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UPDATE 1-HSBC says Madoff trustee's claims unfounded

Published 12/06/2010, 01:03 PM
Updated 12/06/2010, 01:12 PM

* HSBC will "vigorously defend itself" against Madoff claims

* Swiss firm Genevalor also rejects claims against it

(Adds detail)

LONDON, Dec 6 (Reuters) - HSBC Holdings said claims the bank had aided the fraud scheme of convicted swindler Bernard Madoff were unfounded and it would "defend itself vigorously" against all Madoff-related claims.

U.S. court-appointed trustee Irving Picard sued HSBC for $9 billion on Sunday, accusing it of aiding the Madoff fraud "through the creation, marketing and support of an international network of a dozen feeder funds".

An HSBC spokesman said the bank was defending itself against Madoff-related claims brought against it in various jurisdictions, including U.S. class action cases.

"HSBC believes that the U.S. court appointed trustee's claims of wrongdoing are unfounded and it will defend itself vigorously against those claims as well," the spokesman said.

The so-called feeder funds named in the lawsuit in U.S. Bankruptcy Court in New York included Swiss firm Genevalor, Benbassat & Cie which said it strongly denied any wrongdoing and rejected the claims.

"In particular, it strongly denies any allegation that it had prior knowledge of the fraud committed by Madoff," Genevalor said, adding "this unfounded action causes a significant harm to the investors and to itself". (Reporting by Steve Slater; Editing by Dan Lalor)

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