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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.