# Defender Limited

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**Defender Limited** is an [investment fund](/source/Investment_fund). It was incorporated in the [British Virgin Islands](/source/British_Virgin_Islands) in 2007. Defender funneled clients' funds to [Bernard Madoff](/source/Bernard_Madoff)'s firm as part of a [Ponzi scheme](/source/Ponzi_scheme) run by Madoff.[1][2][3][4][5] Madoff was arrested in December 2008, and pleaded guilty to fraud in 2009.[2] He is serving a 150-year prison term.[1]

## Formation

Defender was formed in May 2007.[2] It was formed with the support of individuals who had encouraged investing with Madoff since 1999.[2] According to the [Securities Investor Protection Act](/source/Securities_Investor_Protection_Act) (SIPA) Trustee for BLIMIS assets [Irving Picard](/source/Irving_Picard), Defender was created by the Reliance Group. The Reliance Group was, according to Picard, in turn established by Tim Brockmann, an [investment manager](/source/Investment_manager) in Switzerland and [Gibraltar](/source/Gibraltar).[6]

## Activities

Defender acted as a [feeder fund](/source/Feeder_fund), by funneling clients' funds to [Bernard Madoff](/source/Bernard_Madoff)'s firm, [Bernard L. Madoff Investment Securities](/source/Bernard_L._Madoff_Investment_Securities) (BLMIS), as part of a [Ponzi scheme](/source/Ponzi_scheme) run by Madoff.[1][2][3][4][5] Madoff was arrested in December 2008, and pleaded guilty to fraud in 2009.[2] He is serving a 150-year prison term.[1]

## Litigation

In December 2013, Defender sued HSBC Continental Europe (formerly HSBC France; HSBC Institutional Trust Services Incorporated), an Irish subsidiary of [HSBC Bank](/source/HSBC_Bank) with registered offices in [Dublin](/source/Dublin), in an Irish court for $539 million.[3][7][8][4] Defender alleged that the bank failed to conduct adequate [due diligence](/source/Due_diligence) on Madoff, and failed to warn Defender that HSBC was not able to confirm the existence of Defender's assets.[3][7][8][9][10] In December 2018, the [High Court of Ireland](/source/High_Court_of_Ireland) ruled that Defender's claim against HSBC was reduced by 100% due to Defender's earlier settlement with BLMIS.[4] Defender appealed that decision to the Irish [Court of Appeal](/source/Court_of_Appeal_(Ireland)).[11] On April 14, 2021, the day Madoff died, the case settled immediately before proceedings were due to begin in court before Mr Justice [Mark Sanfey](/source/Mark_Sanfey), and was scheduled to last 24 weeks.[12]

On April 16, 2015, the [United States Bankruptcy Court for the Southern District of New York](/source/United_States_Bankruptcy_Court_for_the_Southern_District_of_New_York) approved an agreement between Picard on the one hand, and Defender and related entities on the other hand.[13] The BLMIS Customer Fund benefited by $93 million.[13][2] Defender received a $522.8 million claim in the BLMIS liquidation, because Defender had deposited more with BLMIS than Defender withdrew.[1]

## See also

- [List of investors in Bernard L. Madoff Securities](/source/List_of_investors_in_Bernard_L._Madoff_Securities)

## References

1. ["Madoff feeder fund settles; victims' recovery tops $10.6 billion"](https://www.reuters.com/article/us-madoff-settlement-idUSKBN0MJ2F720150323). *Reuters*. 23 March 2015.

1. Randazzo, Sara (24 March 2015). ["Madoff Trustee Strikes $93 Million Deal with Feeder Fund"](https://www.wsj.com/articles/madoff-trustee-strikes-93-million-deal-with-feeder-fund-1427222162). *The Wall Street Journal*

1. ["VI 'feeder fund' sues bank to recover Madoff monies"](http://bvibeacon.com/vi-feeder-fund-sues-bank-to-recover-madoff-monies/). *The BVI Beacon*. 4 December 2013.

1. Carolan, Mary. ["Ruling casts doubt on $141m case against HSBC's Irish arm"](https://www.irishtimes.com/business/financial-services/ruling-casts-doubt-on-141m-case-against-hsbc-s-irish-arm-1.3722911). *The Irish Times*

1. LeBor, Adam (8 October 2009). [*The Believers: How America Fell For Bernard Madoff's $65 Billion Investment Scam*](https://books.google.com/books?id=FwA5AgAAQBAJ&dq=%22defender%22+%22madoff%22+%22hsbc%22&pg=PT138). Orion Publishing Group. ISBN 9780297859222. – via Google Books.

1. [""TRUSTEE'S MEMORANDUM OF LAW IN OPPOSITION TO MOTION OF RELIANCE MANAGEMENT (BVI) LIMITED, RELIANCE MANAGEMENT (GIBRALTAR) LIMITED AND TIM BROCKMANN TO DISMISS THE TRUSTEE'S COMPLAINT BASED ON A LACK OF PERSONAL JURISDICTION""](https://www.madofftrustee.com/document/dockets/002847-defenderlimitedbrief10-05229docket49.pdf)

1. Convery, William Fry-Paul & Hegarty, Derek (November 2018). ["Hard to Gain, Easy to Lose? - Lexology"](https://www.lexology.com/library/detail.aspx?g=f2616787-5f11-4eb0-8af8-dce3a3003fcf). *lexology.com*

1. Groendahl, Boris (21 March 2011). ["HSBC warned about Madoff 'fraud and operational risks' in two KPMG reports - The Royal Gazette:Bermuda International Business"](http://www.royalgazette.com/article/20110321/BUSINESS02/703219913). *The Royal Gazette*

1. ["Irish arm of HSBC bank being sued over Madoff scheme"](https://www.independent.ie/irish-news/irish-arm-of-hsbc-bank-being-sued-over-madoff-scheme-29802611.html). *The Irish Independent*. 2 December 2013.

1. Mike. ["BVI investment fund sues HSBC's arm over Madoff Ponzi scheme - BVI Offshore Business: Grey Area"](https://web.archive.org/web/20190920184248/https://bvi-grey-area.offshore-journals.com/bvi-investment-fund-sues-hsbcs-arm-over-madoff-polzi-scheme-806.html). Archived from [the original](https://bvi-grey-area.offshore-journals.com/bvi-investment-fund-sues-hsbcs-arm-over-madoff-polzi-scheme-806.html) on 2019-09-20. Retrieved 2019-02-23.

1. ["Judge says recusal hearing in Madoff case would be 'waste of court time'"](https://www.irishtimes.com/business/technology/judge-says-recusal-hearing-in-madoff-case-would-be-waste-of-court-time-1.3739795). *The Irish Times*

1. ["Marathon Madoff Ponzi case settled before opening in High Court"](https://www.irishtimes.com/business/financial-services/marathon-madoff-ponzi-case-settled-before-opening-in-high-court-1.4537407). *The Irish Times*

1. ["Defender"](https://www.madofftrustee.com/recoveries-25.html)

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