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Madoff liquidator subpoenas 13 exchanges, firms

THE trustee liquidating the brokerage of accused fraudster Bernard Madoff has subpoenaed 13 exchanges and clearinghouses, including the Chicago Board of Trade, as he tries to recover money for victims of Madoff's alleged US$50 billion Ponzi scheme.

Irving Picard, the trustee, disclosed the subpoenas in filings on Monday with the US bankruptcy court in Manhattan.

It was not immediately clear what information he was seeking in connection with the liquidation of Bernard L. Madoff Investment Securities LLC.

Other entities receiving subpoenas included BATS Trading Inc, Bear Wagner Specialists LLC, The Clearing Corp, CME Clearing House, Gelber Group, Hedge Street Inc, ICE Clear US Inc, Interactive Brokers Group Inc <IBKR.O>, Knight Capital Group Inc <NITE.O> LaBranche & Co <LAB.N> Peak 6 Investments LP and Timber Hill LLC, court filings showed.

The subpoenas were issued under a federal bankruptcy rule that limits Picard's inquiries to the acts, conduct, property and liabilities of Madoff's brokerage.

Jefferies & Co, part of Jefferies Group Inc <JEF.N>, also got a subpoena, according to a Feb. 13 court filing.

Picard earlier this month said he had recovered about US$946 million for defrauded customers of Madoff's firm.

Kevin McCue, a spokesman for Picard at the law firm Baker and Hostetler LLP, did not immediately return requests for comment.

David Battan, general counsel for Interactive Brokers and Timber Hill, said those firms would comply with the subpoenas. He said their only involvement with Madoff was through a small account that Madoff Securities had with Interactive Brokers, and that the funds have been turned over to the trustee.

BATS spokesman Randy Williams and CME Group Inc <CME.O>, spokesman Allen Schoenberg declined to comment. The other companies could not be reached or did not immediately return calls seeking comment. CME Group owns the CBOT and the CME Clearing House.

The case is Securities Investor Protection Corp v. Bernard L. Madoff Investment Securities LLC, US Bankruptcy Court, Southern District of New York (Manhattan), No. 08-01789.


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