Koch Industries Sued by Madoff Firm Bankruptcy Trustee for $21.5 Million
By David McLaughlin – Feb 10, 2012 11:02 PM GMT+0000
Koch Industries Inc., the company run by billionaire brothers Charles and David Koch, was sued for $21.5 million by the trustee liquidating Bernard Madoff’s firm.
The trustee, Irving Picard, sued to recover money received from a feeder fund that invested with Madoff, according to a complaint filed yesterday in U.S. Bankruptcy Court in Manhattan. Madoff is serving 150 years in federal prison for running the biggest Ponzi scheme in U.S. history.
One of the largest closely held companies in the world, Koch Industries has businesses in chemicals, refining, consumer products and commodities trading. Charles Koch is chairman and chief executive officer of the company, and David Koch is an executive vice president.
Melissa Cohlmia, a spokeswoman for the Wichita, Kansas- based company, said Picard’s complaint was “without merit.”
“The Koch entity involved made an investment in an entirely separate fund,” she said in an e-mailed statement. “That Koch entity no longer exists and its investment was redeemed in 2005, long before anyone knew of Madoff’s fraud.”
The case is Picard v. Koch Industries Inc., 12-01047, U.S. Bankruptcy Court, Southern District of New York (Manhattan).