Spanish firm seeks return of Madoff monies held with Irish-registered fund

ANOTHER legal dispute arising from the bankruptcy of alleged US billion dollar fraudster Bernard Madoff has come before the Commercial Court.

Mr Justice Peter Kelly this week admitted to the court proceedings by a Spanish company against an Irish-registered fund company over its failure to pay out some e3.24 million allegedly due to investors in redemption monies.

The proceedings have been brought by Consulnor Gestion SGIIC SA against Optimal Multiadvisors Ireland plc (OMI).

OMI is a “feeder fund” which invests its assets in shares in a master fund, Optimal Multiadvisors Ltd, (OMA) a fund established in the Bahamas. OMA trades through a subsidiary — Optimal Strategic US Equity Ltd — and the latter invested its assets with Bernard Madoff.

Consulnor claims it was entitled in December last to payment of some e3.2m redemption monies from the defendant relating to shares in the Optimal Strategic US Equity Ireland Euro Fund.

However, OMI has told Consulnor, in light of the Madoff bankruptcy, that the OMI Board believed the net asset value (NAV) of that fund calculated for December 1 last was unreliable.

OMI’s board has said it could not therefore pay redemption monies based on that NAV and it has suspended payments. It also said it would continue to monitor the situation.

Senan Allen SC, for Consulnor, told Mr Justice Kelly this week his side intended to bring a motion for summary judgment for the e3.2m sought.

Maurice Collins SC, for OMI, said his side would be seeking agreement from Consulnor that the case was not a suitable one for a summary judgment application.

The judge admitted the case to the Commercial Court list and returned it to March 19.