Madoff Trustee To Appeal, Warns Mets Ruling Cuts Possible Recovery

Sep 30 2011 | 11:02am ET

The court-appointed receiver in the Bernard Madoff case plans to appeal a judge's ruling that strictly limited the amount he can seek to recover from the owners of the New York Mets.

Irving Picard plans to ask U.S. District Judge Jed Rakoff for permission to appeal his decision dismissing nine of 11 charges against the Mets owners—and cutting the amount that Picard can sue them for from more than $1 billion to less than $400 million. But, according to Picard, Rakoff's decision in the Mets case has much broader implications.

A lawyer for Picard said that Rakoff's banning clawbacks of phony profits from beyond two years ago would cut the amount that could be recovered by at least $2.7 billion, and could put another $3.5 billion in question. Picard has already recovered more than $8.6 million from the $65 billion Ponzi scheme—although more than $5 billion of that is in the process of litigation.

Picard added that Rakoff's decision, and his plan to appeal it, would delay the first payments to be made to Madoff's victims. The first $272 million in checks were to be sent today.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of