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10-04285-brl Doc 127 Filed 08/17/12 Entered 08/17/12 14:29:55 Main Document Pg 78 of 133 non-Madoff funds to its investors, the majority of Access’s assets under management (which at their peak exceeded $3 billion) were handed over to Madoff. (Id. 88.) As of 2005, fifty-two percent of assets placed through Access were invested at BLMIS, accounting for sixty-one percent of Access’s total net revenue. (Id.) Access’s relationship with Madoff was vital to its very existence. (Id.) As Access’s portfolio of Madoff-related investment funds grew, Littaye and Villehuchet created a complex web of subsidiaries and affiliates in New York, the Bahamas, London, Luxembourg, and Switzerland. In 1998, Littaye and Villehuchet created Moving Access Defendant AIA Ltd. (originally incorporated as Alternative Advisors Limited) in the Bahamas. (Am. Compl. 24; Pergament Decl. Ex. 91.) In 2000, Littaye and Villehuchet founded Moving Access Defendant AIA Europe in London. (Am. Compl. 23; Pergament Decl. Ex. 92.) By the end of 2001, AIA Inc. created a wholly owned subsidiary, Defendant AIA LLC, which was incorporated under the laws of Delaware but had its only office at 509 Madison Avenue in New York. (See Pergament Decl. Ex. 93; Am. Compl. 22.) AIA LLC and AIA Inc. shared this office. In 2003, AIA Inc. and AIA Europe jointly created an entity in Luxembourg, Moving Access Defendant AIA (Lux), which was renamed AML in August 2008. (Pergament Decl. Exs. 94 at 1; 95 at 1–2.) In 2007, Littaye and Villehuchet created the Access-affiliated entities and Moving Access Defendants AP (Lux) in Luxembourg and AP (Suisse) in Switzerland. (Am. Compl. 25–26; Pergament Decl. Exs. 96 at 1; 97 at 1.) Each of the Moving Access Defendants, as well as AIA LLC, purported to play a critical role in Luxalpha and Groupement. (See Am. Compl. 22–27.) Littaye and Villehuchet were the founding partners, chairmen, and chief executive officers of Access and “the overseers of the [Access] empire.” (Pergament Decl. Exs. 88 at 58
10-04285-brl Doc 127 Filed 08/17/12 Entered 08/17/12 14:29:55 Main Document Pg 79 of 133 37:11–12; 98 at 7.) Access’s coordinated activity was directed by Littaye and Villehuchet out of the New York office. Marketing materials prepared by Access’s New York office refer to Access as a single company that was “[b]ased in New York City, with additional European offices in Paris, London and Luxembourg.” (Pergament Decl. Ex. 99 at 3.) Nearly all Access personnel, including Littaye and Villehuchet, attended Quarterly Strategic Meetings in New York, where they discussed changes relating to the structure and management of Access. (Pergament Decl. Exs. 89 at 41:23–43:12; 100-102.) These meetings, which were often attended by potential or current Access clients and investors, featured substantive discussions and presentations regarding Access’s business, including discussions of Access’s involvement with BLMIS-related funds and the duties of the various Access affiliates with regard to these funds. (Id.) The Quarterly Strategic Meetings also included a special “executive session,” during which Littaye, Villehuchet, and other Access managers discussed Access’s operational policies, including budgets for the upcoming year, salaries, and hiring decisions. (Pergament Decl. Ex. 89 at 110:20–111:13.) Access’s New York office purported to perform all of the due diligence, monitoring, strategy formation, and risk assessment duties for the Madoff-related investments. (Pergament Decl. Exs. 89 at 30:3–31:25, 39:16–21, 47:4–49:8, 57:9–58:16, 74:20–76:10, 81:21– 82:6; 88 at 22:23–23:10.) 2. Access Ignored Corporate Formalities with Regard to Its International Affiliates and Treated Its Business as One Entity Littaye, Villehuchet, and other Access personnel ignored the corporate separateness of the various Access entities and, in internal and external documents, held themselves out as one New York-based entity with multiple offices, variously referred to as Access Group, Access International Advisor Group, Access International Advisors, or simply Access. For example, 59
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