Investors who lost money in a $460 million Ponzi scheme run by a convicted German hedge fund manager are suing Barclays for selling his products to them.
Reuters reported that over 1,000 investors filed more than 100 lawsuits against Barclays in "regional courts in Frankfurt and Munich over warrants issues by the bank” that were linked to Helmut Kiener’s K1 Group portfolios. The investors are seeking more than $133.58 million in damages.
Lawyers for the plaintiffs have also moved the claims into a class action suit.
Kiener, dubbed “mini Madoff” by the media, was sentenced in 2011 to more than 10 years in prison on 86 counts of falsification of documents, and 10 counts of fraud and tax evasion.