VUL Policyholders Accuse Argus of Losing Billions to Madoff

NEW YORK - A group of variable universal life insurance policyholders have sued Argus Group Holdings Ltd., alleging that their policies may be worthless due to the investment in funds operated by Bernard Madoff. Chateau Fiduciaire S.A. v. Argus International Life Bermuda Ltd., No. 09-00557 (S.D. N.Y.).

The Jan. 20 complaint was filed in the U.S. District Court for the Southern District of New York against Argus and several investment funds, money managers and companies.

"By failing to investigate and acting in willful blindness towards these clear red flags and the suspicious nature of Madoff's operations and investment results, Defendants …