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October 18, 2011

Madoff Trustee Seeks $5.2-Million 'Clawback' From Charity for Seniors

Irving Picard, the Bernard Madoff bankruptcy trustee, filed suit Friday seeking $5.2-million from a New York social-service charity he alleges reaped fictitious profits from its Madoff investments, according to Bloomberg and The Wall Street Journal.

Mr. Picard said supposed earnings by the Jewish Association for Services for the Aged from its Madoff account over six years were really "other people's money" and should be returned to victims of the now-imprisoned financier's massive Ponzi scheme.

The association provides housing, meals, social programs, and advocacy for the elderly. Its president, David Warren, said he was "deeply disappointed" by the suit and that the charity "will vigorously defend ourselves and will not allow it to distract us from our mission."