Madoff Victims Say Receiver ‘Barred’ From Getting Paid

Sep 3 2010 | 12:46pm ET

For the fourth time, unhappy victims of the Bernard Madoff Ponzi scheme have objected to the bills presented by the court-appointed receiver in the $65 billion fraud case.

The law firm of Baker & Hostetler, which employs trustee Irving Picard, filed a request last month for $34.6 million in legal fees for work conducted between February and May. The request totals some $288,189 per day, including weekends and holidays.

The group of “several hundred” Madoff investors argue in their own court filing that Picard is improperly trying to minimize payments—the “several hundred” are among those who object to Picard’s refusal to use Madoff’s final bogus account statements, creating “a conflict of interest as a result of which they are barred from receiving any compensation under established precedents and principles of professional conduct,” a lawyer for the investors, Helen Davis Chaitman, wrote.

Picard and Baker & Hostetler have already been paid more than $62 million; he has recovered more than $1.5 billion for Madoff victims, and is seeking billions more through lawsuits against Madoff investors and family members.

Madoff is serving 150 years after pleading guilty last year to running the biggest Ponzi scheme in history.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of