Jury To Hear Madoff Trustee’s Suit Against Mets Owners

Nov 28 2011 | 10:55am ET

Madoff bankruptcy trustee Irving Picard will get to make his case against the owners of the New York Mets before a jury.

U.S. District Judge Jed Rakoff ruled Wednesday in Manhattan that the trustee has the constitutional right to have a jury hear his $386 million lawsuit against the Mets owners, including Fred Wilpon and Saul Katz.

In so ruling, Rakoff rejected the Mets owners’ claim that Picard had no right to a jury trial because he, like Madoff's firm itself, could not bring fraudulent transfer claims, reports Reuters.

"This confuses the right to a jury trial with a right to bring a claim," Rakoff wrote. "(Madoff's firm) might well be barred from bringing fraudulent conveyance claims on the facts of this case; but if it could bring such claims, it would have a right to a jury trial on those claims."

Picard accuses the Mets owners of fraudulently taking money out of Bernard L. Madoff Investment Securities, the investment company run by convicted Ponzi schemer Bernie Madoff.

Rakoff set March 19, 2012 as the trial date.

The $386 million suit is all that remains of Picard’s original demand for $1 billion from the Mets owners, whom he claimed "willfully blinded themselves" to Madoff's fraud. Rakoff earlier threw out nine of Picard’s 11 claims on the grounds that the trustee could attempt to recover “fictitious” profits and principal in only the last two years of the Ponzi scheme, not the last six years as Picard had sought.

The Mets owners have denied Picard’s accusations.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

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

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of