Liquidators of convicted fraudster Bernard Madoff's company believe that the Bank of Bermuda is holding around $80 million in customer assets.

Yesterday they asked a judge for permission to hire Island lawyer Justin Williams to pursue matters related to the money, as part of their efforts to track down and protect assets that could help to pay something back to victims of Madoff’s $65 billion fraud.

Irving Picard is the trustee appointed to liquidate Bernard L. Madoff Investment Securities LLC. In a court filing yesterday, attorneys’ acting for Mr. Picard asked a bankruptcy court judge for permission to hire Williams Barristers & Attorneys in Hamilton.

“The trustee seeks to retain Williams as special counsel because of its knowledge, expertise and experience in liquidation proceedings in the Cayman Islands and other foreign jurisdictions,” according to the filing signed by Baker & Hostetler attorney David Sheehan.

Mr. Williams, said in a declaration filed with the court that Mr. Picard wants counsel to represent him in matters related to $80 million held at the Bank of Bermuda. The funds belong to the bankruptcy estate, Mr. Williams said.

A Bank of Bermuda spokeswoman said yesterday that the bank does not comment on active litigation.

Mr. Williams will also advise on cross-border insolvency issues and asset tracing and recovery, and expects “where necessary and appropriate, to pursue litigations seeking recovery of funds”, the statement said.

Mr. Picard is responsible for conducting a broad investigation of Madoff’s assets and actions and recently sought permission to hire lawyers to represent him in Gibraltar and Luxembourg. Mr. Picard said he’s already recovered about $1 billion to repay Madoff clients.

Bernard Madoff pleaded guilty March 12 to defrauding investors by using money from new ones to pay off old ones in a $65 billion Ponzi scheme. He faces as many as 150 years in prison at his sentencing in June.