Plaintiff, individually and on behalf of all others similarly situated, by its attorneys,alleges the following upon information and belief, except for those allegations as to itself, whichare alleged upon personal knowledge. The allegations are based on counsel’s investigation,complaints filed by the United States Government and Securities and Exchange Commission(“SEC”), reports and interviews published in the press, and information obtained by Plaintiff andPlaintiff’s counsel.
NATURE OF THE ACTION
Plaintiff’s claims arise from the massive fraud perpetrated by Bernard L. Madoff (“Madoff”) through his investment firm Bernard L. Madoff Investment Securities LLC(“BMIS”). As the world learned on December 11, 2008, Madoff and BMIS controlled billions of dollars in investments which purportedly earned stable returns. In truth, these returns wereentirely fictitious and part of the largest Ponzi scheme in history. The fraud orchestrated byMadoff and BMIS—facilitated by the reckless, grossly negligent, and fraudulent conduct of Defendants here—cost investors an estimated $64.8 billion based upon the reported value of thousands of BMIS client accounts as of November 30, 2008.2.
On March 12, 2009, Madoff pled guilty to eleven felony counts of fraud, perjury,theft, and international money laundering in a criminal proceeding brought by the United StatesAttorney’s Office for the Southern District of New York. In his plea allocution, Madoff statedthat, “for many years up until my arrest on December 11, 2008, I operated a Ponzi schemethrough the investment advisory side of my business, Bernard L. Madoff Securities LLC…. As Iengaged in my fraud, I knew what I was doing [was] wrong, indeed criminal.”3.
Plaintiff invested with Madoff and BMIS indirectly through Kingate Global Fund,Ltd. (“Kingate Global” or the “Fund”), one of the so-called “feeder funds” into Madoff’s