The New York trustee overseeing the liquidation of Bernard Madoff's assets has sued a hedge fund manager who fed investments to the disgraced financier.
The complaint filed in bankruptcy court on Thursday claims J. Ezra Merkin and his hedge funds should have known Madoff was involved in a giant pyramid scheme.
The trustee is seeking more than $500 million in phony principal he says Merkin withdrew from Madoff's investment firm. The money would go to jilted investors.
Madoff pleaded guilty in March to charges his secretive investment advisory operation was a fraud. He faces up to 150 years in prison.
Merkin's lawyer said he would fight the suit.