them loss.

The defendants deny all the claims against them.

Irish Independent

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